Base Metals Edge Higher on Global Economic Concerns

The base metals complex traded higher on the LME on Monday with lead being an exception. Weakness in the US dollar coupled with easing concerns with respect to Euro Zone debt worries supported upside in the metal prices. However, mixed market sentiments capped sharp gains in yesterday’s trading session.

Copper

Copper, the leader of the base metals pack, gained around 0.7 percent on the LME by 0.6 percent on the MCX. Factors that influenced the red metal prices are weakness in the dollar, continuous decline in copper inventories on the LME warehouses and easing worries over Euro Zone debt worries.

The red metal touched an intra-day high of $8613/tonne and closed its trading session at the level of $8584/tonne on Monday.

On the MCX, copper April contract hit an intra-day high of Rs435.80/kg and closed at the level of Rs434.9/kg yesterday.

Crude Oil Rises On Us Economic Concerns

Nymex crude oil increased sharply by 1 percent on Monday taking cues from rising expectation that US economic will recover which will increase the demand for the commodity. Additionally, a weaker dollar also acted as positive factor for oil prices.

Crude oil touched an intra-day high of $108.24/bbl and closed at $108.1/bbl in yesterday’s trading session. On the MCX, crude oil April contract increased by 1.4 percent on account of a weaker Rupee and closed at Rs.5408/bbl after touching an intra-day high of Rs.5418/bbl on Monday.

API Inventories Forecast

The American Petroleum Institute (API) is scheduled to release its weekly inventories today and US crude oil inventories are expected to increase by 2.4 million barrels for the week ending on 16th March 2012.

Gasoline stocks are expected to decline by 2.1 million barrels and distillate inventories are also expected to fall by 1.1 million barrels for the same week.

Precious Metals Gain On Weak Us Dollar

Spot gold prices rose around 0.2 percent on Monday on the back of weakness in the US dollar, as a weaker dollar makes dollar-denominated commodities look attractive for the holders of the other currencies.

Additionally, rise in crude oil prices also boosted the inflation led demand for gold yesterday.

The yellow metal touched an intra-day high of $1669/oz and closed its trading session at the level of $1662/oz on Monday. On the MCX, Gold April contract rose around 0.3 percent on account of a weaker Rupee and hit an intra-day high of Rs27,974/10 gms yesterday.

Silver

Taking cues from rise in gold prices coupled with weakness in the US dollar, spot silver traded higher by 1 percent in yesterday’s trading session. Additionally, upside in base metals pack also acted as a supportive factor for the commodity on Monday.

The white metal hit an intra-day high of $ 33.06/oz and closed at the level of $32.9/oz yesterday. On the MCX, Silver May contract gained around 0.4 percent and touched an intra-day high of Rs57,750/kg on Monday.