Oil stays below $80 on Europe's debt crisis woes

MUMBAI: Oil traded below $80 a barrel for a third day in New York amid concern that Europe's debt crisis will curb demand for fuels. Futures slid 1.2% as George Soros warned that a failure by European Union leaders meeting this week to produce drastic measures could spell the demise of the bloc's shared currency. Oil earlier rose 1.2% after Tropical Storm Debby approached oil and gas installations in the Gulf of Mexico.

Gold futures for August delivery rose 0.1% to settle at $1,566.90 an ounce at 1:38 pm on the Comex in New York. Silver futures for September delivery fell 0.7% to $26.724 an ounce, after earlier slipping to $26.57, the lowest since December 29.

The metal retreated 7% this week. On Nymex, platinum futures for July delivery slid 0.5% to $1,431.20 an ounce, declining for the sixth straight session, the longest since May 14. Palladium futures for September delivery slipped 0.2% to $607.20 an ounce, extending the weekly loss to 3.7%.

Indian gold futures are likely to retreat further from last week's gains, weighed by expectations of a firmer rupee, which regained some ground on Monday after hitting a record low last week. Traders in the country would also eye the progress of rains to gauge demand in the coming months.

Gold prices on MCX slipped. At 3:58 pm, the MCX gold July contract was trading at 29,786, down Rs 110, or 0.37%. So far, 25,523 contracts have been traded.

Silver for July delivery on the MCX was 1.01% lower at 52,420 per kg. Prices of most oilseeds in the Indian market have surged, especially mustard seed.

The spot as well as futures prices of mustard seed rose 5.51% and 4.56% on week-on-week basis. On National Commodity and Derivatives Exchange, mustard seed for July delivery traded up 0.96% to 3,893 per quintal.