Base Metals Settle Higher On Global Economic Concerns

The base metals complex traded higher on the LME on Monday on account of positive German business climate data.

In the later part of the day, Fed’s chairman statement to keep interest rates low in turn fueled expectations that the US central bank may inject more money into the economy to accelerate the economic growth of the US.

These factors led to a rise in risk appetite in the global markets which supported upside in the base metal prices yesterday.

Weakness in the US dollar index also acted as a positive factor for metals pack.

Weak pending home sales data from the US capped sharp gains in base metal prices on Monday.

Copper

Copper, the leader of the base metals pack, rose sharply by more than 2 percent on the LME in yesterday’s trading session mainly on account of positive euro zone sentiments coupled with comments from Fed’s chairman.

Additionally, weakness in the US dollar index and continuously falling LME inventories in copper buoyed the prices on the upside.

The red metal touched an intra-day high of $8568.50/tonne and closed at the level of $8568/tonne on Monday. On the MCX, Copper April contract rose around 1.9 percent and touched an intra-day high of Rs440.40/kg yesterday.

Crude Oil Trades Higher On Positive Global Cues

Nymex crude oil prices traded higher by 0.2 percent yesterday after Fed’s chairman statement which increased expectations that US central banks might go for another round of quantitative easing to accelerate the economic growth in the world’s largest economy.

Additionally, a weaker Dollar Index (DX) also acted as a supportive factor for the commodity.

Oil prices touched an intra-day high of $107.32/bbl and closed at $107/bbl in yesterday’s trading session. On the MCX, crude oil prices declined by 0.3 percent and closed at Rs.5,480/bbl after touching an intra-day low of Rs.5,463/bbl on Monday.

API Inventories Forecast

The American Petroleum Institute (API) is scheduled to release its weekly inventories today at 8 pm IST. US crude oil inventories are expected to increase by 2.8 million barrels for the week ending on 23rd March 2012.

Gasoline stocks are expected to decline by 1.6 million barrels and distillate inventories are expected to remain unchanged for the same week.

Precious Metals Edge Higher On Weak US Dollar

Spot gold prices rose sharply by around 1.7 percent in yesterday’s trading session on the back of weakness in the US Dollar Index coupled with revival in the risk sentiments in global markets.

The yellow metal touched an intra-day high of $1693/oz and closed its trading session at $1689/oz yesterday.

On the MCX, Gold April contract rose almost 1 percent on Monday. MCX gold touched an intra-day high of Rs28,396/10 gms and closed at the level of Rs28,367/10 gms yesterday.

Silver

Taking cues from rise in gold prices coupled with upside in base metals pack, spot silver prices rose around 2 percent on Monday. In addition to this, weakness in the US Dollar Index, upbeat market sentiments acted as a positive factor for the white metal prices yesterday.

Silver touched an intra-day high of $32.92/oz and closed its trading session at $32.82/oz on Monday. On the MCX, Silver May contract rose around 0.9 percent and touched an intra-day high of Rs57,930/kg before closing at Rs57,731/kg yesterday.