MUMBAI: Tepid trading activity persisted on the commodity bourses this morning for lack of guidance from and US markets. Chinese markets are close an account of Lunar New Year while US markets will remain shut for observing Presidents Day.
Global financial markets are waiting for cues from European Union Central Bank (ECB) meet which is scheduled to discuss on bailout plan.
However, the euro – 16 nation currency - has been softening against the US dollar. Commodity futures, usually, move inversely proportionate to the greenback.
Markets would also be keeping close on currency as 's central bank surprised markets on Friday by saying it was raising banks' reserve requirements by 50 basis points, effective February 25, the second such increase this year.
Reacting to central bank’s decision most commodity counters went into a tailspin on Friday.
US crude futures have maintained steady tone this morning, trading above $74 as the market eyed tighter monetary policy in and rising oil inventories in the , the world's top consumers.
NYMEX crude for March delivery edged 6 cents lower to $74.07 a barrel, after dropping $1.15 on Friday, when it tumbled to an intra-day low of $72.66.
US crude oil and gasoline inventories rose more than forecast last week while distillates fell much less than expected, showed weekly government data on Friday which analysts said reflected lingering weak demand for refined fuels in the world's largest energy consumer.
Gold prices steadied above $1,091 per ounce, with investors keeping an eye on the currency market for a direction, while market holidays in and areexpected to slow activity. Spot gold eased 0.1% to $1,091.85 an ounce, compared with New York’s notional close of $1,092.40.
On Thursday, spot gold rose to a session high of $1,097.75 an ounce, the highest since February 4, as investors turned to the metal as a hedge against currency volatility after news that European governments agreed in principle to support heavily indebted Greece.
But a rise in the US dollar has since capped further gains in the precious metal. US gold futures for April delivery were up 0.3% at $1,093.00 an ounce.
US markets are closed on Monday for Presidents Day. Chinese markets are closed for the Chinese New Year holiday.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust said its holdings held steady at 1,106.38 tonnes on Friday.
Base metal counters are expected to move in a narrow range for lack of guidance from the Chinese markets.
Shanghai markets are closed on account of Chinese new-year. Currency moves and scheduled economic data out of Euro region could provide some lead for metal price movement.
Copper prices fell Friday under the weight of a stronger US dollar, mixed economic data in the and further monetary tightening moves in , which triggered renewed worries about near-term demand prospects in the world's top metals consumer.
On the London Metal Exchange (LME), copper for three-month delivery ended at $6,810 a tonne, down $130 from Thursday, off two-week high.
On the supply side, LME copper stocks at one-year highs above 547,000 tonnes weighed on prices, but against that, canceled warrants -- material earmarked for delivery -- doubled to above 12,000 tonnes on Thursday from Wednesday.
Domestic commodity markets witnessed a mixed tone since opening as pressure from weak global cues was off-set by stronger rupee.
On MCX, crude oil contract for near-month settlement was last quoting almost flat at Rs 3,438 a barrel, not far from early lows of Rs 3,437. The contract had opened the session at Rs 3,440.
MCX Gold for April settlement contract came out of narrow range movement as rupee appreciated against the US dollar. After a quick move higher at Rs 16,517 per 10 gram, the contract has retraced to current level of Rs 16,483 per 10 grams.
MCX Silver March settlement contract traded 0.2% lower at Rs 24,408 per kg, after having opened the session at Rs 24,485.
Base metal counters maintained steady declining trend tracking previous session decline on the LME.
MCX copper for February settlement traded 0.3% lower at Rs 313.90 per kg. MCX zinc February contract regained Rs 100 a kg mark for a brief period.
The contract was last quoting 0.6% lower at Rs 99.85 a kg, after having resumed the session at Rs 100.40.
