/ 20 January 2006

Gold at highest level since January 1981

The spot price of gold on Friday afternoon climbed to $567 a troy ounce, its highest level since January 1981, on strong buying of the precious metal.

At 4.45pm, gold was quoted at $566,13/oz, up $8,42/oz from the metal’s previous close. In January 1981, gold was fixed at a high of $602,25/oz.

The funds continue to concentrate on firming oil prices, unresolved conflict over Iran’s nuclear research and a new terror threat by al-Qaeda, London-based Barclays Capital analysts wrote on Friday.

The spot price of rhodium climbed to a 14-and-half-year high of $3 140 a troy ounce on Friday on the back of strength in the rest of the precious-metals complex.

At 4.25pm, rhodium was quoted at $3 140/oz, up from the metal’s previous close of $3 110/oz and the highest level since August 1991.

Rhodium is mainly used in the manufacture of auto catalysts.

In November last year, United Kingdom-based group Johnson Matthey forecast the global market for rhodium to end 2005 at an estimated deficit of 46 000oz, up from an estimated deficit of 13 000oz in 2004.

South Africa was estimated to have supplied the world market with 616 000oz of rhodium or 83% of global supply in 2005, Johnson Matthey added. — I-Net Bridge