II:Copper Gains On Optimisitc Views On Chinese Demand
Copper prices gained momentum back on optimistic views that demand of metals from China will continue. The strange factor to note was that even after a fall in all the cash indices like Dow Jones, Europe and Germany etc, commodities remained hanging on the gains. The prices of red metal was quite weak until the last session of trades where buying emerged.
Weaker Dollar also lured investors towards the non-ferrous metals space. Dollar was sideways against the EURO throughout the day untill the news of downgrade of GDP estimates came. Dollar settled at 1.4386 against the EURO, down 62 pips.
The fall in US stock markets on Friday was the resultant of downgarde by JP Morgan. The Dow Jones Industrials Average index lost 172.93 points, or 1.6%, to end at 10817.65, down 4% in the week.The research agency said that US markets were expected to grow at a slower pace in third quarter. The projection of fourth quarter was also downgarded sharply to 1% from 2.5% earlier.
Multi Commodity Exchange (MCX) Copper prices settled at Rs. 403.4 per kg, up 0.4%. The markets tested a low of Rs. 400.6 per kg, the markets tested a high of Rs. 406 per kg. COMEX Copper September expiry settled at $ 3.983 per pound on Friday.
