Crude oil futures and gold futures on the national commodity bourses continued to gain some ground on the week ended Friday. Crude prices surged towards $70 per barrel on Thursday, recouping the previous oil trading session?s losses and leading a rally in many other commodities, such as spot gold and silver.
Goldman Sachs (GS) has turned bullish, raising its price targets for West Texas Intermediate crude for the next 18 months as it expects the recent rally to continue with the global economic recovery.
Gold prices in the international market slumped by $20 per ounce and headed for a weekly loss at $963 after official data showed the pace of job losses in the United States slowing sharply. According to gold analysts, gold could reach $1,000 soon.
MCX crude oil June futures continued to trade higher at Rs 3,247 per barrel on Friday, up by 5% over the previous week. Nymex WTI rose to $69 a barrel before settling at $68.81 and ICE July Brent added $2.83 to close at $68.71 a barrel. A major factor supporting such a strong move in daily oil prices is an upbeat forecast from Goldman Sachs, which has reviewed its price target for crude oil from $65 to $85 per barrel by the end of the year.
MCX gold June 2009 contracts traded higher at Rs 14,841 per 10 gram on Friday, up by Rs 120 over the previous week. Gold spot price in London was around $958 an ounce on Friday.
Comex gold (Aug) is expected to gain further from the current levels and remain in the range of $975-$990 levels. MCX August contract is expected to rally and trade in the ranges of Rs 14,790-15,000 levels, according to ADMISI Commodities report.
MCX silver July 2009 contracts were traded at Rs 24,136 per kg on Friday. Silver was traded on the Comex at $15.29. Comex July contract sharply recovered to trade near $15.86 an oz from $15.06 in New York.
July contract of silver is expected to rally and remain in the ranges of $15.60-16.10 levels. July silver on MCX is expected to gain and trade at Rs 24,100- 24,600 levels.