Gold future prices escalated to an all-time high point touching $1,123 per ounce today, as trade was driven by buoyant stock markets and the weak US currency. Gold has blazed a record-breaking trail in recent weeks on the back of the struggling US unit, which makes the dollar-priced precious metal cheaper for buyers holding stronger currencies, and therefore tends to boost demand.
Gold prices today crossed the crucial Rs 17,000 per 10 gram buttressed by frantic buying by jewellers for the ongoing marriage season. The yellow metal, which had been on an upward march ever since the Reserve Bank of India purchased 200 tons of gold from the International Monetary Fund early this month, got a boost from the firming trend in the global markets.
Crude oil futures opened today with firm note as the benchmark futures is trading above $78 a barrel in the global market. The domestic crude oil also is trading up in line with global sentiments. Crude ended higher yesterday, supported by data showing increased industrial activity and healthy crude imports in China while a bounce by the dollar limited oil's advance.
OPEC raised its 2010 demand growth forecast, said compliance with targets slipped to 60 percent in October and that demand may not return to pre crisis levels. Crude is trading sideways ahead of U.S. Energy Department will publish its weekly inventory report today.
Base metals demonstrated consolidation as it got hammered by Chinese imports of copper. Purchases fell to 263,109 tons, the customs office said yesterday as well as on increased demand concerns after London stock levels broke through the 400,000 tonne level.
Copper yesterday, rose 2 percent before giving up gains, as factory output growth surged in China, the world's largest metals consumer. Further adding to positive sentiment was rising euro zone industrial output numbers. A strike over wages by workers at Konkola Copper Mines (KCM), a unit of London-listed Vedanta Resources, halted most units at the facility in Zambia. Investors took more note of industrial disputes at mines, which could support prices and give indicators for future labour talks.
