The base metals futures prices on the MCX platform finally recovered its previous losses, and closed firm on the week ended on Friday, following firm Asian markets on reports of a surge in the Chinese market that shrugged off another interest rate rise on expectations of strong demand. Lead futures rose nearly 8% last week, on reports of production stoppages in China. Gold prices remained steady to firm last week. Crude oil prices edged ahead before the Christmas and New Year holidays and amid lingering concerns about energy supplies during the northern hemisphere winter.
The active February 2008 copper contract was up 2.5% to trade at Rs 264.70 per kg. Volume was 20,480 kg, up from 12,600 kg the previous week. The open interest was 14,537 tonne, down from 16,570 tonne.
The December 2007 lead contract was up 8% to trade at Rs 103.75 per kg. The volume was 17,530 tonne, up from 16,755 tonne the previous week. Open interest was 8,530 tonne, down from 9,460 tonne. Lead three months contracts on the LME rose to $2,675 a tonne.
The active January 2008 crude oil contract was higher 0.5% to trade at Rs 3, 597 per barrel. The open interest was 11.85 lakh barrels, up by about one lakh barrel, while total volume decreased to 6.76 lakh barrels from 14.86 lakh barrels. In London, Brent North Sea crude for February delivery rose 30 cent to 91.30 dollars per barrel on Friday. Analysts predicted that the market would trade within tight ranges for the remainder of 2007 – a year that has witnessed record price levels close to $100 a barrel.
The active February 2008 gold contract was firm at Rs 10,268 per 10 gram. Open interest was 10,589 kg, marginally up from 10,144 kg over the previous week. Total volume was 7,914 kg, up from 16,229 kg in previous week. Comex gold was flat and trading above $800 an ounce amid thin volumes ahead of Christmas holidays.
The dollar rose to 2-month highs against the euro and a basket of currencies. In market news, China acted on Thursday to curb inflation by raising interest rates, a move that analysts said could weigh on gold prices.