Gold over Rs 13k mark, crude oil surges, guarseed goes down

Written by Commodities Bureau | Mumbai, Sep 28 | Updated: Sep 30 2008, 04:47am hrs
Crude oil and gold futures on the Multi Commodity Exchange of India (MCX) gained some grounds on the week ended on Friday, following the uptrend in international markets. NYMEX crude oil prices ended higher for a second week in a row. Crude oil prices touched a high of $130 a barrel on account of massive short covering on the back of the expiry of NYMEX October crude oil futures. For the rest of the week, prices traded range bound, as traders were waiting for the execution of the proposed bail-out plan of the US government to avoid a financial crisis.

The MCX Crude oil October contracts were up 7% to trade at Rs 4,916 per barrel on Friday over the previous week. Total volume was 32.25 lakh barrels, while open interest was 8.93 lakh barrels. Gold prices traded mixed in the last week after a stupendous rally in the previous week. Last week was all about the bail-out plan of the US and its implementation.

"MCX gold futures finally crossed the 13,000-mark on scattered buying support despite dull physical demand in the local market due to Shradhha Paksha," a local trader said.

The MCX gold October contracts were higher by 5% to settle at Rs 13,089 per 10 gram over the previous week. Total volume was 27,672 kg, while open interest was 7,779 kg. Gold prices faced strong resistance at $900 per ounce, as selling pressure ahead of October contract expiry led to profit booking.

The NCDEX guarseed November contracts were down 2.3% to trade at Rs 1,676 per kg over the previous week. Total volume was 1.03 lakh tonne. Open Interest was 1.39 lakh tonne.

"Increasing demand at lower levels amidst rising supplies with the fresh arrivals of early sown guar crop may keep prices in a the range of Rs 1,650-1,750 per quintal in the coming week," according to an analyst with Angel Broking.

The NCDEX pepper November contracts were higher by 4.5% to trade at Rs 13,738 per kg on Friday over the previous week. Total volume was 2,848 tonne and open interest was 7,159 tonne last week. Spot prices of pepper at Kochi were quoted at steady to marginally firm rates due to expected demand from the international market.