The MCX Crude oil November contracts were down by 12% to trade at Rs 3,537 per barrel on Friday over the previous week. With prices falling sharply, Opec has decided to take quick action and will hold its meeting in the next week.
"We expect oil prices to remain bearish in the near term with a resistance at $85 per barrel," an analyst with Angel broking said. Crude prices collapsed from their all time highs and traded at a 50% discount, which has also exerted pressure on gold prices. The MCX Gold December contracts were lower by 11% to settle at Rs 12,602 per 10 gram over the previous week. The dollar is still showing signs of strength on the back of weakness in the euro. Declining crude prices are also expected to weigh on gold prices in coming weeks.
The MCX Silver December contracts were lower by 13.4% to settle at Rs 17,360 per 10 gram over the previous week. The gold/silver ratio has made new highs. The price ratio had climbed to 81:1 last week.
The MCX Copper November contracts were lower by 4% to settle at Rs 232.85 per kg from Rs 242.80 per kg in the previous week. Prices dropped to a 33-month low last week on demand concerns amid mounting fears of a global economic slowdown.