BR reported that crude oil and gold prices scored one month highs this week boosted by Middle East tensions the faltering dollar and upbeat economic data but other commodities diverged amid holiday curtailed US trade.

Dealers said that gold meanwhile struck another one month high late on Friday as the euro rallied against the dollar on rebounding German business confidence and hopes of a deal on Greece's latest tranche of bailout cash.

Markets were subdued towards the end of the week, with many US participants away on an extended Thanksgiving holiday break but investor sentiment won a boost from strong manufacturing output data in China. Investors shrugged off news that European Union leaders had failed to reach agreement over the 27 nation bloc's long term budget at a Brussels summit.

Brent oil prices jumped on Monday to USD 112.20 a barrel, which was the highest level since October 19 and New York crude hit USD 89.80 a barrel, last reached on October 22nd 2012. However, the market has since handed back some of the bumper gains in the wake of the Gaza truce that dimmed worries over supplies in the crude rich Middle East.

Mr Myrto Sokou analyst of Sucden Financial said that "The cease fire in the Gaza Strip has eased major oil supply concerns. However, the political and economic conditions across Middle East remain very tentative, offering mixed signals in the oil market."

Oil prices also found strong support from hopes that top consumer the United States will avoid the so called fiscal cliff of automatic tax increases and spending cuts due in January that risks a return to recession.

Crude futures then slumped Tuesday amid fresh economic strains in Europe after Moody's downgraded France's sovereign rating, warning that it was vulnerable to more deterioration as a result of poor economic prospects and exposure to the eurozone debt crisis. Sentiment was partly lifted on Wednesday by a surprise drop in supplies in the United States, which suggested strong demand.

The US Department of Energy announced that the nation's crude supplies sank 1.5 million barrels in the week ended November 16 instead of the gain of 800,000 barrels expected by analysts. By Friday on the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for January rallied to USD 87.67 per barrel from USD 85.09 for the expired December contract a week earlier. On London's Intercontinental Exchange, Brent North Sea crude for delivery in January jumped at USD 110.83 per barrel compared with USD 107.83 from a week earlier.

Gold prices leapt as the precious metal was boosted by the weak dollar while silver, platinum and palladium also forged 1 month highs. In late afternoon deals on Friday, gold touched USD 1,754.65 the highest level since October 15th 2012.

In foreign exchange activity, the European single currency climbed to USD 1.2980 which was the highest level since November 1st 2012. The weaker greenback boosts dollar priced commodities which become cheaper for buyers using stronger currencies. That tends to stimulate demand and prices. Gold also won support as a result of its safe haven status in times of geopolitical uncertainty.