Commodities: Weak US Dollar Lifts Gold, Silver, Oil, Copper

Thanks to the stronger US dollar, commodities enjoyed a generally firmer day on Friday.

But the strength was an illusion; behind it was a belief that the outlook for the US economy is somehow a bigger issue for investors than the struggles in Europe to Greece solvent and out of bankruptcy.

Reports over the weekend have increased fears that Greece is backsliding towards default, one way or another.

So it's no wonder that gold and silver enjoyed a good day on Friday, regardless of the greenback's strength.

Comex gold for August delivery, the most-active contract, rose $US13.60, or 0.9%, to $US1,537.30 an ounce.

For the week, gold gained 1.8%.

Comex July silver rose 53c, or 1.4%, to $US37.86 an ounce.

That was a very solid rise of 7.9% over the week, a reminder of the sort of gains the metal enjoyed before it fell off the cliff at the start of May.

Both are getting active interest from investors worried about both the unravelling of Greece and the combination of the US running up against its debt ceiling, the end to the Fed's easing next month and the slowing momentum in the economy.

US crude-oil futures also rose on Friday thanks to the weakness in the greenback.

WTI oil for July delivery rose just 36c, or 0.5%, Friday to $US100.59 a barrel on the New York Mercantile Exchange.

On the week, oil gained 1.1%.

In London Brent oil for July settlement slipped 2c to $US115.03 a barrel.

US and UK markets will be closed tonight for holidays.

In New York, Platinum for July delivery added $US21.90, or 1.2%, to $US1,800 an ounce.

The metal gained 1.7% this week, despite fears about falling demand for cars in the US and Europe.

(Platinum and palladium are used in the catalytic converters in exhaust systems.)

Palladium for June delivery rose $US2.70, or 0.4%, to $US759.90 an ounce. On the week, palladium gained 3.3%.

Copper overcame a bout of midsession weakness to settle higher.

July copper rose less than 1c to $US4.19 a pound.

It rose 1.7% over the week.

US economic data was mixed.

A consumer-sentiment index rose to 74.3 in May from 69.8 in April, but other reports showed pending home sales falling 11.6% in April and consumer spending lost momentum last month.

New York raw-sugar prices rose to a one-month high on signs of higher demand and a fall in Brazilian output that surprised the market.

Raw sugar for July delivery rose 1.3% to 22.99 USc a pound in New York.

Sugar rose 2.6% last week, the best week for some months.

Wheat for July delivery rose 0.6% on Friday, to $US8.1975 a bushel on the Chicago Board of Trade.

That was before the Russian Government announced that its export ban, imposed a year ago when the wheat crop was hit by a bad drought, will be lifted.

Weather and growing conditions were good through the northern Winter and Spring and that has seen the size of the crop improve from last year's low.

Russia's Agriculture Ministry estimates the total grain harvest may be 85 million to 90 million tonnes, up from 60.9 million tonnes last year.

Exports could hit 10 million tonnes in the June, 2012 shipping year, up from the four million tonnes in the current year (and shipped before the ban was imposed last year).

That's still less than the 18.6 million tonnes sold a year earlier.

But the improvement in Russia is unlikely to have any impact on global supplies and prices because of the big drought in Western Europe, especially France and part of Germany.

And the US Department of Agriculture reckons up to 45% of the usually huge US wheat crop is in poor condition, thanks to a combination of very wet weather, tornados and dry conditions across much of the midwest.