Copper, gold and crude oil futures prices on the MCX platform surged ahead on the week ended on Friday, on firm overseas markets supported by continued local buying support. Silver and zinc futures also remained firm on steady buying support.
Crude oil prices also touched a new height on continued fund buying supported by a weak dollar. LME Copper had surpassed its psychological level of $8,000 a tonne last week on a weakening dollar, heavy fund buying and potential strike actions at Peruvian mines.
In the London market, gold reached to a fresh 27 year high of $739.90 an ounce as the dollar suffered near a record low against the euro. Crude oil prices also moved up to a new all time high in the London market. The active October gold contract was largely firm to trade at Rs 9,431 per 10 gram. The price of gold surged on Friday to the highest level since January 1980 as the precious metal was boosted by the sliding US dollar. The yellow metal was also boosted by record crude oil prices.
?Gold looks set to test higher as the dollar remains under pressure and rising energy costs increase inflationary concerns,? said TheBullionDesk.com analyst James Moore.
The active December silver contract was higher Rs 57 a kg to trade at Rs 18,274 per kg following the yellow metal. In other precious metals, silver was up at $13.64 an ounce over previous week.
?Silver still has the potential to rally in the coming sessions given the bullish mood in gold and platinum, as silver is viewed as a cheaper alternative,? said James Moore.
The active November crude oil contract was higher Rs 56 at Rs. 3,220 per barrel. The open interest was 19.52 lakh barrels. Crude oil held close to an all-time high at $80.49 a barrel on Friday as investment funds weighed into the market, encouraged by historic weakness in the dollar and expectations for strong demand going into the fourth quarter.
The active November copper contract was up Rs 2 a kg to trade at Rs 319.05 per kg. The Open Interest was up at 13,082 tonne. LME copper stocks stand at 1.30 lakh tonne, about 2.5 days of global consumption and declining further. Weekly inventories at Shanghai had declined by 8,190 tonne signaling huge off-take by copper buyers ahead of week long holidays in China.