Mixed Trend In Base Metals On Weak Us Economic Data

The base metals complex traded on a mixed note on the LME in yesterday’s trading session, with copper, aluminium and zinc ending in the red while lead and nickel ended on a flat note. Weak economic data from the US and mixed sentiments in the global markets exerted pressure on metal prices.

However, sharp decline was not witnessed on the back of weakness in the US dollar. Depreciation in the Indian Rupee led gains on the domestic bourses and in case of aluminium sharp decline was cushioned.

Copper

Copper, the leader of the base metals pack, declined around 0.6 percent on the LME on Monday. Weak demand from China, mixed market sentiments and unfavorable economic data from the US acted as a negative factor for the red metal prices. However, sharp downside was cushioned due to a weaker dollar and continuously declining copper LME inventories.

Prices touched an intra-day low of $8398/tonne and closed at the level of $8447/tonne yesterday. On the MCX, Copper April contract rose around 0.1 percent due to a weaker Rupee and ended at Rs427.4/kg on Monday.

Crude Oil Slumps On China's Economic Concerns

Nymex crude oil prices declined around by 1 percent on Monday taking cues from rising concerns over slowdown in China’s economy and unfavorable economic data from the US.

However, further downside in prices was restricted on account of a weaker dollar. Oil touched an intra-day low of $105.38/bbl and closed at $106.3/bbl yesterday.

On the MCX, Crude oil March contract declined by 0.3 percent and closed at Rs.5332/bbl after touching an intra-day low of Rs.5287/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 2.2 million barrels for the week ending on 9th March 2012.

Gasoline stocks are expected to decline by 1.0 million barrels and distillate inventories are also expected to fall by 1.2 million barrels for the same week.

Precious Metals Weigh Down On Unfavorable Us Economic Data

Spot gold prices traded lower by 0.7 percent in yesterday’s trading session on the back of mixed sentiments in the global markets due to unfavorable economic data from the US.

However, sharp decline was cushioned on account of a weaker dollar. The yellow metal touched an intra-day low of $1691/oz and closed its trading session below the level of $1700/oz on Monday.

On the MCX, Gold April contract dropped slightly by 0.1 percent yesterday and sharp decline was resisted due to depreciation in the Indian Rupee.

The yellow metal touched an intra-day low of Rs27,902/10 gms and ended at the level of Rs27,972/10 gms on Monday.

Silver

Taking cues from fall in gold prices coupled with mixed performance in base metals complex, spot silver prices traded lower by 1.8 percent yesterday.

Additionally, mixed market sentiments also acted as a negative factor for prices. The white metal touched an intra-day low of $33.33/oz and closed at $33.6/oz on Monday.

MCX Silver May contract dropped around 1.4 percent in yesterday’s trading session and touched an intra-day low of Rs58,222/kg. The white metal ended its trading session at Rs.58,392/kg on Monday.