LONDON, April 4: Oil prices and gold prices took a tumble this week as fears of a long and bloody war in Iraq abated somewhat as US-led forces closed in on Baghdad.

A partial resumption of oil production in the Niger Delta in Nigeria also helped to ease concerns about the supply outlook.

But worries about the strength of the US engine of global economic growth continued to gnaw at the base metals complex.

GOLD: Gold fell back over the week in a volatile market governed by the war in Iraq and the progress of the dollar.

By Friday afternoon, gold had slipped to $324.80 per ounce on the London Bullion Market from $330.75 the previous week.

At the start of the week the price surged to $335.50 an ounce on fears that the conflict in Iraq could become drawn out and very bloody for US-led forces approaching Baghdad.

Gold climbed on Monday as fresh investment in the safe-haven metal was seen on sentiment that the war for Iraq would be set to intensify as they near Baghdad, said James Moore, an analyst with specialist website TheBullionDesk.com.

Gold came under pressure as traders reacted to the fresh push made by the coalition towards Baghdad, Moore said.

SILVER: Silver prices ended the week higher, though the losses suffered by other precious metals capped gains.

Strong support has been seen from the physical sector over the past few weeks, but poor demand from the industrial sector continues to be silver’s Achilles heel, said Moore.

With the geo-economic situation still very questionable it looks set to be a testing time for the metal.

Silver was trading on the London Bullion Market at $4.3900 an ounce on Friday against $4.3850 the previous week.

PLATINUM AND PALLADIUM: Prices for both platinum and palladium continued to fall this week.

On Friday, the price of an ounce of platinum stood at $616 on the London Platinum and Palladium Market against 630 dollars the previous week.

For platinum, much of the movement was prompted by news from the Gulf, especially on Friday as US troops took Baghdad airport, said analyst Moore.

Platinum was once again under pressure prompted by the continued rapid advances being made by the allied force in Iraq, he said.

Palladium fell back due to a seeming abundance of supply and a lack of industrial demand.

On Friday, palladium prices stood at $175, against $190 the week before.

OIL: Oil prices trickled lower as US forces advanced ever closer to Baghdad, easing concerns about the potential for a long war.

The price of benchmark Brent North Sea crude oil for May delivery fell to $24.70 a barrel in late London trading on Friday from $26.62 a week earlier.

In New York, reference May-dated light sweet crude futures eased to $28.25 per barrel from 30.10 dollars the previous week.

But analysts said that prices were unlikely to collapse in the coming weeks with the situation in Nigeria still volatile and the outlook for Iraqi oil supplies still clouded in uncertainty.

Even if Iraqi exports are only out of the market for a relatively short time, we do not expect oil prices to plummet along the pattern of the 1991 Gulf War and we continue to look for a strong second-quarter price and a soft settling in the second half, said Deutsche Bank analyst Adam Sieminski.

Fighting between ethnic Ijaws and government forces in Nigeria forced oil majors in the country to slash output by around 800,000 barrels per day, a large chunk of Nigeria’s normal daily oil output of about two million barrels.

BASE METALS: Base metal prices generally slipped back this week, mainly due to weak economic figures from the United States such as increasing joblessness a nd a contracting service sector.

All the base metals have been under severe selling pressure this week, at a time when economic data have been continuously weak, said analyst Ingrid Stern by of Barclays Capital.

On the London Metal Exchange (LME), three-month copper prices fell to $1,590 per ton from 1,601 dollars the previous week.

Three-month aluminium prices dipped to $1,332 per tonne from $1,349.

Three-month nickel prices rose to $7,890 per ton from $7,770.

Three-month zinc prices slipped to $768 per ton from $777.

Three-month tin prices edged up to $4,560 per ton from $4,510.

Three-month lead prices sagged to $445 per ton from $451.

RUBBER: Rubber prices lost ground over the week in minimal trading.

Consumers are reluctant to act in the long term at the moment, they are waiting to see the developments in Iraq and the state of the global economy after war, said analyst Chris Caiger of brokers Symington.

In Kuala Lumpur, the RSS index fell to 3.88 ringgit per kilo on Thursday from 3.97 the previous week.

COCOA: Cocoa prices perked up on speculative buying, though signs of an easing of tensions in war-torn producer Ivory Coast limited gains.

Cocoa futures advanced to eight-day highs on speculative short-covering in modest volume, said Refco analyst Ann Prendergast.

Short-covering is when traders square a position under which they have sold borrowed futures in the expectation that its price will fall.

On LIFFE, London’s financial futures exchange, the price of cocoa for May delivery rose to 1,253 pounds a ton on Thursday from 1,248 the previous week.

On the CSCE, the New York futures market, the May contract firmed to $1,937 per ton from $1,911.

COFFEE: Coffee prices scaled six-week highs, boosted by investment fund buying.

Coffee futures hit six-week highs on continuing fund short-covering and fresh fund buying, said Prendergast.

The rush to new highs was mostly technical, though lack of producer selling and anticipation of the forthcoming frost season lent impetus, she added.

On LIFFE, Robusta quality for May delivery climbed to $767 per ton on Thursday from $706 the previous week.

SUGAR: Sugar prices strengthened during the week, notably in New York were speculative funds were very active.

But according to Ann Prendergast of Refco, the rises would most likely be limited as little had changed fundamentally in the market.

On LIFFE, a tonne of white sugar for May delivery was marginally up at $216 on Thursday from $215 a week earlier.

On the CSCE in New York, a pound of unrefined sugar for May delivery rose to 7.74 cents from 7.46 cents the previous week.

SOYA: US soya prices were mixed overall, with what increases there were fuelled by export demand and purchasing by investment funds.

On the Chicago Board of Trade (CBoT), a bushel of soya for May delivery rose to 585.25 cents from 580.25 the previous week.

Soyabean meal used in animal feed for May delivery fell to $171.80 per ton from 173.70 the previous week.

GRAINS: Grain prices generally rose on export demand as well as buying from speculative funds.

However the market was dampened by disappointing grain export figures published by the US Department of Agriculture (USDA) on Thursday, analysts said.

COTTON: Cotton prices improved this week, benefitting from buying by speculative funds and industry, although analysts warned the potential for falls remained.

Trade and speculative buying gave the market the boost, but it was not in heavy enough trade to breach 58.20, said Refco’s Ann Prendergast.

According to USDA figures, cotton exports for the week ending March 27, were 34 per cent up on the preceding week.

The Cotton Outlook Index of physical cotton, the average of the world’s lowest prices, slipped slightly to 61.20 cents from 61.45 cents the week before.

WOOL: Wool prices firmed over the week ahead of the seven-day Easter market closure in primary producer Australia.

Demand was strongest among the topmakers and buyers for China. European interest was reported to be up on last week, the Australian Wool Industries Secretariat said.—AFP