Base Metals Settle Higher on Euro Debt Concerns

Revival in the global markets on the back of ECB’s step to pump huge amount of money into the financial system led base metals complex to trade higher on the LME on Thursday, with lead being an exception.

However, mixed economic data from the US capped sharp gains in metal prices yesterday.

Copper

Copper, the leader of the base metals pack, traded higher by 1.2 percent on the LME and more than 3 percent on the MCX on Thursday.

The red metal inventories on the LME warehouses dropped sharply by 1.4 percent to 292,250 tonnes which helped copper prices to trade higher yesterday.

The red metal touched an intra-day high of $8647/tonne and closed at the level of $8628/tonne on Thursday.

On the MCX, Copper April contract hit as intra-day high of Rs432.20/kg and ended its trading session at the level of Rs 430.80/kg yesterday.

Crude oil trades up on global supply fears

Nymex crude oil prices increased sharply by 1.7 percent yesterday taking cues from rumors of pipeline explosion in Saudi Arabia which increased supply fears for the commodity.

However, further upside in prices was restricted on account of a stronger dollar.

Oil prices touched an intra-day high of $108.82/bbl and closed at $108.8/bbl yesterday.

On the MCX, prices increased by 2 percent and closed at Rs.5334/bbl after touching an intra-day high of Rs.5349/bbl on Thursday.

Natural Gas

Nymex natural gas prices declined by 4.5 percent on Thursday on the back of less than expected decline in US natural gas inventories coupled with mild weather forecasts.

Additionally, a stronger dollar also led to further downside pressure in prices. Natural gas touched an intra-day low of $2.444/mmbtu and closed at $2.476/mmbtu yesterday.

On the MCX, prices declined by 4.5 percent and closed at Rs.122.9/mmbtu after touching an intra-day low of Rs.121.7/mmbtu on Thursday.

EIA Inventories

US Energy Information Administration (EIA) released its weekly inventories yesterday and natural gas inventories declined less than expected by 82 billion cubic feet (bcf) and stood at 2.513 trillion cubic feet for the week ending on 24th February 2012.

Precious metals edge higher on global economic concerns

Spot gold prices rose around 1.3 percent in yesterday’s trading session as buying at lower levels were observed after a sharp fall in the previous trading session.

Additionally, ECB’s step to inject liquidity into the financial system led to rise in risk appetite in the global markets which also acted as a positive factor for prices on Thursday.

Gold hit an intra-day high of $1725/oz and ended its trading session at the level of $1715/ yesterday.

On the MCX, Gold April contract declined slightly by 0.1 percent on Thursday and touched an intra-day low of Rs27,730/10 gms.

Silver

Spot silver prices surged sharply by 2.5 percent on Thursday, mainly taking cues from rise in gold prices coupled with upbeat sentiments in the global markers.

Silver being an industrial metal also took cues from upside in base metals yesterday. The white metal hit an intra-day high of $35.62/oz and ended its trading session at the level of $35.4/oz on Thursday.

MCX Silver May contract rose around 1 percent and touched an intra-day high of Rs58,771/kg yesterday.