Gold forges ahead, copper harder and crude oil firm

Written by Commodities Bureau | Mumbai | Updated: Dec 2 2008, 05:09am hrs
Futures prices of all the major bullion, energy and base metals contracts on the national commodity exchanges continued to rule higher mainly on the week ended on Friday.

Futures trading turnover reduced significantly over the previous week, as exchanges remained closed on Thursday due to terror attacks in Mumbai and trading activities remained halted. Last week, terrorists hit at least 10 targets in central and south Mumbai, including Taj Mahal, Trident Hotel, hospitals and railway stations.

Crude oil once again fell below $54 a barrel last week in London as Opec gathered to consider cutting production in an attempt to halt the slide in prices.

The MCX Crude oil December contracts prices improved by 3.78% to trade at Rs 2,660 per barrel on Friday over the previous week. Opec secretary general Abdalla Salem El-Badri said ahead of a consultative meeting of the Organization of Petroleum Exporting Countries in Cairo on Saturday that the "market is over-supplied."

Oil prices fell below $54 a barrel to reach $52.85 amid fears that global demand for crude oil is set to fall further.

Gold in the London market traded at an almost five-months high last week on dollar weakness. The MCX Gold December contracts were higher by 6.4% to settle at Rs 12,996 per 10 gram over the previous week.

Gold prices have also been buoyed by demand for physical metal and exchange-traded funds. Gold demand rose 18% in the third quarter, the World Gold Council said this month. The MCX Silver December contracts were higher by 5.9% to trade at Rs 17,038 per kg over the previous week.

The MCX Copper November contracts rose 2.28% to settle at Rs 188.25 per kg over the previous week.

Reports that Chile's copper output tumbled hard for a second month in a row in October, down 7%, as the world's biggest copper producer churned out 4.51 lakh tonne of the red metal, the National Statistics Institute (INE) said Friday.