Except copper, major active traded commodities such as gold, silver, nickel, and crude oil futures on the MCX platform reacted at the higher level on the week ended on Friday, on some profit booking coupled with weak overseas markets. Gold and crude oil prices in the international markets touched recent new high levels, while copper continued its rally with sustained buying support.
Silver futures fell sharply by nearly 2.2% on the domestic futures markets following a sharp decline in the London market, while nickel futures weakened further following weak overseas markets supported by higher LME stocks.
Gold and crude oil futures prices reacted at the peak levels on lack of buying support with weak overseas markets. In London, gold and crude oil prices rebounded from three days of declines on Thursday, as the dollar resumed its slide against the euro and other major world currencies. On the other hand, copper futures remained firm last week on steady buying support amid a tight London market. Copper prices in London surged above $8250 a tonne on speculative buying and dollar weakness. The active November copper contract was up Rs 3.50 to trade at Rs. 322.50 per kg. The Open Interest was up at 13,594 tonne.
?MCX copper had rallied and tested Rs 327 levels on the charts. Markets are likely to consolidate with a bearish bias and prices are likely to test Rs 315 levels,? an analyst said.
International Copper Study Group (ICSG) had stated in its latest report that the global copper market will be in surplus by 1.10 lakh tonne in 2007.
ICSG had projected world copper usage to increase by 5.2% to 18 million tonne in 2007, anticipating a strong growth in apparent refined usage in China along with India and Russia.
On the other hand, the active October nickel contract was down Rs 10 to trade at Rs 1,209.80 per kg on rising inventories in London and stocks in the LME warehouses stood at 35,250 tonne. The active October gold contract was lower to trade at Rs 9,465 per 10 gram.