Commodities: Oil and gold retreat
Gold futures fell back for the first time in six sessions having had a good run in the wake of events in Pakistan which had unnerved investors.
Despite its anti-climactic end to the year gold still managed to finish 2007 around $200 higher than it started it, making it the seventh year in succession that it has risen in value over the course of a calendar year.
Copper and platinum also fell back on the last day of 2007, with copper prices undercut by the poor state of the US housing market, but silver and palladium moved higher.
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The price of crude fell for the second day in succession, albeit marginally, as US home sales data highlighted the enduring worries over consumer confidence. Though sales of existing homes rose 0.4% in November, figures for the first 11 months of 2007 were down 20%. The US consumes nearly a quarter of the world's oil production.
Earlier, oil prices were trading firmer on concerns about political stability in the Middle East. As well as the volatile situation in Pakistan, investors were concerned about reports that Iran will start generating power at its Bushehr nuclear stations next summer, which revived the US government’s fears that Iran is planning to develop nuclear weapons capability.
