Base Metals Edge Higher On US Manufacturing Data

The base metals complex traded higher on the LME in yesterday’s trading session on the back of revival in the US markets after the positive ISM manufacturing PMI data from the US.

Additionally, weakness in the US Dollar Index also acted as a further supportive factor for the metal prices on Monday.

Copper

Copper, the leader of the base metals pack, rose by 2.3 percent on the LME and around 1.8 percent on the MCX on Monday.

Weakness in the US dollar, favorable economic data from the US, and revival in the US markets helped upside in the red metal prices.

Copper touched an intra-day high of $8653/tonne and closed at $8620.75/tonne yesterday. On the MCX, Copper April contract hit an intra-day high of Rs. 440.20/kg and ended its trading session at Rs. 439.10/kg on Monday.

Crude Oil Settles Higher On Weak US Dollar

Nymex crude oil prices increased by more than 2 percent on Monday on the back of positive economic data from the US which increased more than expected. Additionally, a weaker dollar also helped upside in oil prices.

Crude oil prices touched an intra-day high of $105.49/bbl and closed at $105.2/bbl in yesterday’s trading session.

On the MCX, oil prices increased by 0.6 percent and closed at Rs.5,335/bbl after touching an intra-day high of Rs.5,353/bbl on Monday.

API Inventories Forecast
 
The American Petroleum Institute (API) is scheduled to release its weekly inventories today at 8:00pm IST and US crude oil inventories are expected to increase by 2.1 million barrels for the week ending on 30th March 2012.

Gasoline stocks are expected to decline by 1.2 million barrels and distillate inventories are also expected to drop by 0.3 million barrels for the same week.

Precious Metals Surges On Global Economic Concerns

Spot gold prices rose around 0.5 percent on Monday on the back of upbeat sentiments in the US markets after the favorable ISM manufacturing data from the country.

Moreover, weakness in the US dollar also supported gold prices. Additionally, rise in crude oil prices boosted the inflation-led demand for gold yesterday.

The yellow metal touched an intra-day high of $1683.30/oz and closed at $1676.10/oz on Monday. MCX Gold June contract traded lower by 0.9 percent and touched an intra-day low of Rs. 27,845/10 gms yesterday.

Silver

Spot silver prices gained sharply by more than 2 percent in yesterday’s trading session mainly taking cues from rise in gold prices coupled with weakness in the US dollar index.

Silver being an industrial also took cues from upside in base metals pack on Monday.

The white metal touched an intra-day high of $33.05/oz and closed its trading session at $32.96/oz yesterday.

On the MCX, Silver May contract rose around 1.2 percent and closed at Rs. 57,595/kg on Monday.