MUMBAI: Commodity futures started today’s session on a weak note amidst gloomy outlook on macro economy front emanating from leading economy of the world.
While trade data slated for release later today, China GDP numbers scheduled to be released on April 15 will catch market attention. These macro indicators will have larger bearing on commodity prices.
Analysts worry that a strong round of numbers, particularly from may derail the commodities juggernaut by forcing authorities to act more quickly and more vigorously to cool growth rates and stem inflation.
We have already seen markets reeling under pressure for now. Nymex crude oil futures eased below $84 a barrel, falling for the fifth straight day, ahead of data due later in the day that is expected to show a build in crude stockpiles.
NYMEX crude for May delivery was down 22 cents at $84.12 a barrel, after settling down 58 cents on Monday as questions about the strength of oil demand outweighed support from strong Chinese crude imports and a weak US dollar.
US crude oil inventories likely rose last week for the 11th week in a row, on higher imports, analyst forecast ahead of weekly inventory reports showed on Monday.
The American Petroleum Institute (API), an industry group, will release its weekly stockpile data later on Tuesday, while the US Energy Information Administration, a government organisation, will release its report on Wednesday.
Precious metal counters too wilted under selling pressure as the recent rally provided way for profit taking. Spot gold was little changed on Tuesday after a round of physical selling pulled down the precious metal from a four-month high the previous day. Spot gold stood at $1,152.80 per ounce compared with New York’s notional close of $1,155.00.
On Monday, gold rose as high as $1,168.70 an ounce, its highest since December 4, initially helped by a rally in the euro against the US dollar. But it later eased as physical demand for the precious metal failed to follow suit. Gold prices have recently been supported by investors fleeing to safety amid lingering concerns about Europe's financial stability, symbolised by debt crisis.
US gold futures for June delivery fell 0.6% to $1,155.50 per ounce compared with Monday's settlement of $1,162.20 on the COMEX division of the New York Mercantile Exchange.
The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings totaled 1,141.04 tonnes as of April 12, unchanged from an all-time high marked the previous business day.
Silver edged up to $18.21. It hit a three-month high of $18.58 on Monday.
Base metal counters have also witnessed selling pressure. London copper futures fell more than half a percent on Tuesday, extending losses after the market failed to hold on to a rally to a 20-month peak in the previous session on worries that growth in prices have outpaced demand.
Three-month copper on the London Metal Exchange (LME) fell $50 early on Monday to $7,855. The contract last stood at $7,830 a tonne, down $25. Robust import figures from , the world's top metals consumer, sent copper to a 20-month high of $8,043.75 on Monday.
Aluminum fell $10 to $2,407, but the lightweight metal was back in the limelight after UC RUSAL confirmed plans first reported in September that it wanted to launch a physically backed exchange traded fund.
Domestic commodity counters begin the session on a week note. The rupee declining advance against the US dollar helped arrest price decline. MCX crude oil futures for April settlement moved between Rs 3,764 and Rs 3,750 before retracing to current level of Rs 3,755 per barrel.
Precious metal counters too seen losing shine in early trades. MCX Gold for June settlement contract last quoted at Rs 16,848 per 10 grams after moving between Rs 16,887 and Rs 16,836 per 10 gram.
MCX Silver May settlement contract traded 0.8% lower at Rs 27,630 per kg, after having opened the session at Rs 27,805.
Base metal counters trended marginally higher, thanks to weaker rupee.
MCX copper for April settlement was last quoting 0.3% higher at Rs 350.75 per kg, after opening the session at Rs 350.10. MCX zinc April contract lost 0.9% to trade at Rs 105.55 per kg.
