The price of gold topped 1,000 dollars an ounce this week, reaching the highest level for 18 months, and oil futures rebounded as the dollar weakened significantly on economic recovery hopes.
PRECIOUS METALS: Gold prices soared to 1,011.95 dollars an ounce - the highest level since hitting a record high of 1,032.70 in March 2008. The push higher was largely driven by weakness in the US currency, which makes dollar-priced commodities cheaper for holders of stronger currencies, boosting demand.
"The rally was supported by a weaker US dollar," ODL Markets said a precious metals report. Gold's gains look at first sight somewhat surprising - investors are said to be more confident, taking on more risk as a global recovery emerges, putting their money into riskier assets such as stocks.
But underlying the new optimism are clear concerns the recovery will prove difficult and weak, and that the huge economic stimulus programmes put in place to support growth will have to stay in place for years longer than planned. "Gold is the best, the natural hedge against everything - wars, inflation," said VTB Capital analyst Andrey Kryuchenkov.
Gold's rally helped silver hit a 13-month high of 16.99 dollars an ounce. By late Friday on the London Bullion Market, gold jumped to 1,008.25 dollars an ounce from 989 dollars a week earlier. Silver climbed to 16.89 dollars an ounce from 15.95 dollars. On the London Platinum and Palladium Market, platinum advanced to 1,292 dollars an ounce at the late fixing on Friday from 1,244 dollars. Palladium grew to 292 dollars an ounce from 290 dollars.
BASE METALS: Base metals prices experienced a mixed week. By Friday on the London Metal Exchange, copper for delivery in three months rose to 6,341 dollars a tonne from 6,265 dollars a week earlier. Three-month aluminium edged up to 1,849 dollars a tonne from 1,847 dollars.
-- Three-month lead dropped to 2,167 dollars a tonne from 2,331 dollars.
-- Three-month tin grew to 14,500 dollars a tonne from 14,260 dollars.
-- Three-month zinc slipped 1,929 dollars a tonne from 1,950 dollars.
-- Three-month nickel slid to 17,400 dollars a tonne from 18,000 dollars.
OIL: Oil prices recovered on increased signs of economic recovery.
"With growth picking up in virtually every country, a self-reinforcing process or positive 'feedback loop' is developing," analysts from Bank of America-Merrill Lynch said in a report. "Growth in individual countries is stimulating global growth, via trade and confidence channels. This adds to our confidence in the sustainability of the recovery."
The market digested much news late in the week as the Organisation of Petroleum Exporting Countries (Opec) decided to maintain its production levels as it deemed the market to be "oversupplied". The International Energy Agency meanwhile forecast higher global oil demand and a government report showed easing crude inventories in the United States.
US crude inventories fell by 5.9 million barrels last week, nearly four times more than expected, data from the US Energy Information Administration showed. But gasoline stockpiles unexpectedly rose 2.1 million barrels - experts had forecast a drop of 1.3 million barrels - and distillate stocks, including diesel and heating oil, rose two million barrels.
The global economic downturn has sapped demand for energy, dragging crude prices from record highs of above 147 dollars in July 2008 to 32.40 dollars in December. They have since recovered to hover around 70 dollars. By Friday on London's InterContinental Exchange (ICE), Brent North Sea crude for delivery in October jumped to 69.80 dollars a barrel from 66.89 dollars a week earlier. On the New York Mercantile Exchange (NYMEX), light sweet crude for October rallied to 71.98 dollars a barrel from 67.91 dollars.
COCOA: Cocoa prices struck multi-month highs in London and New York. "Values were not only lifted by underlying strength in the market... but as a result of positive global economic forces" as stock markets rose and the dollar weakened, said Sucden Financial analyst Stephanie Garner. Meanwhile Ivory Coast, the world's top cocoa producer, is facing a bitter 20 percent drop in production this season as its aging plantations, poor quality and the failure to undertake reforms take a toll.
"We are expecting a drop in production of more than 300,000 tonnes during this season," which ends in October, the president of the government committee that manages the sector, Gilbert N'Guessan, told AFP. Production, more than 90 percent of which is bound for export, should come in at around one million tonnes, as opposed to the 1.4 million tonnes originally expected and 1.3 million tonnes last season, according to the most optimistic forecasts.
By Friday on Liffe, London's futures exchange, the price of cocoa for delivery in December jumped to 1,948 pounds a tonne from 1,894 pounds a week earlier. On the New York Board of Trade (NYBOT), the December cocoa contract increased to 3,089 dollars a tonne from 2,952 dollars.
SUGAR: Sugar futures were mixed after striking 28-year highs the previous week. Global sugar prices are forecast to stay high in the coming year on tight supplies of the commodity in major consumer India. By Friday on Liffe, the price of a tonne of white sugar for delivery in December dropped to 580.80 pounds from 591 pounds a week earlier. On NYBOT, the price of unrefined sugar for March climbed to 20.70 US cents a pound from 23.61 cents.
GRAINS AND SOYA: Wheat and soya prices dropped while maize rose as the market responded to weather conditions. By Friday on the Chicago Board of Trade, maize for delivery in December climbed to 3.13 dollars a bushel from 3.06 dollars a week earlier. November-dated soyabean meal - used in animal feed - slipped to 9.11 dollars from 9.22 dollars. Wheat for December fell to 4.52 dollars a bushel from 4.72 dollars.
COFFEE: Coffee futures advanced. By Friday on Liffe, Robusta for delivery in November climbed to 1,494 dollars a tonne from 1,413 dollars a week earlier. On the NYBOT, Arabica for December increased to 126.90 US cents a pound from 121.60 cents.
RUBBER: Malaysian rubber prices extended a recent rally owing to supply shortages of the commodity caused by wet weather, dealers said. On Friday, the Malaysian Rubber Board's benchmark SMR20 surged to 211.80 US cents a kilo from 197.40 a week earlier.
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