Futures prices of crude oil, gold, and select base metals on the MCX platform, traded on the lower side last week, on a weak dollar supported by a slowing world economy.
Bullion prices fell and reacted at the higher levels on weak sentiments. The recent rally in bullion prices was overdone. Lower crude prices were also contributing to the decline in bullion prices.
Now, the focus of the markets is on the outcome of the FOMC meeting on January 31. Base metals futures continued to trade sluggish on exchange buoyed by US recessionary fears and a housing market slump that could suffer physical demand.
The active February 2008 copper contract was down 4% to trade at Rs 279.30 per kg. The volume was 15,487 tonne, down from 18,728 tonne. The open interest was 15,773 tonne, up from 14,762 tonne.
According to the Chinese Bureau of Statistics, the country had produced 3.1396 million tonne refined copper during the January-November 2007, up 18.5% from the corresponding period in 2006.
The active February 2008 natural gas contract was down 3% to trade at Rs 316.40 per mmbtu. The volume was 1.13 lakh mmbtu. The open interest was 2.50 lakh mmbtu.
Natural gas in the world market also fell after a government report showed that US inventories are probably ample for cold-weather heating needs.
Stockpiles slipped 59 billion cubic feet to 2.691 trillion cubic feet in the week ended January 11, according to an Energy Department report.
The active February 2008 crude oil contract was lower 3% to trade at Rs 3,534 per barrel. Total volume was higher at 6.23 lakh barrels from 3.15 lakh barrels, while total open interest was up at 9.71 lakh barrels from 4.69 lakh barrels.
Crude oil fell on concerns of falling retail sales in the biggest energy consumer that?s US, indicating a slowing world economy. US Federal Reserve chairman Ben S Bernanke said that the outlook for US growth in 2008 has worsened.
The active February 2008 gold contract was down by 3% at Rs 11,088 per 10 gram. Total volume was 17,784 kg, down from 29,247 kg over previous week. Total open interest was lower at 11,842 kg, from previous week?s 16,189 kg.