Tin futures on the MCX platform rose sharply following strong international markets amid local speculative buying support. April futures prices touched a new high and crossed the Rs 800-mark. Crude oil futures on Thursday breached the $110-mark and slid marginally on some partial selling. MCX crude oil April futures forged ahead with increased volume. Gold futures remained steady with limited buying interest.
The April 2008 crude oil contract was higher by 4% to trade at Rs 4,370 per barrel, up by Rs 173 over the previous week. Total volume was 5 lakh barrels, while open interest was around 7 lakh barrels. Crude oil declined from a record on concern that prices have risen too high and too fast at a time of rising inventories and expectations that energy demand may weaken in the US. The weak dollar has been driving the market in the last couple of weeks. NYMEX Crude oil for April delivery fell 1% to $109.39 a barrel on Friday.
The active April 2008 tin contract was traded higher at Rs 834.75 per kg, up by nearly Rs 62 or 8% over the previous week. The volume was 161 tonne and open interest was 127.5 tonne. London tin price extended recent gains to hit a record high above $20,000 per tonne on Thursday. A tightly supplied market and strong buying from China are supporting prices, but investors fear that a recession in the US may lead to a drop in demand.
The active April 2008 gold contract was up nearly 1% at Rs 12,900 per 10 gram. Total volume was 21,954 kg, up from 18,901 kg. Open interest was higher at 9,698 kg from previous week?s 8,865 kg. The yellow metal hit an all-time high of $1,000 an ounce in the US.