Gold futures on the national bourses remained firm on the week ended on Friday, as the overseas market prices touched a two week’s high level, lifted by the strength in crude oil prices. Strong physical demand ahead of the festive season in Asia helped yellow metal prices to stay above $830 per ounce.
Crude oil prices had a nice rally in the last week; on fear of supply disruption caused by tropical storm Gustav in the Gulf of Mexico. Crude oil prices bounced back from the a weekly low of $112.36 to touch a high of $120.50 per barrel on Thursday.
The gold October contracts remained steady at Rs 11,830 per 10 gram over the previous week. Total volume was 58 tonne. Open interest was 9 tonne.
“Prices will remain susceptible to the movement in the dollar. If US economic data shows better than expected results, then the dollar may strengthen against major currencies, and cap the upside in precious metals,” an analyst with Angel Broking said. Energy companies operating in the Gulf began shutting production and evacuating personnel ahead of the storm, the biggest threat to the region’s oil infrastructure since hurricanes Katrina and Rita in 2005.
The crude oil September contracts were down 3.33% to trade at 5,080 per barrel on Friday over the previous week. Total volume was 72 lakh barrels, while open interest was 10 lakh barrels. NYMEX Oil futures are expected to have support at $110 per barrel and can face resistance at $125/132 per barrel.
The silver September contracts were down Rs 205 to trade at Rs 20,236 per kg over the previous week. Total volume increased to 876 tonne from 401 tonne over THE previous week. Open interest was 189 tonne.
The copper August contracts were down Rs 7.6 to trade at Rs 331.05 per kg on Friday over the previous week. Copper London fell last week as stockpiles rose to a six-month high, indicating demand growth is slowing. Inventories monitored by the London Metal Exchange gained 41% since the end of June to 173,375 metric tonne, the highest since February 5 stocks in Asia, Europe and the US rose. Copper prices appear to be strongly supported around $7000-$7100 levels, an analyst said.