Base Metals Settle Higher On Weak US Dollar Index: April 15, 2012

The base metals pack traded higher on the LME in Thursday’s trading session as signs that the Federal Reserve and Bank of Japan will go for monetary stimulus in order to boost growth, which resulted in weakness in the US Dollar Index and upbeat sentiment in the global market.

This also overshadowed a negative impact of an unexpected rise in US unemployment claims data. However, appreciation in the Indian rupee held further gains on the domestic bourses on Thursday.

Copper

Copper, the leader of the base metals complex, rose by 2 percent on the LME and around 1.4 percent on the MCX on Thursday.

The red metal prices gained on the back of a weaker Dollar Index, and a fall in copper inventories and upbeat market sentiments. The red metal hit an intra-day high of $8238/tonne and ended at $8210/tonne.

MCX Copper April contract touched an intra-day high of Rs. 423.10/kg and closed at Rs. 421.5/kg yesterday.

Precious Metals Edge Higher Tracking Global Cues

Weakness in the US dollar index coupled with upbeat sentiments in the global markets led spot gold prices to trade higher by more than 1 percent on Thursday.

The yellow metal hit an intra-day high of $1679.70/oz and closed its trading session at $1674.98/oz yesterday.

On the MCX, Gold June contract gained around 0.5 percent as further gains were capped due to appreciation in the Indian rupee and touched an intra-day high of Rs. 28,774/10 gms on Thursday.

Silver

Taking cues from a rise in gold prices along with an upside in base metals, spot silver prices surged by 2.4 percent on Thursday.

Additionally, weakness in the US Dollar Index and rise in risk appetite in the global markets also acted as a positive factor for the white metal prices yesterday. Silver touched an intra-day high of $32.56/oz and closed at $32.28/oz on Thursday.

On the MCX, Silver May contract rose around 1.7 percent and hit an intra-day high of Rs. 57,197/kg yesterday.

Mentha Oil Sheds On Selling Pressure

Mentha oil futures prices extended the volatility on heavy speculative activities during Thursday’s trading session.

From opening of the session, futures started trading on a flat to positive note on lower-level buying. However, prices remained very volatile during the day and later on, turned down on fresh selling on gains.

Reports of rising sowing progress along with concerns regarding rains are creating uncertainty in prices.