Copper, gold seen opening steady on Tuesday

Copper futures are likely to steady on Tuesday morning at their lowest level in three weeks, following similar trend in overseas market, analysts said.

* The most-active copper for November delivery on the Multi Commodity Exchange (MCX) last closed 2.3 per cent lower at 404.70 rupees per kg, after hitting a low of 403.25 rupees, a level last seen on Aug. 24.

* London copper was 0.07 per cent higher at $8,360 per tonne, but continued worries about a global economic slowdown are expected to limit gains.

* The rupee plays an important role in determining the landed cost of the red metal, which is quoted in dollars.

* The Indian rupee fell more than 0.8 per cent to its weakest level in two years, as worries over Europe’s debt crisis deepened after Standard & Poor’s cut Italy’s rating, dragging the euro and shares lower.

GOLD

Gold futures are likely to open steady on Tuesday morning following similar trend in overseas markets, and a weaker rupee could buoy prices later in the session, analysts said.

* The most-active gold for October delivery on the MCX last closed 0.23 per cent lower at 27,665 rupees per 10 grams.

* Global gold held steady, after Standard and Poor’s downgrade of Italy’s credit rating heightened worries about the euro zone debt crisis ahead of a key US Federal Reserve policy meeting.

* Investors are eager to learn if the US central bank will embark on more stimulus measures to spur economic growth, as policy makers meet on Tuesday and Wednesday. Another round of quantitative easing would likely buoy gold, as the prospect of cheap cash increases inflation outlook. – Reuters

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