GOLD: Gold recovered a little from previous day losses rose above $1,160 an ounce in Europe today but could not hold at this level and again tumbled to 12-week low to 1156.90 as price-sensitive traders went into the mode of panic selling in the market making base of previous day prices, also there was strong demand reported in domestic market, as retail buyers were waiting for prices to come for physical buying. Traders in the country said, buying was picking up as the metal became more affordable. Gold in Ahmadabad spot market last closed at 17,750 rupees per 10 grams down by 270 rupees. The metal, however, remains vulnerable to further losses after breaking key technical levels and as investment wanes, analysts said. International Spot gold was bid at $1,159.00 an ounce at 1410 GMT, against $1,159.65 late in New York on Tuesday. US gold futures for August delivery rose $4.10 an ounce to $1,162.10. Prices fell nearly 2% on Tuesday as selling of commodities in the wake of weak US consumer confidence data pushed the metal through key technical support levels. Analysts said despite the metal's slight recovery this morning, diversification into other assets, seasonal demand weakness and a tendency towards liquidation of long positions are all still pressuring prices. From a technical perspective, gold prices are looking vulnerable to further losses after breaking through support in the $1,175-1,180 an ounce area, they said. While the risk of further losses remains, analysts said gold should be supported by re-emergent physical demand at lower prices. A Reuters poll of 19 analysts and traders showed Indian spot gold prices are expected to recover to 18,050 rupees per 10 grams by the end of this quarter. Prices hit a 10-week low near 17,700 rupees earlier in the day. India's gold imports in July are seen at around 14 tonnes to 15 tonnes provisionally, down from 28.4 tonnes imported last year, head of Bombay Bullion Association Suresh Hundia said today. India gold futures are still trading in a range tracking overseas markets, but there was no major support from physical buying. August gold contract on MCX is trading at 17,754 rupees per 10 grams. Market is waiting for further cues from international markets where prices are range bound till now.
SILVER: Silver prices too declined in line with yellow metal. International spot price fell by 2.97% to $17.64 an ounce in New York. At 1230 GMT it traded at 17.57 down by 0.40%. On MCX silver prices fell by Rs 217 to Rs 28,241 per kg in futures market today on emergence of selling, sparked by a weakening trend in global markets. September futures on MCX were trading at 28,672 rupees, down by 0.65% (06:05 PM). Meanwhile, silver in spot market fell in by 740 rupees to 28,314 rupees. Sell around 28,660 with the S/L above 28,850 for the target of 28,100, Religare Commodities suggested.
COPPER: Copper futures on MCX gained over 1% today to hit its highest level of 335.80 rupees per kg in 13 weeks tracking firm overseas leads, where strong demand view from China supported the red metal. The most-active August contract was trading 0.84% higher at 334.20 rupees per kg at 06:15 p.m. LME copper rose to its highest level since May after Chinese announcement of economic growth in the country which is top metals consumer. Benchmark copper for 3-month delivery on LME traded at $7,145 a tonne from $7,059 at the close on Tuesday and compared with a session high at $7,198. Chinese equities often seen as an indicator for economic activity and movement in base metals, that country's benchmark Shanghai Composite Index also rose more than 2% to a 2-month closing high. Upbeat trend was also aiding in recent weeks from the growing trend of falling LME inventories. Today copper stocks slipped 2,375 tonnes to 411,425 tonnes, having fallen from 6-1/2 year highs at 555,075 tonnes in mid-February. At 1209 GMT LME copper was at $7165.00 per tonne up by1.50%. In India base metal prices also take leads from the currency movement of rupee/dollar, rupee was flat today after yesterday spurt in rupee value against dollar. "Expect (copper) to move up and find resistance at 337/339 followed by 342 levels, while 329 hold the downside. Prices have to cross below 327 to dent our bullish view," senior analyst with Geojit Comtrade, Anand James, said.
BASE METALS: Other base metals in international market were also strong on the counter after Chinese announcement and falling inventories, and got good returns to the traders. On LME Aluminium traded at $2,077 a tonne in LME rings versus $2,056, down from an earlier two month high at $2,086. LME stocks for the metal fell 4,650 tonnes to 4.39 million tonnes. Many analysts are bearish on aluminium, as aluminium market is oversupplied, and could put downward pressure prices. Among other metals, nickel was untraded in exchange rings but last bid at $20,450 from $20,550, while lead was traded $1,993 from $1,977. Zinc traded at $1,955 a tonne in LME rings from $1,910 and tin at $19,500 from $19,550. Zinc earlier touched its highest level since May 17 at $1,967.75. On MCX most of the base metals counter was quite strong, Zinc July at 06:40 PM was trading 1.53% higher at 89.85 rupees per kg, while lead for July delivery was trading 0.88% higher at 92.10 rupees per kg. "If (lead is) unable to break above 93.50, we would see prices drifting prices lower towards 91/90 levels. Need to cross above 93.50 to negate the view," said Geojit Comtrade. Nickel for July was trading 0.38% lower at 954.40 rupees per kg. Aluminium for July was trading 0.58% higher at 96 rupees per kg. "While above the 94 we can expect a rally till 97/99.40 (in aluminium), weakness only a break below 90.20," said Geojit Comtrde.
