By Michael Bellart Source:Global Times Published: 2012-12-30 22:34:31
Chinese copper and gold futures made modest gains last week in a flat, but broadly positive period for the domestic and international commodities markets.
The most traded copper contract on the Shanghai Futures Exchange (SHFE) rose 0.23 percent Friday to finish the week up 1.59 percent at 57,680 yuan ($9,250) per ton. The contract was steady last week, accumulating small gains on each of the five days.
"Shanghai copper has been leading the gains this month thanks to renewed confidence after the leadership transition in Beijing," Chen Dixi, an analyst from Jinrui Futures, told Reuters.
The SHFE April contract performed better last week than the benchmark three-month copper contract on the London Metal Exchange (LME). The LME contract added 0.6 percent to finish at $7,893.50 per ton.
The global financial market continues to focus on the ongoing political battle in the US over a series of automatic budget cuts and tax raises set to take effect on January 1. No progress was made toward an agreement last week.
Copper held up better than some other commodities, said Stephen Briggs, an analyst for the French bank BNP Paribas.
"The single biggest reason is that it had perhaps become oversold compared with the other base metals," he told Reuters.
The LME contract lost 2 percent in the previous week.
Meanwhile, the most traded SHFE gold future added almost 1 percent for the week to close at 339.20 yuan per gram, or $1,692 per ounce.
The SHFE and other financial markets on the Chinese mainland will be closed Tuesday, Wednesday and Thursday for the New Year holiday.