Base metals witnessed sharpest weekly gain in a month, after an unexpected surge in U. S. housing data suggested a key sector of the country's economy was stabilizing and that prompted fresh buying on the back of improvement in risk appetite.

Copper prices climbed to a five-week high on MCX on Friday. Zinc and lead both rose more than 5 percent, tracking gains in copper on MCX.

China's production of refined copper rose 1.1 percent on the year to 335,000 tonnes in June, the National Bureau of Statistics said on Friday. Primary aluminium production fell 5.7 percent on the year to 1.05 million tonnes. China is the world's top producer of aluminium, and the biggest consumer of copper and aluminium.

The U. S. Commerce Department said new housing starts and permits rose 3.6 percent in June, suggesting the battered housing sector was beginning to stabilize.

China's production of refined zinc rose to 366,700 tonnes in June versus May's 335,500 tonnes, given increased supply of concentrate to feed smelters' restarting of idled and new capacity, including Zhuzhou Smelter's new 100,000-tonne-peryear facility.

Base metals continue to look strong as weaker dollar and rebound in global production may support the prices further. Copper, lead and Aluminum are likely to move up during the day.