Copper, zinc and silver futures on MCX platform, fell further last week on continued global panic over the liquidity problem, while crude oil futures prices recovered marginally on increased concerns, over the hurricane heading towards the Gulf of Mexico region. On the other hand, Bullion markets were hit over the US subprime sector crisis, and funds withdrawn from commodities, in order to meet their obligations in the falling equities market. However, gold futures rose sharply on Friday, recovering from their steep losses in the previous sessions, after the Federal Reserve cut its discount rate to 5.75% from 6.25%. The active October gold contract was down Rs 77 or 1% to trade at Rs 8,826 per 10 gram. The active September silver contract was lower Rs 1,191 or 7% to trade at Rs. 16,328 per kg. The open interest was 426 kg. Silver in London was traded lower at $11.55 an ounce on Friday. ?Short-term, the outlook for gold is still quite unclear, with the rise in speculative and investment interest in the metal, leaving it vulnerable to further bouts of risk aversion,? said James Moore, analyst.
The active September crude oil contract was higher marginally at Rs 2,966 per barrel. The open interest was 8.46 lakh barrels. Crude oil WTI spot was traded steady at $70.99 a barrel. Crude oil prices are expected to stay sideways, as concerns still linger over the hurricane heading towards the Gulf of Mexico region. Moreover, the recent report of the energy department showed there was an enormous decline in crude and gasoline inventories. The active August copper contract was down Rs 21.25 a kg or 7% to trade at Rs 285.25 per kg. LME copper was traded lower at $6850 a tonne, down by $596. Copper, an industrial metal largely tied to the underlying pulse of the world economy, took the brunt of the metals-wide sell-off last week, on fears that a worsening credit environment in the US would seep into world economies, slowing economic expansion and, with it, demand for raw materials.
