Base metals futures including copper and zinc last week bounced back on the week ended on Friday at the MCX platform, mainly on renewed buying support from local operators, amid tight London markets, on growing demand from China. Crude oil futures recovered smartly on a broad fund-led rally in the commodities markets, aided by a weak dollar and news of an unexpectedly deep decline in weekly US fuel stocks.
The April crude oil contract was higher by 4.4% to trade at Rs 4,253 per barrel, up by Rs 180 over the previous week. Total volume was 15.30 lakh barrels, while open interest was around 8.82 lakh barrels. US crude oil was traded at $106.91 a barrel on Friday, after earlier falling as low as $106.29 a barrel.
The active April gold contract was up 1.22% at Rs 12,195 per 10 gram. Total volume was 11,723 kg, down from 58,216 kg. Open interest was down to 4,769 kg from the previous week’s 6,757 kg. In London, gold was quoted at $926.50 on Friday. However, London gold fell more than $2 in a broad commodities sell-off on Friday with a rise in the dollar and softer crude oil prices dampening the metal’s allure as an alternative investment.
The active copper April contract was traded higher at Rs 342.25 per kg, up by nearly 7.4% over the previous week. The volume was 17,738 tonne and open interest was 8,907 tonne. London copper jumped up last week with falling global stocks sparking supply jitters as the market enters the busy demand season and as steadier equity markets boosted sentiment, analysts said. Inventories have fallen to seven-month lows, which worries consumers as the second quarter arrives. The zinc April contract was traded lower at Rs 22,812 per kg, up by nearly 13% over the previous week. The volume was 920 tonne and open interest was 187 tonne.