MCX crude oil futures prices continued to rule firm on the week ended on Friday. Gold, silver and copper futures prices weakened during the week as gold in London tumbled to a three-week low as the dollar extended gains against the euro, eroding the appeal of the precious metal as an alternative investment.
Silver declined following the yellow metal. After a firming trend during the week, crude oil on Friday retreated to $115 a barrel as a stronger dollar extended a sell-off and investors shifted cash to equities, but concerns over supply constraints limited losses.
The May crude oil contracts were higher by 3% to trade at Rs 4,674 per barrel, up by Rs 142 over previous week. Total volume was 24.89 lakh barrels (41.34 lakh barrels) while open interest was 20.37 lakh barrels (13.51 lakh barrels). US crude futures fell $1.01 to $115.05 a barrel, adding to a loss of $2.24 a barrel.
The active June gold contract was lower at Rs 11,541 per 10 gram. Total volume was 16,105 kg down from 35,199 kg. Open Interest increased to 8,000 kg from previous week?s 7,083 kg.
The euro has dropped as much as 2.4% from a record $1.6019 on April 22 amid speculation the Federal Reserve may slow the pace of interest-rate cuts. Sliding borrowing costs helped send gold to a record $1, 033.90 an ounce on March 17, when the euro reached a previous high.
The fall in the value of the dollar against other major currencies has helped drive buying across commodities as investors view dollar assets as relatively cheap.
The active copper April contract was traded higher at Rs 339.95 per kg, down by Rs 3 over previous week on a firm dollar and on some poor data from the US, but supply concerns in a major mine could underpin prices, analysts said.
The open interest was 8,217 tonne (9,783 tonne) and volume was 17,546 tonne (72,470 tonne). The dollar’s broad rise also pressured copper prices.