LONDON, Aug 9 (AFP) : Oil and gold prices won some support this week from Western sanctions imposed on Russia and owing to crises gripping Iraq and Gaza, traders said.
US jets struck jihadist positions in northern Iraq on Friday, a potential turning point in a two-month crisis Washington said was threatening to lead to genocide and to expose US assets.
President Barack Obama's order for the first air strikes on Iraq since he put an end to US occupation in 2011 came after Islamic State (IS) militants made massive gains on the ground, seizing a dam and forcing a mass exodus of religious minorities.
Over in Moscow this week, Russia retaliated against tough new Western sanctions, banning most food imports from the United States and the European Union and threatening to block flights over its airspace.
The tit-for-tat moves further heighten tensions between Russia and the West over the conflict in Ukraine, where heavy shelling was reported in the rebel-held eastern city of Donetsk on Thursday.
Elsewhere, deadly hostilities engulfed Gaza once again as a 10-year-old boy was killed on Friday and Israeli warplanes struck targets in retaliation for dozens of Palestinian cross-border rocket attacks.
OIL: Crude oil prices rose slightly over the week as geopolitical strains helped to offset an ample supply situation, traders said.
Prices rebounded from multi-month lows as the US launched air strikes on Iraq, triggering fresh worries over supply disruptions in the crude-rich country.
Markets recovered at the end of a week during which crude futures have been pressured by a firmer dollar and solid supplies, according to traders.
New York-traded prices hit a six-month low point at $96.55 a barrel on Thursday. On Tuesday, Brent North Sea crude reached $104.07 -- the lowest level for four months.
As the number-two producer in the OPEC cartel, Iraq's 11 per cent of proven world reserves plays a key role on world markets, particularly as violence has already disrupted oil exports from Syria and Libya.
On the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for September stood at $97.42 a barrel compared with $97.30 for the August contract a week earlier.
PRECIOUS METALS: Gold prices won support as traders seeking cover moved to buy up the safe-haven investment.
Gold futures hit a three-week high at $1,322.92 an ounce on Friday. Sister metal silver also rebounded from a seven-week low on Wednesday, although not by enough to finish higher over the week.
By Friday on the London Bullion Market, the price of gold rose to $1,309.75 an ounce from $1,291.25 a week earlier.
Silver fell to $20.13 an ounce from $20.34.
BASE METALS: Prices came under pressure from a firmer dollar, despite a euro fightback on Friday.
A stronger dollar which makes commodities priced in the US unit more expensive to holders of rival currencies, denting demand.
By Friday on the London Metal Exchange, copper for delivery in three months fell to $6,982 a tonne from $7,103 a week earlier.
Three-month aluminium increased to $2,021.25 a tonne from $1,987.
COCOA: Robust demand kept futures hovering near highs.
"Cocoa prices continue to hold elevated levels as strong cocoa butter demand is keeping processors busy," said Citi bank analyst Sterling Smith.
COFFEE: Prices retreated on profit-taking after recently striking multi-month peaks over concerns of tighter supplies in main producer Brazil.
"The potential for big production losses in Brazil this year are real, and traders are starting to worry about production next year as well as some... rains hit coffee areas in the south," said Price Futures Group analyst Jack Scoville.
Rains in the normally dry month of August have sparked worries that early flowering could harm bean production for the next crop.
By Friday on ICE Futures US, Arabica for delivery in September fell to 191.55 US cents a pound from 196.90 cents a week earlier.
On LIFFE, Robusta for September dropped to $1,937 a tonne from $2,114 a week earlier.
SUGAR: The market remained weighed down by high supplies of the sweet commodity.
By Friday on LIFFE, the price of a tonne of white sugar for delivery in October fell to $432.70 from $436.50 a week earlier.
On ICE Futures US, the price of unrefined sugar for October slid to 16.13 US cents a pound from 16.41 US cents a week earlier.
RUBBER: Prices slipped lower largely on falling demand by major importing countries, traders said.
The Malaysian Rubber Board's benchmark SMR20 ended at 168.60 US cent a kilo, down from 170.10 cents a week earlier.
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