Crude oil futures prices on the MCX platform traded mixed in the last week ended Friday but gold prices witnessed one of the most volatile trading weeks in the history of gold trading. Gold prices posted its unprecedented one day gain in absolute dollar terms since 1980 on Wednesday, hitting a near five-week high, as anxiety highlighted by the US government takeover of American International Group (AIG) fueled massive safe-haven buying. Copper prices have been witnessing a gradual decline on the back of increasing LME inventory levels.
The crude oil September contracts were down 1.34% to trade at Rs 4,599 per barrel on Friday over the previous week. Total volume was 17.83 lakh barrels, while open interest was 6.76 lakh barrels. In the short term, prices can trade in the range of $90 and $107 per barrel.
Inventory fell sharply on account of the continued shut down of oil refineries in the Gulf of Mexico due to hurricane Gustav and Ike. Factors like the weakness in the dollar against major currencies and anxiety over the current financial market turmoil, lead to fresh fund buying in commodities, which had also supported oil prices during the week.
The silver December contracts were up Rs 1,236 or 7% to trade at Rs 19,355 per kg over the previous week. Total volume increased to 914 tonne from 535 tonne over the previous week. Open interest was 479 tonne.
The gold October contracts were recovered 10% or Rs 1,130 to settle at Rs 12,460 per 10 gram over the previous week. Total volume was 44,048 kg, while open interest was 7,217 kg. Investment demand is expected to support gold prices and the market remains bullish on gold prices from the long-term perspective.
“Gold prices can have short-term support at $780 and once the higher side prices are expected to have resistance at $900, consistent trading above that can lead to a sharp rise in prices,” an analyst with Angel Broking said.
The copper November contracts were lower 1.31% to trade at Rs 315.65 per kg on Friday over the previous week. Total volume has increased to 20,394 tonne from 17,156 tonne over the previous week.