Copper Futures Are ExpecteS To Open - Aug 08 , 2008

MUMBAI: Copper futures are expected to open little changed on Friday on the back of soft demand outlook and rising stocks, an analyst said. The benchmark August copper on the Multi Commodity Exchange of India (MCX) closed on Thursday at 320.05 rupees.

It may open around 320 rupees per kg, one analyst said. Copper prices are expected to trade steady later in the day after gaining slightly on bargain hunting on Thursday ,the analyst added. August zinc closed at 74.45 rupees and lead for August delivery ended at 90.5 rupees per kg. Nickel prices are expected to trade strong on Friday.

August nickel closed at 793.7 rupees. Nickel prices gained more than 5 percent on Thursday on short covering and news of a deferred expansion plan from Australia's Minara Resources Ltd, the world's second largest nickel miner.

GOLD: India's gold futures are expected to open lower on the MCX on Friday, tracking foreign markets that tumbled to a seven-week low, losing some of its shine as an alternate investment after the dollar strengthened, an analyst said.

The benchmark October gold is expected to open below 12,000 rupees per 10 grams from its closing at 12,028 rupees the previous day, the analyst added. Silver futures are also seen falling on the back of gold. September silver is likely to open around 22,750 rupees per kg from its close at 22,817 rupees, the analyst said.

Copper Prices Fell 2 Percent On Friday - Aug 02 , 2008

Copper which is often used as a hedge against inflation saw a decline in the appeal as the industrial demand for the commodity slowed. The problems in US have been increasing day by day and this has lead to lack of demand from traders. Copper prices fell 2 percent on Friday as a flurry of economic data from the United States still pointed to a severe slowdown and investors worried about metals demand.

After the Federal Reserve stated that it was committed to take out the economy from slump, Dollar saw gains against the major currencies. The dollar experienced strength versus other majors. The greenback climbed to a three-week high against the British pound and also moved to a five-week best against the euro but returned its gains against the European currency.

Copper prices were on its all time highs on 2nd July 2008 when it pulled back. Participants have seen a correction of more than 10% in the prices since than, with the same closing the trading at $ 7900 per tonne on LME.

Inventories data piling up and this is pressurizing the prices. During the month of July inventories have jumped up by 22300 tonnes to 144650 tonnes a rise of 18%. Total cancelled warrants were 14975 tonnes on 31st July 2008 a rise of 131% in a month. Total cancelled warrants at the start of the month were 6475 tonnes.

MCX Copper is now trading at Rs 335 per kg almost unchanged from the last day. Supports for the contract are at 327 levels, Resistances for the contract are at 336 levels. The prices were hovering in the range of Rs 387 per kg on 2nd July from where it has dropped down 14 % so far.
Later Friday morning, the Institute for Supply Management released its report on activity in the manufacturing sector in the month of July, showing no change in business activity compared to the previous month. The ISM said that its purchasing manager’s index edged down to 50.0 in July from 50.2 in June, with 50 the reading that separates expansion and contraction. Economists had expected the index to fall to a reading of 49.2.

Copper Futures Are Expectes To Opening Dawn - Aug 01 , 2008

MUMBAI: Copper futures are expected to open slightly lower on the Multi Commodity Exchange of India Ltd (MCX) on Friday, tracking foreign markets where the metal remained nearly steady, an analyst said.
The benchmark August copper was seen opening around 343 rupees per kg. August copper closed at 343.55 rupees on Thursday up 0.35 per cent from the previous day.
Other base metals are expected to open nearly flat, the analyst added. August zinc closed on Thursday at 81.75 rupees per kg, while August lead closed on the MCX at 94.35 rupees per kg on Thursday, both higher than the previous day.

GOLD

Gold futures are expected to open lower on the MCX on Friday amid cautious trade ahead of key U.S. data that could offer fresh direction to the metal, an analyst said. The benchmark October is expected to open around 12,660 rupees per 10 grams. The October contract ended on Thursday at 12,688 rupees, higher from the previous session.

SILVER

September silver on the MCX is seen opening lower at around 24,670 rupees per kg following gold, from its close at 24,720 rupees.