12/16/2010 06:04:00 PM
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Commodity Review
Weakness in the US dollar and mixed sentiments in the global equity markets made gold prices look attractive for investors. The yellow metal prices gained around 0.4 percent in the international markets and were hovering around $1384.35/oz at 4.00 pm IST. However, appreciation of the Indian Rupee exerted pressure on gold prices in the domestic markets today. Indian currency gained on the back of recovery in the domestic equities after the Reserve Bank of India left key interest rates unchanged; only decreasing the SLR to 24 percent from the previous of 25 percent. On the MCX, the yellow metal prices declined by around 0.3 percent, touching an intra-day low of `20550 around the same time today.
Crude oil prices came under pressure in the Asian trade today mainly on the back of increasing speculation that the colder climate in US may slack off, thus decreasing the demand for oil for heating purpose. Oil prices slipped more than 0.5 percent on the Nymex, touching an intra-day low of $88.05/bbl till 4.00 pm IST today. On the MCX, oil prices declined around 0.4 percent and were trading at `4006/bbl today.
Zinc was the exception today and the metal prices gained in the Asian trade mainly due to weakness in the US dollar and falling inventories of the metal on the LME warehouse today. Zinc inventories declined by 575 tonnes to 699,175 tonnes today. Prices gained almost 0.5 percent on the LME, touching an intra-day high of$2274/tonne on the exchange till 4.00 pm IST. But, on the MCX, zinc prices were trading on a flat note as sharp gains were capped due to appreciation in the Indian Rupee today.
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