LONDON: Commodities mostly fell this week as traders balanced the weaker dollar and stalled Greek debt talks against ongoing Iran tensions and improving global economic data.
Some markets trimmed their losses after Friday's upbeat non-farm payrolls (NFP) report in the United States, a major consumer of many raw materials.
However, the dollar rose on the better-than-expected report, which pushed many commodities lower. The stronger greenback makes dollar-priced goods more expensive for buyers using weaker currencies and tends to hit demand.
Sentiment was meanwhile clouded by uncertainty over the outcome over ongoing talks between Greece and its creditors on cutting its enormous debts.
OIL: Prices rose in London, boosted by simmering tensions in key crude producer Iran and healthy global manufacturing data, but slid in New York on the back of US demand concerns.
"The Brent/WTI spread has widened this week due to strengthening Brent prices, buoyed by strong manufacturing data and ongoing Iranian tensions," said analyst Tom Pering at energy consultancy Inenco.
"Price hikes have been limited somewhat by the continuing and stalling Greek debt talks, which do not look set for a solution soon.
He added: "WTI has been subdued slightly this week due to continuing gains in stockpiles, which indicates that demand is potentially falling.
"However, on the flipside, we have seen strong economic data, including a reduction of the unemployment rate to 8.3 percent, against predictions of remaining stable at 8.5 percent."
The US unemployment rate fell to 8.3 percent in January, its lowest level in nearly three years, thanks to an unexpected surge in hiring, government data showed.
The economy added 243,000 net jobs last month, the Labor Department reported, much better than the average analyst forecast of 155,000. Businesses stepped up hiring, adding 257,000 jobs.
"Strong and much larger than expected NFP data for January ... indicated that the US economy is showing positive signs of a potential recovery," added Pering.
Iran, meanwhile, will respond with threats of its own to intensifying warnings of military attacks and Western sanctions, its supreme leader said Friday in remarks particularly aimed at arch foe the United States.
"The United States and others have to know -- and they know -- that, in response to threats of oil embargo and war, we have our own threats which will be implemented at the right time, if necessary," said Ayatollah Ali Khamenei.
The United States and much of the West fear Iran is trying to develop the capability to make atomic weapons as part of its nuclear drive, despite Tehran's repeated assertions the programme is for peaceful purposes.
New York crude futures meanwhile dropped as American government data showed a slower pace of petroleum consumption.
The Department of Energy said total products supplied to the market over the past four weeks was down by 4.3 percent from a year earlier, while crude inventories were high for this time of year.
By late Friday on London's Intercontinental Exchange, Brent North Sea crude for delivery in March jumped to $113.38 a barrel from $111.30 the previous week.
On the New York Mercantile Exchange, West Texas Intermediate (WTI) or light sweet crude for March slid to $97.31 from $99.89.
PRECIOUS METALS: Gold soared to a two-month high and other metals hit similar peaks on better-than-expected manufacturing figures in Asian powerhouse China and also in the eurozone.
"Precious metals prices have continued to extend their gains following the better-than-expected PMI data from China and Germany," said Barclays Capital analyst Sudakshina Unnikrishnan.
Glamorous metal gold hit $1,763.15 an ounce -- which was the highest level since December 2 but still below the record peak of $1,921.15 that was struck on September 6.
However, it tumbled to as low as $1,733.35 on Friday after the latest NFP report.
By late Friday on the London Bullion Market, gold rose to $1,764 an ounce from $1,726 the previous week.
Silver gained to $33.93 an ounce from $33.48.
On the London Platinum and Palladium Market, platinum increased to $1,630 an ounce from $1,608.
Palladium climbed to $711 an ounce from $684.
BASE METALS: Base or industrial metals finished lower.
"Base metal prices have generally stabilised in early February following a very strong start to the year," added Unnikrishnan.
"Broad support remains from solid macroeconomic data, particularly indications of a stabilisation in the global industrial sector early in 2012, as well as generally robust fundamental data."
By late Friday on the London Metal Exchange, copper for delivery in three months dropped to $8,492 a tonne from $8,577 the previous week.
Three-month aluminium dipped to $2,234 a tonne from $2,263.
Three-month lead decreased to $2,206 a tonne from $2,307.
Three-month tin eased to $24,260 a tonne from $24,500.
Three-month zinc slid to $2,126 a tonne from $2,162.
Three-month nickel slipped to $21,071 a tonne from $21,698.
COCOA: Prices fell as investors took profits, one week after the market had struck the highest levels since mid-November on supply concerns in top producer Ivory Coast.
By Friday on LIFFE, London's futures exchange, cocoa for delivery in March fell to £1,447 a tonne from £1,583 a week earlier.
In New York on the NYBOT-ICE, cocoa for March sank to $2,232 a tonne from $2,454.
COFFEE: Prices lost more ground.
By Friday on LIFFE, Robusta for delivery in March dipped to $1,826 a tonne from $1,869 a week earlier.
On NYBOT-ICE, Arabica for March slid to 215.95 US cents a pound from 218.60 cents.
SUGAR: Sugar retreated after striking recent two-month highs.
"Sugar prices have now slipped back again, since weather conditions in Brazil's main growing area are favourable and India is considering releasing an additional one million tonnes of sugar for export," added Fritsch.
By Friday on LIFFE, the price of a tonne of white sugar for March decreased to $629.20 from $653.
On NYBOT-ICE, the price of unrefined sugar for delivery in March slipped to 23.61 US cents a pound from 24.82 cents a week earlier.
RUBBER: Prices declined on the back of weak demand.
The Malaysian Rubber Board's benchmark SMR20 fell to 369.95 US cents a kilo from 378.15 cents the previous week.
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