MUMBAI: US manufacturing numbers indicating at economic recovery steel in tact, failed power commodity futures into the positive zone. It seems that the week-end trading session is keeping traders and speculators at distance.
A possible winding down of position is also having negative influence on the prices. Meanwhile, the US dollar held steady against euro but the fragile global economic recovery encouraged investors to look refuge in yen and not in commodities. Apparently, commodity counters traded softer in today’s session.
Crude oil prices hover near $76.50 a barrel mark, after the government forecaster raised chances of a tropical cyclone developing in the Caribbean that could hit Gulf of Mexico production. Asian equities fell on economic worries putting pressure on crude prices.
West Texas Intermediate for August delivery added 11 cents to $76.62 a barrel after posting a 16-cent gain a day earlier. Prices have rebounded almost 19% from a trough below $65 on May 20.
The US National Hurricane Centre said the likelihood was high that a weather system in the Caribbean develops into a tropical cyclone. The Miami-based Centre raised the chances the wave will reach that status in the next two days to 60% from 40% earlier on Thursday.
All weather models project the system will cross Yucatan Peninsula over the next few days. After that, most forecasts still expect the wave to turn northwest and hit the coast near the Texas-Mexico border.
Gold made choppy move as speculators paused after pushing prices towards $1,250 in the previous session, but a rise in ETF holdings to a record high indicated persistent worries over the global economy.
Spot gold traded $9.90 stronger at $1,251.25 an ounce after gaining nearly 1% on Thursday as US stocks tumbled. Gold struck a record high above $1,264 on Monday. US gold futures for August delivery added $2.00 an ounce to $1,247.90 an ounce. It had settled around $11 higher as lingering European credit contagion fears pressured equity markets.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust said its holdings rose to a record high at 1,316.18 tonnes as of June 24 from the previous high of 1,313.14 tonnes set on June 22.
London copper edged lower after rallying 2.7% in the previous session as upbeat durable goods orders assured investors the world's biggest economy remains on a recovery track.
Thursday's rise puts LME copper on course to post its biggest weekly gain in 12 weeks, thanks to a big boost early in the week from 's move to allow more flexibility in the yuan exchange rate, which brightened the demand outlook on hopes for appreciation against the US dollar to make imports less costly.
Three-month copper on the London Metal Exchange (LME) eased $50 to $6,645.00 a tonne. Further lending support was continued drawdown in LME copper stocks with latest data showing LME copper inventory at 454,700 tonnes, the lowest since early December 2009. Other metal counters were also quoting lower.
New claims for state jobless benefits fell last week while a closely watched gauge of demand for factory goods rebounded in May, offering assurance the economy's fragile recovery remains intact.
The data helped boost sentiment toward industrial metals along with figures showing the output of rolled copper product in the world's second largest economy rose 50.4% from a year earlier to 72,627 tonnes in May on a seasonally adjusted basis.
Domestic commodity futures continued to trade mixed amid thin participation ahead of week-end. Rupee recovering against the US dollar applied check on commodity price movement.
MCX crude oil futures for July maintained reversed falling trend, tracking global cues. The contract was last trading 0.5% higher at Rs 3,552 per barrel after having spent the session between Rs 3,567 and Rs 3,543.
MCX Gold for August settlement contract moved in narrow range and was last quoting at Rs 18,814. The counter spent the session between Rs 18,870 and Rs 18,786 per 10 grams amid thin trades. MCX Silver July settlement contract was trading flat at Rs 29,501 per kg, after having opened the session at Rs 29,569.
Base metals continued trend lower on depressed market condition. MCX copper for June settlement was down 0.5% at Rs 306.05 per kg. MCX zinc June contract lost nearly 2% to trade at Rs 84.15 per kg.
