MUMBAI: Commodity counters traded tentative this morning as recent gains provided way for profit taking. However, the decline in prices was checked by softer US dollar and strong economic data. The recent slew of data was suitable to industrial metals.
Apparently, we saw nickel, copper price scaling to fresh multi-month highs. Markets will be tentative in today’s session as we head to holiday-shortened week-end.
US crude oil futures inched down towards $83 a barrel; giving back some of their gains from the previous day when a rising euro helped prices settle at their highest close in almost 1-½ years.
NYMEX crude for May delivery was down 12 cents at $83.64 a barrel, after rising $1.39 to settle at $83.76 on Wednesday, the highest settlement since October 9, 2008, as the euro's gain against the US dollar helped to offset large-than-expected builds in US crude and gasoline stockpiles.
For the first quarter of 2010, US crude futures finished up $4.40, from the end of 2009. It was the fifth consecutive quarterly gain for crude futures.
On Wednesday, a report from the US Energy Information Administration showed US crude oil stocks rose by 2.9 million barrels to 354.2 million barrels last week. The increase topped the forecast for a rise of 2.4 million barrels, while gasoline inventories logged a modest but surprise gain.
Gold hit its highest in more than a week on Wednesday as the US dollar slipped against major currencies and longer-term fears over sovereign debt put a floor under prices. However, gold prices have slid lower in today’s session so far.
Spot gold was at $1,111.95 a troy ounce from $1,102.50 an ounce late in New York on Wednesday, having earlier hit $1,117.90, its highest since March 19.
While heading for its sixth consecutive quarter of gains, gold was still about 10% below a record high around $1,226 struck in December and hovered below the 100-day moving average.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at 1,129.82 tonnes as of March 30, unchanged from the previous day, about 5 tonnes below a record high of 1,134.03 tonnes on June 1, 2009.
Base metal counters witnessed fresh buying interest prompted by strong economic data and softer US dollar. Also, the hopes of fresh fund infusion in Q2 from fund managers buoyed risk appetite resulting into higher demand for metal counters.
Nickel price touched 22-month high on Wednesday. The price of nickel, a key ingredient of stainless steel making, touched $25,085 a tonne, its highest since May 2008, and was at $25,130 a tonne. Copper traded at $7,855.00 a tonne after falling to $7,759 a tonne earlier.
Lead traded at $2,175 from $2,135, while aluminum rose to $2,343 a tonne, its highest since Jan 14 and was last at $2,335 a tonne versus $2,294. Zinc hit a fresh three-week high at $2,408.50 a tonne.
Tin touched $18,565 a tonne, its highest since September 2008, and was last traded at $18,350 a tonne versus $18,370.
Domestic commodity counters extended gains. Also, lack of currency cues – domestic currency markets are closed today – forced domestic markets to rely on overseas market trend.
MCX crude oil futures for April settlement moved between Rs 3,760 and Rs 3,744 before retracing to current level of Rs 3,759 per barrel.
MCX Gold for April settlement contract last quoted at Rs 16,279 per 10 grams after moving between Rs 16,290 and Rs 16,262 per 10 gram. MCX Silver May settlement contract traded flat at Rs 26,939 per kg, after having opened the session at Rs 26,905.
Base metal counters looked up helped by strong cues from overseas markets. MCX copper for April settlement was last quoting at Rs 353.70 per kg, after opening the session at Rs 353.40. MCX zinc March contract added 1% to trade at Rs 107.05 per kg.
