Base Metals Settle Lower on Weak Industrial Demand

The base metals complex traded lower on the LME on  Monday  mainly on the back of rising concerns that a slower growth forecast  in China for this year may affect demand from the world's largest  consumer of the industrial metals.  

Additionally, increasing tensions over global economic growth  coupled with rise in risk aversion in the global markets also acted  as a negative factor for metal prices yesterday.

However, depreciation in the Indian Rupee cushioned sharp decline on the  domestic bourses on Monday.  

Nickel

Nickel was the worst performer of the day, as the metal prices  dropped sharply by 2.5 percent on the LME and around 1.6  percent on the MCX.

Rising demand concerns from China coupled  with weak market sentiments exerted downside pressure on metal  prices.

Nickel touched an intra-day low of $19,050/tonne and closed at  the level of $19,099/tonne on Monday.

MCX Nickel March  contract touched an intra-day low of Rs956.5/kg and ended at the level of Rs 958.9/kg yesterday.

Crude Oil Trades Higher On Global Supply Constraints

Nymex crude oil prices increased by 0.1 percent yesterday on the  back of meeting between US President Barack Obama and Israel’s  Prime Minister Benjamin Netanyahu on how to tackle  Iran for its  nuclear program.

Supply worries from Iran still persists which  supported oil prices.  Additionally, a weaker dollar also acted as a positive factor for the  commodity.

Oil prices touched an intra-day high of $107.4/bbl and  closed at $106.7/bbl yesterday.

On the MCX, prices  increased  around 1 percent on account of a weaker Rupee and closed at  Rs.5342/bbl after touching an intra-day high of Rs.5363/bbl on  Monday.

API Inventories Forecast  The American Petroleum Institute (API) is scheduled to release its  weekly inventories today and crude oil inventories are expected to  increase by 1.0 million barrels for the week ending on 2nd  March  2012.

Gasoline stocks are expected to decline by 1.9 million barrels  and distillate inventories are also expected to fall by 1.8 million  barrels for the same week. 

Precious Metals Edge Lower On Poor Global Economic Concerns

Spot gold prices declined around 0.3 percent in yesterday’s trading session on the back of weak sentiments in the markets due to rising  global economic growth concerns.

However, sharp decline was cushioned on account of a weaker dollar. The yellow touched an intraday low of $1694/oz and ended its trading session at the level of  $1706/oz on Monday.  

MCX Gold April contract declined slightly around 0.1 percent yesterday  as sharp downside was resisted due to depreciation in the Indian Rupee.  

Gold touched an intra-day low of Rs27,865/10 gms and ended at the  level of Rs27,948/10 gms on Monday.  

Silver

Spot silver prices traded lower by 2.2 percent on Monday, taking cues  from fall in gold prices coupled with downside in base metals.  

Additionally, weak market sentiments also acted as a negative factor for  the metal prices. The white metal touched an intra-day low of $33.50/oz  and ended at the level of $34/oz yesterday.  

On the MCX, Silver May contract declined around 1.8 percent on Monday  and touched an intra-day low of Rs56,810/kg. However, sharp decline  was cushioned on account of depreciation in the Indian Rupee.