Crude oil and copper futures prices on the MCX platform gained further ground and moved up by over 3% last week following the slides in dollar value and tension in Middle East. Crude-oil futures in the overseas markets dropped early Friday following their first-ever close above $80 a barrel in the previous session, while natural gas futures rallied over 5% on storm concerns. Gold futures prices ruled firm last week boosted by safe haven buying and strong fundamentals.
The active October crude oil contract was higher 3.7% at Rs 3,160 per barrel. The open interest was 13.32 lakh barrels. On Thursday, crude tacked on 18 cents to finish at $80.09 a barrel. It touched an intraday high of $80.15 during the regular session and $80.20 during the electronic trading session. Both prices were all-time intraday highs for a front-month contract.
The Organisation of Petroleum Exporting Countries kept its oil demand growth view unchanged in its September report, saying it still sees growth of 1.3 million barrels of oil a day in 2007 and in 2008, an analyst said. The active October gold contract was up Rs 20 to trade at Rs 9,270 per 10 gram. London gold spot was traded $5 higher at $706 an ounce. COMEX gold had corrected on profit-taking in the exchanges and marginal gains in the US dollar.
GFMS Ltd said in an update of its annual gold survey that average gold price could rise to a record level of $690 an ounce in the second half of 2007 and further gains were likely in 2008.
Gold’s bull run is likely to continue in the medium term and prices may surge beyond last year’s 26-year high, boosted by safe-haven buying, strong fundamentals and tensions in the Middle East, GFMS said. The active November copper contract was up Rs 10.15 a kg or 3.48% to trade at Rs. 301.60 per kg. Copper had gained by more than 4% on easing concerns that economic growth will slow and expectations that industrial demand for copper will continue to rise. Markets were also supported by larger than expected decline in copper inventories at Chinese warehouses, said an analyst with Kotak Commodity Services Ltd.