Base Metals Trade On Mixed Trend, Lead Gains On Economic Concerns

The base metals pack traded on a mixed note on the LME in yesterdays’ trading session with aluminium and nickel ending in the red while copper, lead and zinc managed to end in the green.

Strength in the US dollar coupled with choppy sentiments in the global markets due to rising uncertainty over Greece debt worries exerted pressure on metal prices.

However, favorable pending home sales data from the US cushioned sharp fall in case of aluminium and nickel. Depreciation in the Indian Rupee led gains on the domestic platform on Monday.

Lead

Lead prices rose sharply by 1.7 percent on the LME on Monday on the back of continuously falling metal inventories. Lead inventories on the LME warehouses dropped around 0.7 percent to 368,175 tonnes on Monday and on a week-on-week basis inventories dropped sharply by 2.6 percent.

On the MCX, Lead February contract rose almost 2 percent on account of a weaker Rupee and hit an intra-day high of Rs109.10/kg yesterday.

Crude Oil To Edge Lower On Euro Debt Concerns

Nymex crude oil prices declined more than 1 percent yesterday on the back of expectations that rising crude oil prices will curb the demand for the commodity.

Additionally, a stronger dollar and European debt concerns also acted as a negative factor.

Oil prices touched an intra-day low of $107.27/bbl and closed at $108.6/bbl yesterday. On the MCX, crude oil prices increased by 0.3 percent and closed at Rs.5386/bbl after touching an intra-day high of Rs.5407/bbl on Monday.

API Inventories Forecast

The American Petroleum Institute (API) is scheduled to release its weekly inventories today and US crude oil inventories are expected to increase by 1.4 million barrels for the week ending on 24th February 2012.

Gasoline stocks are expected to rise by 0.8 million barrels and distillate inventories are also expected to shoot up by 0.1 million barrels for the same week.

Precious Metals Under Pressure On Strong Us Dollar

Spot gold prices came under pressure and traded lower by 0.4 percent in yesterday’s trading session on the back of a stronger dollar.

Additionally, fall in crude oil prices also affected inflationled demand for gold on Monday.

The yellow metal touched an intra-day low of $1761/oz and closed at the level of $1765/ yesterday.

On the MCX, Gold April contract gained around 0.2 percent on account of depreciation in the Indian Rupee and touched an intra-day high of Rs28,828/10gms on Monday.

Silver

Taking cues from fall in gold prices coupled with strength in the US dollar, spot silver prices witnessed a fall of around 0.1 percent on Monday.

The white metal touched an intra-day low of $35.03/oz yesterday and closed at the level of $35.4/oz.

On the MCX Silver March contract rose around 0.5 percent and touched an intra-day high of Rs58,850/kg on Monday.