MUMBAI: The global financial markets continue to linger in negative zone providing little scope for commodity traders to indulge in buying activity. Meanwhile, in an effort to restore confidence in the country's financial condition, the Hungarian government has vowed to cut spending to avoid Greece-like debt crisis.
Nymex crude oil for July delivery was up marginally (45 cents) at $71.89 per barrel after settling down seven cents yesterday. US crude oil price has declined more than 18% since hitting a 19-month high above $87 per barrel in early May.
According to a survey, oil inventories are likely to show a decline of 900,000 barrel last week as US took fewer imports. Meanwhile, distillate stocks are seen up.
Gold edged lower in early Asian trades after rising 2% to just below a lifetime high the previous day as investors sought safe haven from volatile currencies, falling stock markets and euro zone credit contagion fears.
Spot gold was at $1,239.55 an ounce, up 90 cents from New York's notional close on Monday when it hit an intra-day high of $1,244.35 an ounce - not far from the record high of $1,248.95 struck in mid-May.
Domestic commodity futures are currently witnessing a mixed trend amid positive undertone. The recent slide in prices has provided buying opportunity at lower levels in some counters.
MCX gold for June settlement was quoted 0.1% lower at Rs 18,946 after scaling a fresh high of Rs 18,979 per 10 gram. MCX silver for July settlement was traded 0.2% higher at Rs 29,217 per kg.
