The price of crude oil, in line with many other commodities, sank last week amid rising hopes that a resolution might be found to the latest upsurge in violence in the Middle East. On Friday, the Commodities Research Bureau's index of 17 commodities stood at 338.79 points, compared with 358 points the previous week.
"We expect gold to continue to trade in a largely sideways pattern in the coming sessions, with the impact of dollar movements, the (US) interest rate cycle and geopolitical developments providing much of the market's direction," said Barclays Capital analysts.
The price of gold hit a two-month high of 676.53 dollars on Monday as concerns had soared over escalating violence in the Middle East, before falling back. That was far below a 26-year summit of 730.40 dollars set last May.
The precious metal benefits from its safe-haven status in times in geopolitical instability.
On the London Bullion Market, gold prices sank to 634 dollars per ounce at Friday's late fixing, from 663.25 dollars a week earlier.
"Gold will continue to dictate much of silver's trade direction in the coming sessions," said James Moore, analyst for the specialist website TheBullionDesk.com.
On the London Bullion Market, silver prices declined to 11.01 dollars per ounce at Friday's fixing, from 11.63 dollars the previous week.
On the London Platinum and Palladium Market, platinum decreased to 1,216 dollars per ounce at the late fixing Friday, from 1,252 dollars the previous week.
Palladium fell to 308 dollars per ounce on Friday from 328 dollars the previous week.
"I think the basic underlying factor has been rising concern about the economic outlook and the extent of likely slowdown in the US in particular," said Societe Generale analyst Stephen Briggs.
"Economic growth is looking like it's slowing... and because it's the US, we're talking about global implications."
US Federal Reserve chairman Ben Bernanke had said on Wednesday that US inflation and economic growth were likely to slow, but that the Fed would stay vigilant against energy-fuelled price pressures.
On Friday, three-month copper prices on the LME fell to 7,465 dollars per tonne from 8,120 dollars the previous week.
Three-month aluminium prices sank to 2,500 dollars per tonne from 2,636 dollars.
Three-month nickel prices slid to 23,905 dollars per tonne from 26,250 dollars.
Three-month lead prices dipped to 1,055 dollars per tonne from 1,155 dollars.
Three-month zinc prices fell to 3,208 dollars per tonne from 3,525 dollars.
Three-month tin prices decreased to 8,170 dollars per tonne from 8,810 dollars.
Since striking record levels, oil prices have slumped in London and New York by about eight percent on hopes that the Israel-Lebanon crisis would neither spark a regional conflict nor involve major crude producer Iran.
On Monday, Brent spiked to 78.18 dollars per barrel, while on July 14, light sweet crude had hit an all-time high of 78.40 dollars in New York.
Both contracts have hit reverse gear since, touching low points of 72.59 dollars and 71.65 dollars respectively on Wednesday.
Prices also fell as the US Department of Energy revealed that motor fuel and crude stockpiles in the United States rose last week.
Gasoline or petrol is under scrutiny amid the so-called US driving season, which sees vacationing Americans hit the country's highways en route to their holiday hot spots.
Losses accelerated after Federal Reserve chairman Ben Bernanke suggested that US economic growth was moderating, which should curb demand in the world's biggest energy-consuming nation.
"The market's trying to come to terms with factoring how much risk there is in the current situation and finding a level," said Global Insight analyst Simon Wardell.
At about 1600 GMT on Friday in New York, a barrel of crude for delivery in September slumped to 75.10 dollars per barrel from 77.80 dollars the previous week.
In London, a barrel of Brent North Sea crude for delivery in September plunged to 74.54 dollars per barrel, from 77.68 dollars.
On TOCOM, Tokyo's commodity exchange, natural rubber for October delivery slid to 278.40 yen per kilogramme on Friday, from 284.50 yen a week earlier.
Singapore's RSS 3 October contract slipped to 236 US cents per kilogramme on Friday, from 243 cents a week earlier.
On the Liffe, London's futures exchange, the price of cocoa for September delivery stood at 861 pounds per tonne on Friday, from 988 pounds a week earlier.
On the New York Board of Trade (NYBoT), the September contract fell to 1,498 dollars per tonne on Friday, from 1,706 dollars a week earlier.
On NYBoT, Arabica for September delivery slid to 94.90 US cents per pound on Friday, from 99.30 cents.
The lack of buying interest was "due to abundant supplies and with most large consumers appearing to be well stocked".
On Liffe, the price of a tonne of white sugar for October delivery decreased to 448 dollars, from 475 dollars a week earlier. On NYBot, the price of unrefined sugar for October delivery slid to 15.34 US cents per pound, from 16.32 cents.
Maize for September delivery slid to 2.36 dollars per bushel on Friday, from 2.60 dollars. August-dated soyabean meal - used in animal feed - declined to 5.83 dollars per tonne on Friday, from 6.08 dollars. On the Liffe, the price of a tonne of wheat for November delivery increased to 84 pounds on Friday, from 77.90 pounds.
The Cotton Outlook Index of physical cotton gained to 56.40 US cents on Thursday, from 54 US cents a week earlier.
The British Wooltops index stood at 406 pence on Thursday, from 400 pence the previous week.