Mixed Trend In Base Metals On US Economic Worries: April 17, 2012

The base metals complex ended higher on the LME on Monday mainly after favorable retail sales data from the US.

In addition to this, weakness in the US Dollar Index also acted as a supportive factor for the metal prices yesterday. However, further gains were capped due to mixed sentiments in the global markets.

Nickel

Nickel was the only metal to witness decline on the LME as well as on the MCX in yesterday’s trading session. The metal dropped sharply by 3.3 percent on the LME and around 3 percent on the MCX on Monday.

LME inventories of nickel rose 1 percent to 99,330 tonnes yesterday and this acted as a negative factor for the metal prices.

On the MCX, nickel April contract touched an intra-day low of Rs. 908.10/kg and closed its trading session at Rs. 916.7/kg yesterday.

However, rupee depreciation cushioned further losses on the domestic platform.

Precious Metals Settle Lower On US Retail Sales Data

Spot gold prices ended lower by 0.4 percent on Monday and touched an intra-day low of $1640.64/oz.

In the initial part of the trade, the yellow declined more than 1 percent due to mixed sentiments in the global markets. But in the later part of the trade, positive retail sales data from the US led gold to trim most of its earlier losses. Additionally, weakness in the US Dollar Index also cushioned further decline in metal prices.

The yellow metal closed its trading session at $ 1651.6/oz on Monday. MCX gold June contract declined slightly by 0.1 percent touching an intra-day low of Rs.28,441/10 gms and ended its trading session at Rs. 28,561/10 gms yesterday.

Silver

Silver traded slightly lower by 0.1 percent on the international markets on Monday, taking cues from fall in gold prices and mixed market sentiments.

However, further decline was cushioned on account of a weaker Dollar Index and upside in base metals pack yesterday.

The white metal touched an intra-day low of $31.16/oz and closed at $31.45/oz on Monday. MCX Silver May contract rose around 0.2 percent yesterday on account of depreciation in the Indian rupee.

MCX Silver touched an intra-day high of Rs56,199/kg and ended at Rs. 55,920/kg on Monday.