MUMBAI: After witnessing widespread technical selling in the previous session, commodity counters were caught in indecisive mode this morning with little help from fundamental factors. With no major data coming from the region this evening, markets lacked conviction and, hence, found themselves reacting to currency moves. The Euro gaining for the second day in a row influenced most of the trading activity.
Crude oil prices were struck in a narrow range ahead of industry report on crude oil inventory which is expected to show a rise. US crude oil futures for April delivery edged down after hitting an 8-week high above $82 a barrel on Monday. The counter slipped below $81/bbl mark and was last trading 88 cents at $80.99 a barrel.
Gold prices on the New York Mercantile Exchange (NYMEX) continued to trend lower this morning after having dropped the most in nearly a month on Monday. Spot gold traded near $1,119.00 an ounce, down $3 from New York's notional close on yesterday.
The price of gold fell to its lowest point since early February as gold buying became less appealing. Many investors, who once looked gold as a safe haven, decide to sell the metal.
Base metal counters too encountered resistance at higher levels and hence retreated lower. Shanghai Copper traded weak, after London futures wilted in the previous session on technically driven selling. Three-month copper on the London Metal Exchange (LME) fell $100 to trade at$7,420 a tonne. Sentiment has been underpinned by declining stocks - LME inventories have fallen 9,000 tonne since March 2 to 541,575 tonne and high levels of cancelled warrants signal outflows are set to continue.
Domestic commodity counters witnessed increased volatility with investors trimming positions on every rise. Crude oil, gold are some of the counters that witnessed high concentration of trader interest. Hence, the counters experienced choppy session so far. MCX crude oil futures for March settlement gyrated between Rs 3,720 and Rs 3,665 before retracing to Rs 3,677 per barrel.
MCX Gold for April settlement last quoted at Rs 16,674 per 10 grams after having resumed moved between Rs 16,733 and Rs 16,634 per 10 gram. MCX Silver March settlement contract lost 0.9% to trade at Rs 26,630 per kg, after having touched a high of Rs 26,816.
Base metal counters too remain under pressure tracking weakness on the LME. MCX copper for March settlement was last quoting 0.8% lower at Rs 339.70 per kg, after resuming the session at Rs 342.55. MCX zinc March contract shed 0.8% to trade at Rs 106.30 per kg.
