MUMBAI: Commodity markets maintained a steady tone in today’s session so far, reacting to positive cues from the global economy. A strong trend emerging from the US and European economies coupled with robust Asian indicators helped lift the market sentiment. Buoyancy in the Eurozone helped the euro – the currency of 16-member Euro region – strengthen against the dollar. Usually, a stronger euro bodes well for investment into commodities and, hence, the price gains in most of commodity counters.
US crude oil futures extended gains this morning after climbing nearly 3% a day earlier, continuing to get support from a weaker dollar and optimism on the economy. However, some selling pressure built in European trade led to a choppy session so far. NYMEX crude for May delivery was last up 11 cents at $82.28 a barrel. The counter settled $2.17 higher at $82.17 a barrel on Monday. It hit a high of $82.78 on Monday; it’s highest since March 18.
Bullion markets continued to shine its way into positive zone. Gold inched up as the euro held firm against the dollar. Also, the quarter-end book squaring helped the yellow metal track higher so far.
Spot gold was at $1,108.25 an ounce, up $0.25 from New York's notional close on Monday, when it rose as high as $1,114.45 an ounce, its strongest in nearly two weeks. US gold futures for April delivery fell $1.70 an ounce to $1,109.80 an ounce, having also risen to its highest in nearly two weeks on Monday.
Copper maintained its bullish momentum in late trade on Monday with prices in New York and London stretching to their highest levels since August 2008 as a weaker US dollar and improved demand prospects from declining inventory levels powered the advance.
On the London Metal Exchange (LME), benchmark copper for three-month delivery closed at $7,770 a tonne from a close of $7,514 on Friday. After-hours, copper prices rose further to $7,800 per tonne, another high going back to August 2008. The contract has recouped the morning’s losses and was last quoting at $7,826 a tonne, up $21.
Copper stocks fell 1,400 tonne to 515,525 tonne, their lowest level since early January, after falling throughout March. Stocks hit a 6-1/2 year high of 555,075 tonne in mid-February.
As observed previously, the domestic commodity counters maintained a sluggish tone pressured by strengthening rupee. The domestic currency has strengthened past 19-month high earlier today before retracing to end the day above 45 per dollar level. While crude oil and precious metal counters sustained gains, base metal counters seen surrendering to profit taking pressure.
MCX crude oil futures for April settlement moved between Rs 3,727 and Rs 3,698. The contract was last quoting at Rs 3,715, off its day high level. Gold edged up marginally. MCX Gold for April settlement contract last quoted at Rs 16,346 per 10 grams after moving between Rs 16,386 and Rs 16,315 per 10 gram. MCX Silver May settlement contract added 0.04% to quote at Rs 26,861 per kg, after having opened the session at Rs 26,847.
Base metal counters recovered in late trade, tracking overseas markets. MCX copper for April settlement was last quoting at Rs 353 per kg, after opening the session at Rs 350. MCX zinc March contract added 1.6% to trade at Rs 105.30 per kg.
