Gold shines again, crude oil firm on global cue

Written by Commodities Bureau | Mumbai, January 27 | Updated: Jan 28 2008, 05:10am hrs
Gold and silver futures on the MCX platform jumped in smartly by 2.50-3% in the week ended on Friday mainly on renewed local buying interest supported by firm world markets, after a sharp fall witnessed in the global equities markets in the beginning of the week. In the world markets, London gold regained its lost ground on Thursday and Friday on the news that AngloGold Ashanti and Gold Fields suspended its South African production because of a power shortage. Crude oil and copper ruled firm over previous week.

The active February 2008 gold contract was up 3.6% at Rs 11,484 per 10 gram. Total volume was 63,693 kgs, up from 16,572 kgs over previous week.

Total open interest was lower at 11,084 kgs, from previous weeks 11,130 kgs. Gold gained as much as $10 to $922.59 an ounce and traded at $919.86.

The active March 2008 silver contract was up 2.24% to trade at Rs 21,017 per kg. The volume was 1,398 tonne. The open interest was 311 tonne. Silver was traded higher at $16.49 an ounce.

With a rebound in stock markets, commodities overall are supported by expectation of another cut in US interest rates and the dollars weakness, Hiroyuki Kikukawa, an analyst at IDO Securities in Tokyo, said.

The active February 2008 copper contract was firm at Rs 277.35 per kg.

The volume was 46,357 tonne, up from 26,181 tonne but the open interest was 12,256 tonne, down from 14,953 tonne. Copper for three-month delivery gained 2.3% to $7,182.50 a tonne on the London Metal Exchange on a decline in stockpiles of the red metal monitored both by the LME and the Shanghai Futures Exchange.