LONDON, June 16, (AFP): Commodity prices diverged this week as traders reacted to fresh eurozone turmoil and stimulus hopes ahead of crucial weekend elections in Greece. Greece was readying for its second parliamentary vote in six weeks with all the top candidates calling for various degrees of renegotiation of a bailout deal despite warnings that the country must toe the line or leave the euro. The Sunday elections were to be watched around the world amid concern over the shockwaves that a Greek euro exit would send through the global economy.

Meanwhile there were hopes that a recent string of weak US economic data would push the Federal Reserve to unleash new stimulus to boost the flagging economy at its June 19-20 meeting.
Britain on Thursday stepped up its action against the eurozone crisis by announcing that it would offer billions of pounds in cheap loans to British banks, in a co-ordinated move that took markets by surprise.
And on Friday European Central Bank chief Mario Draghi fuelled speculation of an imminent rate cut or other measures, warning of “serious downside risks” to the euro area economy.
Markets also won brief support early in the week after a deal was struck to bailout Spanish banks.
Oil: Oil prices were mixed after OPEC vowed to eliminate overproduction in order to stick by its output ceiling and boost its members’ revenue.
The Organization of Petroleum Exporting Countries decided on Thursday in Vienna, where the 12 nation cartel is based, to cut total production by 1.6 million barrels per day to meet the group’s 30 million mbpd production ceiling.
Smaller output could meanwhile give a boost to prices. Brent crude oil has tumbled from $128 a barrel in early March to below $100 on expectations of weaker demand caused by the eurozone’s troubles and a slowing Chinese economy.

OPEC Secretary General Abdullah El-Badri said that the world economy would not be threatened by oil prices as high as $110 a barrel, despite fears among consumers that more expensive crude would hinder global economic recovery. “$110 dollars a barrel is not a threat for world economic growth,” El-Badri told journalists in Vienna on Friday.
Precious Metal: Gold prices rose but “volumes remain low and volatility elevated with market participants reluctant to take on large positions ahead of the Greek parliamentary elections,” said Andrey Kryuchenkov, an analyst at VTB Capital financial group.
By late Friday on the London Bullion Market, gold climbed to $1,627.25 an ounce from $1,576.50 a week earlier.
Silver gained to $28.66 an ounce from $28.17.
On the London Platinum and Palladium Market, platinum increased to $1,493 an ounce from $1,417.
Palladium advanced to $632 an ounce from $613 an ounce.

Base Metal: Base metals prices mostly advanced over the week despite some subdued trading which saw aluminium hit near two-year lows, with sentiment lifted late on by stimulus hopes.
The Hong Kong stock exchange meanwhile on Friday announced that it had agreed to buy the London Metal Exchange for £1.39 billion (US$2.18 billion, 1.72 billion).
“Pressure on the (base metals) complex is likely to be sustained in the near-term as concerns remain with respect to the US economy, the euro crisis and a moderation in economic activity across the emerging markets,” said Deutsche Bank analyst Alison Taylor.
Hong Kong Exchanges and Clearing (HKEx) said its bid for the 135-year-old LME Holdings would allow it to “develop its own commodity offering and to diversify its revenue sources.”

Three-month aluminium slid to $1,937 a tonne from $1,979.
Three-month lead grew to $1,933.75 a tonne from $1,900.25.
Three-month tin advanced to $19,700 a tonne from $19,290.
Three-month nickel gained to $16,750 a tonne from $16,174.
Three-month zinc climbed to $1,907.25 a tonne from $1,875.
Coffee: Coffee prices hit two-year lows at 150.70 US cents a pound in New York on expectations of ample Brazilian supplies.
On LIFFE, Robusta for delivery in September traded at $2,108 a tonne compared with $2,095 for July.

Cocoa: Cocoa futures rose for a second week.
In New York on the NYBOT-ICE, cocoa for July climbed to $2,250 a tonne from $2,185.
Sugar: Sugar diverged as traders balanced tight supply worries against macroeconomic weakness.
On NYBOT-ICE, the price of unrefined sugar for July grew to 20.18 US cents a pound from 19.83 cents.
Rubber: Prices rose as traders tracked events in the eurozone.
By Friday, the Malaysian Rubber Board’s benchmark SMR20 climbed to 286.05 US cents a kilo from 280.55 cents the previous week.