World oil prices fell from record heights last week, plunging by nearly five dollars as rising US crude stocks calmed the market, but regaining ground as fears over tight global supply resurfaced.
Metals lost their shine, suffering from the stronger greenback which makes dollar-denominated commodities cheaper for buyers using other currencies.
The Commodities Research Bureau's index of 17 commodities fell to 312 points on Friday from 323.97 points the previous week.
GOLD: Gold prices dived following a fortnight of strong gains, undermined by a strong dollar and weaker oil prices.
"Gold lost its resilience to stay above 440 dollars as funds continued to liquidate part of their large long positions amid a stronger dollar," said Barclays analyst Sudakshina Unnikrishnan.
James Moore, analyst with specialist website TheBullionDesk.com, added that "consolidation in oil also weighed on the complex".
On the London Bullion Market, gold prices sank to 439.65 dollars per ounce at the late fixing on Friday from 447.25 dollars the previous week.
SILVER: Silver prices fell, but not as heavily as gold.
"Despite the correction in gold and the heavy selling in the industrial commodities such as oil and copper, silver stood its ground well, continuing its recent 6.90-7.12 dollar range," Moore said.
On the London Bullion Market, silver prices fell to 6.995 dollars per ounce at the late fixing Friday from 7.175 dollars the previous week.
PLATINUM AND PALLADIUM: Platinum prices fell under 900 dollars and sister metal palladium also remained under pressure from speculative selling.
"Platinum saw a brief rally... but overall the metal continued to consolidate," Moore noted.
Platinum had reached 924 dollars the previous Friday, its highest level since April 2004.
"Palladium failed to show signs of life but after the recent build-up of speculative longs... a dip towards 170 dollars is on the cards," he added.
By Friday, platinum prices declined to 887 dollars per ounce on the London Platinum and Palladium Market from 915 dollars the previous week.
Palladium prices stood at 184.50 dollars per ounce on Friday from 187 dollars.
BASE METALS: Base metals prices moved lower, with copper taking a big hit from the stronger US dollar and rising stocks.
"Investor profit taking on a stronger dollar, falling mining equities and rising copper stocks took prices rapidly away" from higher levels, Barclays analyst Ingrid Sternby said.
By Friday, three-month copper prices dropped to 3,578 dollars per tonne on the London Metal Exchange from 3,590 dollars the previous week.
Three-month aluminium prices dived to 1,895 dollars per tonne Friday from 1,922.50 dollars.
Three-month nickel prices stood at 14,780 dollars per tonne on Friday from 15,050 dollars.
Three-month lead prices decreased to 853 dollars per tonne Friday from 888 dollars.
Three-month zinc prices eased to 1,353 dollars per tonne Friday from 1,317.50 dollars.
Three-month tin prices drooped to 7,175 dollars per tonne Friday from 7,240 dollars.
OIL: Oil prices broke off from record levels this week as speculators cashed in their gains, sending crude futures tumbling by almost five dollars at one stage, before pulling back as buyers returned to the market.
"The market is undecided as to where prices will go - whether it was a temporary sell-off or whether the whole upward move is over," said Bache Financial trader Chrisopher Bellew.
London's Brent crude hit a fresh high point of 66.85 dollars per barrel on Monday, but New York's contract failed to breach the record 67.10 dollars set last Friday on heightened supply concerns and US refinery outages.
New York futures dipped as low as 62.25 dollars on Thursday, a drop of 7.0 percent from this week's high on Monday of 67 dollars.
Dealers said the underlying tone remained bullish, with robust global demand, but prices lowered as US refinery production came back on line.
The fall from record heights was pronounced on Wednesday, after the US Department of Energy published its weekly energy report.
DoE data showed that gasoline stockpiles dived by 5.0 million barrels in the week to August 12, beating forecasts of a 1.5-million-barrel drop. Crude oil inventories rose by 0.3 million barrels to 321.1 million barrels, "well above the upper end of the average range for this time of year", the DoE said.
Societe General analyst Deborah White added: "Last week, we had bearish numbers and a bullish reaction. This week, we have bullish numbers and a bearish reaction."
Traders were also absorbing a report from Goldman Sachs in which the US finance house revised upward its forecasts for oil prices, citing a lack of investment in the sector.
The bank raised its forecasts for New York crude in 2005 from 53.50 dollars a barrel to 67 dollars. And it predicted a 68-dollar average in 2006, compared with its previous forecast of 55 dollars per barrel.
Adding to supply worries, Ecuador halted crude exports amid violent protests in two oil-rich Amazon provinces where striking workers took over three dozen oil wells to force negotiations for a bigger share of oil revenues.
In addition, traders have been monitoring developments in the oil-rich Middle East, where Saudi Arabia remains on alert for possible terrorist attacks and Iran risks a showdown with the US by resuming nuclear fuel work.
By Friday, New York's light sweet crude for September delivery was trading at 64.40 dollars per barrel from 66.45 dollars the previous week.
In London, Brent North Sea crude for October delivery plunged to 63.30 dollars per barrel from 65.70 dollars.
RUBBER: Rubber prices enjoyed mixed fortunes. "A bit of a mixed week on the market," concluded Rachid Ahmed, a trader at Corrie Maccoll.
"Because all the speculator element has now disappeared, it's back down to watching the fundamentals of supply (and) demand before it finds direction."
On TOCOM, Tokyo's commodity exchange, natural rubber for September delivery decreased to 162.20 yen on Friday, from 170.20 yen a week earlier.
Singapore's RSS 3 September contract firmed to 153.25 US cents on Friday, from 152.00 cents.
COCOA: Cocoa rebounded after touching a one-year low the previous week.
"The market attracted new buying and some short-covering against speculative selling" following the low point the previous week, according to Ann Prendergast, analyst at the Refco brokerage.
"Political unease persists, but for the moment nobody sees it as a particular threat."
Ivory Coast, the world's top cocoa producer, has been split in two since a failed coup against President Laurent Gbagbo in September 2002, pitting rebels from the Muslim-dominated north against the Christian-populated south.
On Liffe, London's futures exchange, the price of cocoa for December delivery rose to 816 pounds per tonne on Friday from 805 pounds a week earlier.
On the CSCE, the New York futures market, the December contract gained to 1,387 dollars per tonne on Friday, from 1,378 dollars.
COFFEE: Coffee prices were mixed amid plentiful supply in leading producer Brazil.
Trader unease persisted over "the harvesting of the current Brazil 2005/2006 crop, which is now ahead of last year's levels", Prendergast said.
In New York earlier in the week, "fund and producer selling wiped out 4.0-percent of coffee's value, pushing prices to another four-month low", she added.
On Liffe, Robusta quality for November delivery edged down to 1,004 dollars per tonne on Friday from 1,115 dollars a week earlier.
On New York's CSCE market, Arabica for December delivery firmed to 100.50 US cents per pound on Friday, from 109.55 cents.
SUGAR: Sugar prices were also mixed, while speculative selling persisted.
"Producers and local selling trimmed gains," Prendergast said. "The market mostly traded in a range, ending on the lows."
By Friday on Liffe, the price of a tonne of white sugar for October delivery rose to 287.50 dollars from 285 dollars a week earlier.
On the CSCE in New York, a pound of unrefined sugar for October delivery stood at 9.78 US cents on Friday from 9.90 cents.
GRAINS AND SOYA: Grains and soya prices mostly fell on speculative selling and average seasonal weather in major producer United States.
On Liffe, wheat for September delivery gained to 67.20 pounds per tonne on Friday from 66.50 pounds a week earlier.
In Chicago, the price of wheat for September delivery eased to 319.50 US cents per bushel Friday from 325 cents.
Maize for September delivery nudged down to 209.75 cents per bushel on Friday from 221.50 cents.
Soyabeans for September delivery declined to 599.50 cents per bushel on Friday from 651.50 cents.
September-dated soyabean meal - used in animal feed - stood at 187.50 dollars per tonne from 209.50 dollars.
COTTON: Cotton prices continued to unwind. "Cotton futures finished lower despite strong export sales and shipments," Prendergast said.
"The supply/demand situation shows a slight supply deficit this season, but if weather is good in the US and overseas, crop totals will likely grow."
New York's December contract fell to 47.90 US cents per pound on Friday from 49.90 cents the previous week.
The Cotton Outlook Index of physical cotton stood at 52.65 cents on Thursday from 55.10 cents a week earlier.
WOOL: Wool prices touched their lowest level for three and a half years, owing to abundant supply levels.
"The Australian wool market finished this week with prices 1.1 percent lower," the Australian Wool Industries Secretariat said.
"In a disappointing week for all sectors of the industry, the closing AE index drifted below 7 dollars for the first time since November 2001."
The Australian Eastern index fell to 6.81 Australian dollars per kilo on Thursday, from 7.06 dollars.
The British Wooltops index stood at 412 pence on Thursday from 417 pence the previous week.