Aug. 22 (Bloomberg) –Gold advanced to a record as concern the global economy will falter spurred demand for a haven investment and copper climbed on expectation of Chinese buying. Corn and soybeans advanced on speculation hot weather in the U.S. will cut crops.
Gold for immediate delivery climbed as much as 1.5 percent to a record $1,879.05 an ounce and December-delivery futures in New York gained 1.6 percent to an all-time high of $1,881.90. Copper for delivery in three months on the London Metal exchange rose by as much as 0.7 percent to $8,890 a metric ton.
"Gold has support given the risks are still there so I wouldn't want to short gold in the current environment," said Jeremy Friesen, commodity strategist at Societe Generale SA.
The metal is up 16 percent in August, heading for its best monthly performance since September 1999. Central bankers from around the world will meet in Jackson Hole, Wyoming this week amid speculation Federal Reserve Chairman Ben S. Bernanke may signal a third-round of asset purchases to boost the faltering recovery.
Copper in London climbed for a second day on speculation that China, the biggest consumer of the metal, will keep buying on price dips after stockpiles in the Shanghai warehouses fell for the first time in six weeks.
"The expectation of increasing Chinese demand in September is competing with a generally negative market environment due to concerns over the European debt crisis and the U.S. economy," Lian Zheng, an analyst at Xinhu Futures Co., said from Shanghai.
China's General Administration of Customs will release commodities trade data for July at 2:30 p.m. Shanghai time that may show refined copper imports gained for a second month, based on preliminary data issued on Aug. 10.
Corn for December delivery advanced 0.7 percent to $7.305 a bushel on the Chicago Board of Trade and soybeans for November delivery rose 0.4 percent to $13.735 a bushel. Prices advanced for a second day on concern that a week-long crop survey will show signs of declining yields in the U.S., curbing supply from the world's largest shipper of both crops.
Brent oil fell in London, narrowing its record premium to U.S. futures, as investors bet that Libyan production may recover after rebels entered the capital Tripoli in a push to force out leader Muammar Qaddafi.
The European benchmark contract tumbled as much as 1.8 percent amid speculation Qaddafi's regime is crumbling, while New York crude rebounded after a fourth week of declines. Libya's output dropped to 100,000 barrels a day last month, a Bloomberg News survey showed. That's less than 10 percent of the 1.59 million barrels the nation pumped in January, before the uprising that started in February.