Bullion hovered in the range, recovering some of its earlier losses, with weakness in equities providing some support as the metal consolidated after the last session's gains. Spot gold did not show much movement however MCX gold demonstrated movement of around Rs.150 due to USDINR movement. These days the main driver of Indian gold prices is the USDINR movement. Demand for gold from jewellery buyers in traditionally strong markets such as India and China remained weak, however. Scrap sales are also putting pressure on premiums for gold bars, dealers said. The expectations of release of stimulus package in USA may enhance the US economy thus driving gold prices to lower levels.
Crude Oil price inched up to top $47 a barrel, as investors expected OPEC will cut output at its production meeting this month. OPEC Secretary General Abdullah al-Badri said on Monday the 12-member producer group would consider reducing output again at its March 15 meeting as it tries to counter downward pressure on oil prices from falling demand. Early Friday, crude futures pared gains from overnight trading when the government reported the unemployment data. Heating oil futures led the day's gainers. However Russia's pipeline monopoly Transneft will restart oil supplies to the Black Sea ports of Novorossiisk and Tuapse on Friday night or early on Saturday.
Base metals slipped on expectations of weakening demand and rising stockpiles in China. Copper inventories monitored by the LME shrank 0.6 percent to 518,700 tonnes today. However, apart from China buying there is currently no reason which may provide support to the base metal prices. It is expected demand for raw materials will weaken after the World Bank said the global economy will shrink for the first time since World War II. Last week, Shanghai stockpiles of the metal increased 36 percent to 38,468 tons, the most since July. LME aluminum for three-month delivery fell $4, or 0.3 percent, to $1,306 a ton and lead declined 0.3 percent to $1,219.75 a ton. Tin fell 2.2 percent to $11,000 a ton, zinc lost 1.6 percent to $1,210 a ton, and nickel slipped 1 percent to $9,750.
