Metals decline on weak dollar

Mumbai, Apr 29 | Updated: Apr 30 2007, 08:12am hrs
Futures prices of precious metals mainly gold and silver and major base-metals include copper and nickel on the MCX platform fell sharply by nearly 4-5% in the week ended on Friday following weak global markets as major international investors switched over to equities from commodities as dollar weakens.

Gold normally moves in tandem with crude oil and in the opposite direction of the dollar. Copper and nickel prices weakened as Chinese supply increases. The active June expiry gold contract was traded Rs 371 lower at Rs 9,115 per 10 gram on Friday. The open interest in the contract was up 1,453 kg to 10,400 kg. London gold price fell $18 to trade at $672.85 an ounce.

The active May expiry silver contract was down Rs 1,060 to trade at Rs 18,353 per kg on Friday. The open interest in the May expiry contract was down from 400,290 kg on Monday to 299,550 kg on Friday. Silver in London was traded at $13.28 an ounce on Friday. The active April expiry copper contract was Rs 24 down at Rs 320 per kg on Friday over Monday on increased offerings by local operators supported by weak LME trend. On the London market, copper was $400 lower to trade at $7,610 a tonne on increased supply.