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

The base metals complex traded higher on the LME in Thursday’s trade session, with copper being the exception.

Soothing comment from the ECB official that they may go for the Securities Markets Programme facility to help the Spanish bond market-led rise in risk appetite in the global markets which supported upside in the base metals pack on Wednesday.

Additionally, weakness in the US Dollar Index also acted as a positive factor for metals. However, appreciation in the Indian rupee capped gains on the domestic bourses.

Copper

In case of copper, demand concerns from China for the red metal acted as a negative factor for copper prices on Wednesday. The metal dropped around by 0.4 percent on the LME and around 0.7 percent on the MCX Wednesday. However, further fall in prices was cushioned on the back of weakness in the US Dollar Index.

Copper touched an intra-day low of $ 8018/tonne and closed at $8046.80/tonne. On the MCX, Copper April contract hit an intra-day low of Rs. 415/kg and ended its trading session at Rs. 415.60/kg.

Precious Metals Edge Lower On Global Economic Concerns

Gold prices ended slightly lower by 0.2 percent on Wednesday and touched an intra-day low of $ 1652.94/oz. However, further decline was cushioned on account of weakness in the US Dollar Index.

The yellow metal closed its trading session at $ 1657.45/oz on Wednesday. On the MCX, Gold June contract traded on a flat note and touched an intra-day low of Rs. 28,541/10 gms on Wednesday.

Silver

Spot silver prices came under pressure and traded lower by 0.8 percent in Wednesday’s trading session, taking cues from fall in gold prices. However, further decline was cushioned due to a weaker Dollar Index and upside in the base metals pack on Wednesday.

The white metal touched an intra-day low of $ 31.35/oz and ended its trading session at $31.5/oz yesterday. MCX Silver May contract dropped around by 0.4 percent and touched an intra-day low of Rs. 55,851/kg on Wednesday.