5/12/2011 05:14:00 PM
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MCX Commodity Bullion
Spot Silver traded lower by almost 9 percent on Wednesday, mainly on the back of strength in the US dollar. Silver being as industrial metals was also pressurized due to downtrend in the base metals yesterday. Prices touched an intra-day low of $35.02/oz and closed at $35.06/oz. On the MCX, silver July contract slipped around 8 percent and touched an intra-day low of `53,520/kg on Wednesday.
Spot gold declined more than 1 percent in yesterday’s trading session as strength in the US dollar exerted pressure on gold prices. Additionally, fall in crude oil prices also eased the inflation fears which reduced inflation-hedge demand for the yellow metal. Prices touched an intra-day low of $1495.65/oz and closed at $1499.75/oz on Wednesday.
Crude Oil
We expect crude oil to trade lower today on account of a stronger dollar and choppy sentiments in the global financial markets. But sharp decline will be cushioned as prices will receive support from expected strong demand growth in Asia.
Copper Review
Copper was the worst performer of the day, as the metal declined more than 3 percent on both LME as well as on the MCX on Wednesday. Weak economic data from China indicates declining growth in the country which may affect demand for red metal from the world’s largest metal consumer. This has acted as a negative factor for copper
yesterday.
Following copper, Lead declined around 2.8 percent on the LME and almost 2.5 percent on the MCX to be the second bad performer on Wednesday. The metal touched an intra- day low of $2264.25/tonne on the LME and closed at $2280/tonne. On the MCX, the metal touched an intra-day low of `101.80/kg and closed at `102.70/kg yesterday.
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