The bullion surge reached new levels on Friday morning in the domestic market and set new records for copper, gold and silver before cooling off late in the day. The surge that began last week, gained momentum throughout the week and the strong international market was of great help.
Gold futures in New York held steady on Friday morning but below a new 18-year high hit overnight, as traders awaited the next move from bullish funds and investors, traders and analysts said. Prices were edging up again by midmorning, after a brief foray lower, but players felt that the rally that has hoisted gold up by 4.3% since late last week on expectations that it could soon touch $500 an ounce had cooled off a bit. December delivery gold spiked to a life-of-contract high at $489.60 an ounce in off-hours ACCESS electronic trading at the New York Mercantile Exchange, which marked the highest for futures since January 1988.
In other precious metals, silver clinched an 11-month high on the back of strong gold and was dealing from $8.065 to $8.18 its priciest level since December 2004. On the other hand crude oil was struggling and set a new five-month low as it continued its downward journey and touched the $55 mark but closed out the week strongly around the $57mark.
Pulses and others
It was a week of mixed emotions for pulses as it zoomed up on Monday with the surge led by urad. But as the week progressed the competition increased and after some serious battles rounded of the week with marginal gains on a weekly basis. But other pulses like chana and tur where not so lucky as the corrections that were expected on the technical side failed to materialise.
The story of the week other than the bullions was undoubtedly mentha oil that was firing in all cylinders and surely deserved a headline for the quality of performance. The surge of mentha oil was on the back of some sound fundamentals that saw a declining production and an increase in exports. It also cooled of after reaching new lifetime high. Other performers for the week were the guars who showed signs of recovery on strong fundamentals and wheat that looks bullish even after a week of gains due to the larger than expected drop in production.
After showing signs of recovery on Monday due to heavy rains during the latter part of the previous week rubber prices got a severe hammering not only in the futures prices but also the spot prices by the weekend as it came under severe selling pressure. Arrivals continued to improve as the week progressed so did production and tapping that resulted in pressurising the prices and pushed it down south.
Most of the buyers, including North Indians and exporters, preferred to keep off waiting for the prices to stabilise at lower levels. RSS 4 fell to Rs 64.25 and Rs 64.00 a kg respectively at Kottayam and Kochi. NMCE saw the closing of November contract that was expected to close around the 67 levels at 6530 and the active December contract ended the week with an overall loss of about 1%.
The Asian rubber prices also had a mixed week with the prices crashing down following a spate of profit booking and speculative selling at the higher prices.
The pepper prices showed signs of recovery on Friday as reports came out with regard to the government planning to put a curb on import of pepper from Srilanka. At present the global export scenario shows that the pepper exports from Sri Lanka showed a growth of nearly 30% that even dwarfed giants like Vietnam and Brazil. The near month contracts in both NCDEX and NMCE lost out nearly 2% over the past week.
Courtesy: Geojit Commodities Ltd