11/22/2010 06:17:00 PM
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MCX Commodity Updates
1- GOLD REBOUNDS AS EURO RECOVERY BENEFITS COMMODITIES.
2- OIL REBOUNDS TOWARDS $82 AS EUROPEAN DEBT WOES EASE.
3- COPPER RALLIES, EASING IRISH DEBT FEARS HIT DOLLAR.
4- INDIAN SPICES RALLY; TURMERIC HIT CONTRACT HIGH.
Spot gold prices started the week on a positive note, gaining around 0.5% in the afternoon trade today. The US dollar depreciated in the Asian and the European trade today and this factor helped gold prices to trade in the green. However, on the other hand, a sharp upside was capped in gold prices on the back of optimism over Ireland’s bailout. After the ailing economy seeked a bailout on Sunday, UK said today that it would provide around 7 bn British pounds
to the country as a financial aid. The European Union (EU) and the International Monetary Fund (IMF) are currently working on the financial package to be provided to Ireland.
Copper prices slipped from its intra‐day high of $8516/tonne on the LME today after data indicated that copper imports from China declined for the month of October. Copper demand from China, the world’s largest metal consumer declined by 30% to 169,897 metric tonnes in October from the previous of 241,711 tonnes in September. However, a sharp decline in copper prices was cushioned on the back of a weaker US dollar. On the MCX, red metal prices declined by 0.3% and were hovering at `383.15/kg till 3.45 pm today.
Crude oil prices rallied today, rebounding strongly from its previous week’s losses. Oil prices surged mainly taking cues from the weakness in the US dollar which declined on optimism over Ireland’s bailout. Positive sentiments in the global financial markets also supported a rise in crude oil prices today. On the MCX, oil prices gained almost 1% and were hovering at `3782/bbl till 3.45 pm IST today.
Outlook -There is no economic data to be released from the US today. Broader markets are currently trading in the green but are witnessing lackluster trading. Markets will continue to take cues mainly on the developments from the Euro zone front. Copper prices will witness downside pressure on the back of declining imports in China, the largest consumer of the red metal. Crude oil prices are expected to trade on a positive note as weakness in the US dollar will make prices attractive for holders of other currencies. Gold prices will also be supported by a weaker greenback, although a sharp rise from the current levels is not expected.
