Gold kept its sparkle as signs of weakness in the value of the dollar, coupled with unrest in Iraq, boosted demand for the precious metal. Base metals also had a good week as signs of a recovery in the global economy lured in investors hoping for a pick-up in demand for raw materials. GOLD: Gold prices held up at the highest level for seven months, with a weakening of the dollar the main supportive factor, experts said. On the London Bullion Market, the price of an ounce of gold stood at a fixing of 375.80 dollars on Friday afternoon, against 375.60 dollars the previous week. "Gold has remained pretty strong," said Barclays Capital analyst Ingrid Sternby. "Political instability in the Middle East is one factor, as it attracts investors interested in gold as a safe-heaven investment. "Weve also seen a slight pick-up in the euro, providing support." The dollar extended its losses against the euro late in the week in response to disappointing US employment figures. Gold was also supported by expectations that an agreement between the worlds major central banks to limit gold sales would be extended at an International Monetary Fund meeting in Dubai on September 23, analysts said. But with speculators stocked up with gold futures, any negative news could send prices back down again quickly, they added. "We have a large net long position in gold, which clearly represents a threat to the gold price. If the dollar strengthens on the back of better economic data, we might see some liquidations of those funds," said Sternby. SILVER: Silver prices ended slightly lower in choppy trading. On the London Bullion Market on Friday silver prices stood at 5.00 dollars per ounce, against 5.105 dollars the previous week. Silver "is divided in being a precious metal but at the same time having industrial properties, so it is moving together with gold but is also responding to positive economic data, especially in the US," said Sternby. "It exceeded the resistance level of 209 dollars so we could see further gains, the new target being 226 dollars." PLATINUM AND PALLADIUM: Platinum prices held firm at 23-year highs while pallium scaled a fresh five-month peak as speculative demand continued to favour the sister metals. "All the commodities have seen strength recently, but palladium in particular has rallied," said analyst Ross Norman of TheBullionDesk.com specialist website. "The white metals seem to be out of kilter with their fundamentals, and I think there is a recovery play going on," he said, suggesting long-term players were investing in the metals on the prospects for a surge in demand resulting from an improvement in the global economy. By Friday, the palladium price stood at 220 dollars an ounce on the London Platinum and Palladium Market against 201.50 the previous week. The platinum price stood at 712 dollars an ounce from 707. ASE METALS: Base metals prices were also favoured by speculators, with signs of recovery in the global economy boding well for demand for metals. "Weve seen another push higher this week on the back of fresh speculative fund buying," said Sternby. "Weve seen further positive economic data in the US, which have supported the economic recovery story and hopes of demand picking up." A stronger-than-expected report on the manufacturing sector from the Institute for Supply Management was seen as a particular boost to base metals prices. The ISM manufacturing index rose to 54.7 points from 51.8 in July, indicating a faster pace of economic expansion. Three-month copper prices reached the highest level since the first quarter of 2001 on the London Metal Exchange mid-week, hitting 1,820 dollars. By Friday three-month copper prices stood at 1,799.5 dollars per tonne against 1,755 a week earlier. Three-month aluminium prices rose to 1,434 dollars per tonne from 1,430. Three-month nickel prices rallied to 9,670 dollars per tonne from 9,250. Three-month zinc prices rose to 826.5 dollars per tonne from 818. Three-month tin prices firmed to 4,880 dollars per tonne from 4,875. Three-month lead prices gained to 516.5 dollars per tonne from 499. OIL: Oil prices plunged by as much as nine per cent as concerns about the low level of gasoline inventories diminished after traders returned to work after the end of the gas-guzzling US "summer driving season". By late Friday, the price of benchmark Brent North Sea crude oil for October delivery stood at 27.23 dollars a barrel in London from 29.55 dollars a week earlier. In New York, the reference light sweet crude October contract dropped to 28.78 dollars per barrel from 31.80 dollars. US crude oil stocks rose by a bigger-than-expected 1.8 million barrels to 280.4 million barrels in the week to August 29, the US Department of Energy said. Gasoline inventories showed a surprise increase of 700,000 barrels to 191.9 million in the week, while distillate fuel stocks rose by 2.9 million barrels to 124.7 million. "It was very bearish overall," said US-based analyst Marshall Steeves of brokers Refco. Speculative funds have been piling out of oil in recent days amid expectations of a weakening of demand for gasoline after the Labor Day holiday on Monday, seen as the end of the US vacation period. "The market is torn between summer and winter," said Deutsche Bank analyst Adam Sieminski, noting a switch in focus at this time of year between demand for gasoline during the US summer and distillate heating fuel in winter. The price falls fuelled expectations that the Organisation of Petroleum Exporting Countries (OPEC) will leave output quotas unchanged at its meeting in Vienna on September 24. RUBBER: Rubber prices nudged higher again thanks to robust demand. The market was enjoying "consistent demand from China and also new demand coming from Europe and America after buyers came back from their holidays," said Martin Hampson at brokers Symington. "And of course, producers are very reluctant to lower prices," he added. In Kuala Lumpur, the RSS 1 index edged up to 3.945 ringgit per kilo on Thursday from 3.875 ringgit the previous week. COCOA: Cocoa futures dipped on technical factors, but concerns about the harvest in leading producer Ivory Coast furnished underlying support. "Prolonged dryness in the Ivory Coast cocoa growing regions have given rise to negative assessments of the crop outlook, where fewer pods and inhibited new flowering project a smaller crop and shorter growing season," said Refco analyst Ann Prendergast. "Additionally, pro-government militia groups are vanquishing thousands of immigrant farmers, magnifying concern for the harvest." On LIFFE, Londons financial futures exchange, the price of cocoa for December delivery eased to 1,110 pounds a tonne on Thursday from 1,157 the previous week. On the CSCE, the New York futures market, the December contract slipped to 1,704 dollars per tonne from 1,753. COFFEE: Coffee prices streaked ahead on worries about parched conditions in Brazilian growing areas. "Constructive technicals and mounting concern about Brazil dryness damaging newly flowering trees propelled the advance," said Prendergast. On LIFFE, Robusta quality for November delivery climbed to 759 dollars per tonne on Thursday from 739 dollars the previous week. On New Yorks CSCE market, Arabica for December delivery firmed to 64.95 cents a pound from 63.10 cents the previous week. SUGAR: Sugar futures skidded lower as investment funds sold heavily to square their positions, analysts said. On LIFFE, the price of a tonne of white sugar for October delivery dropped to 187.50 dollars on Thursday from 195.10 a week earlier. On the CSCE in New York, a pound of unrefined sugar for October delivery edged down to 5.97 cents from 6.40 the previous week. GRAINS AND SOYA: Wheat prices were mixed, with US prices undermined by expectations of a weakening of demand, analysts said. Maize and soya prices gained as hot, dry weather in producer regions in the US Midwest caused concern for crops. On LIFFE, the price of a tonne of wheat for November delivery advanced to 90.00 pounds from 87.85 pounds a week earlier. In Chicago, wheat for September delivery fell back to 354.00 cents a bushel from 358.75. Maize for September delivery moved ahead to 242.50 cents a bushel from 230.00. COTTON: Cotton prices rose again on heavy fund and trade buying, analysts said. A tropical storm brewing in the Gulf of Mexico was also causing some concern for crops in the southeast of the United States. New Yorks October contract climbed to 57.92 cents a pound on Thursday from 56.75 the previous week. The Cotton Outlook Index of physical cotton, the average of the worlds lowest prices, gained slightly to 61.00 cents from 60.10. WOOL: Wool prices stabilised, edging up just 0.1 per cent in leading producer Australia. "Topmakers were active while buyers for China were active without being dominant," the Australian Wool Industries Secretariat said in its regular market review. "European activity was said to be quiet." The Australian Eastern index rose to 9.27 Australian dollars per kilo from 9.26 dollars the previous week. The British Wooltops index edged up to 552 pence from 550. P.I.N// The News