Wednesday, July 8, 2009

India copper, gold futures set to open up

India's copper futures may open higher on Thursday tracking gains in London, but economic and demand concerns could weigh on the red metal later in the session, analysts said.

The most-traded August contract MCCQ9 on the Multi Commodity Exchange of India (MCX) ended 2.1 percent lower at 236.15 rupees in the previous session.

At 8:50 a.m., three month London copper was 1.76 percent higher at $4,829.75 a tonne on a weak dollar, after falling to $4,710 in the previous session, its lowest level since June 23.

MCX August copper may open at 238 rupees per kg, said Abhishek Chauhan, a technical analyst with Angel Commodities. "Resistance is pegged at 241 (rupees)."

"The strategy is to sell on rise on continuing demand woes. Selling is recommended at 238.50 rupees with a target of 234.50/232 rupees," said Kunal Shah, assistant vice-president with Nirmal Bang Commodities.

The July zinc contract MZIN9 ended at 74.20 rupees per kg, while lead for July delivery MLDN9 ended at 78.35 rupees per kg in the previous session.

GOLD:

India's gold futures may open slightly higher supported by a weak dollar and recovering crude, analysts said.

The benchmark August gold MAUQ9 closed 0.7 percent lower at 14,496 rupees in the previous session. The contract is likely to open at 14,535 rupees per 10 grams, said Aurobinda Prasad, deputy manager-research, Karvy Comtrade. "Gold would trade sideways and may be in the range of 14,400-14,590 rupees.