Metal prices mainly fell last week as the dollar rallied, while oil slipped as the supply situation improved in the United States, the world's biggest consumer of energy. A stronger US unit decreases demand for dollar-denominated commodities, such as gold, since they become more expensive for buyers using other currencies.
Gold slid to 664.33 dollars an ounce on Thursday, the lowest level since April 4. On the London Bullion Market, gold sank to 669 dollars an ounce at Friday's late fixing, from 688.80 dollars a week earlier.
On the London Bullion Market, silver prices slid to 13.04 dollars an ounce at Friday's late fixing, from 13.40 dollars a week earlier.
ETF products, the latest of which were launched this week in Switzerland, allow traders to invest money in the commodities sector, without trading on the futures market and committing themselves to the long-term delivery of the physical product.
ETF products tend to generate a sharp increase in demand by investors, which pushes up the price of the underlying physical asset. On the London Platinum and Palladium Market, platinum rose to 1,324 dollars an ounce at the late fixing Friday, from 1,311 a week earlier. Palladium decreased to 363 dollars an ounce, from 374 dollars.
The previous week, nickel and lead had struck record highs and copper neared a one-year peak owing to tight supplies. On Friday, three-month copper prices tumbled to 7,805 dollars a tonne on the London Metal Exchange, from 8,161 dollars a week earlier.
Three-month aluminium prices firmed to 2,836 dollars a tonne from 2,830 dollars. Three-month nickel prices declined to 50,200 dollars a tonne from 50,700 dollars. Three-month lead prices eased to 2,070 dollars a tonne from 2,080 dollars. Three-month zinc prices fell to 3,995.00 dollars a tonne from 4,084.50 dollars. Three-month tin prices sank to 13,900 dollars a tonne from 14,225 dollars.
The DoE report on Wednesday also showed a gain of 400,000 barrels in gasoline or petrol reserves - the first rise since early February despite market concerns over tight supplies. "Price weakness continues as a big increase in (US) crude oil inventories curbs sentiment," Barclays Capital analyst Kevin Norrish said.
Prices won back some ground later in the week on concerns about unrest in Nigeria, where output has been slashed by about one quarter owing to a series of attacks on energy facilities in the crude-rich Niger delta. For its part, the International Energy Agency warned of tighter global energy supplies and eyed current unrest in Nigeria, the world's sixth-biggest crude exporter.
The Paris-based IEA said that global oil demand would dip slightly in 2007 but cautioned that oil and petrol markets could tighten, leading to further price rises. By Friday in London, a barrel of Brent North Sea crude for delivery in June dipped to 66.34 dollars, from 66.57 dollars a week earlier.
In New York, a barrel of crude for delivery in June slid to 61.84 dollars from 63.13 dollars.
"The USDA report was a catalyst" for prices to fall before firming later on in the week, Lespinasse added. By Friday on the Chicago Board of Trade, the price of maize for July delivery fell to 3.66 dollars a bushel, from 3.91 dollars a week earlier.
Wheat for July delivery dropped to 4.91 dollars a bushel, from 4.95 dollars. July-dated soyabean meal - used in animal feed - climbed to 7.65 dollars, from 7.48 dollars. On the Liffe, London's futures exchange, the price per tonne of wheat for November delivery gained to 98.25 pounds, from 95.15 pounds the previous week.
Cocoa reached 1,087 pounds a tonne in London on Thursday - a level last seen in September 2003. By Friday on the Liffe, the price of cocoa for July delivery jumped to 1,073 pounds a tonne, from 1,025 pounds a week earlier. On the New York Board of Trade (NYBOT), the July contract increased to 1,931 dollars a tonne, from 1,857 dollars.
By Friday on the Liffe, the price per tonne of white sugar for August delivery rallied to 332.70 dollars, from 316.90 dollars a week earlier. On the NYBOT, the price of unrefined sugar for July delivery eased to 9.25 US cents a pound, from 9.32 cents.