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India copper futures seen flat; gold may open higher.


Date: 11-12-2009
Subject: India copper futures seen flat; gold may open higher
MUMBAI, Dec 11 (Reuters) - India copper futures may open flat on Friday as pressure from a strong rupee is likely to be offset by rising Chinese imports of the red metal and a jump in their industrial output growth, analysts said.

The most-traded February contract MCCG0 on the Multi Commodity Exchange of India (MCX) ended 0.7 percent lower at 319.80 rupees per kg.

The February copper may open at 319.50-320 rupees, said Murukesh Kumar, an analyst with JRG Wealth Management.

"Rising Chinese imports would help copper, while, rupee, which is strong would pressure red metal," said Kumar.

China's November imports of unwrought copper and semi-finished copper products rose by a surprise 10 percent from the previous month despite abundant domestic supplies and high import costs in the world's biggest copper market, customs data showed on Friday. See 

Chinese industrial output growth in November jumped to its strongest since June 2007, underlining the economy's brisk recovery from the global downturn in response to massive fiscal and monetary stimulus.

The Indian rupee rose on expectations of foreigners bringing in more funds into local stocks, after stronger Asian share markets boosted regional currencies. [INR/] A strong rupee makes the dollar-quoted asset cheaper.

There could be a bounce back in copper to 323/324.50 rupees," said Kunal Shah of Nirmal Bang Commodities.

The December zinc contract MZIZ9 closed 0.9 percent lower at 105.55 rupees per kg, while lead for December delivery MLDZ9 ended 0.05 percent higher at 105.65 rupees per kg in the previous session.

GOLD:

India's gold futures are expected to open higher on Friday on bargain-hunting after the yellow metal lost 6.1 percent in the previous six sessions, and on a steady dollar, analysts said.

The benchmark February gold MAUG0 on the Multi Commodity Exchange (MCX) last closed 0.06 percent lower at 17,078 rupees per 10 grams in the previous session.

February gold is likely to open at 17,100-17,120 rupees per 10 grams, said Aurobinda Prasad, head of research, Karvy Comtrade.

The dollar .DXY was steady against major currencies on Friday. [USD/]

Gold is likely to trade in the range of 17,000-17,200 rupees, said Prasad.

Source : REUTERS

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