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The forecast of good monsoon in India is likely to bolster commodity markets.
Promising sufficient availability of commodities, the forecast brings hope of tempering inflation and accelerating economic growth.
The good tidings from India come on the back of spurt in commodity prices in the global markets.
Commodities were on a greener turf on Thursday, bolstered by the US Federal Reserve comments over the US economy and reassurance that it was ready to provide monetary stimulus if necessary.
Gold
Spot gold firmed up helped by Fed’s comments and a weaker dollar.
Meanwhile at the Multi Commodity Exchange, gold extended gains tracking the international market and a depreciating rupee, a report from Geojit Comtrade said.
Good monsoon also promises revival in Indian gold prices as rural demand for the yellow metal is expected to bounce back.
Base metals
Base metals on the London Metal Exchange and Shanghai rose with LME copper inching up to a two-week high. However, gains were limited on concerns over demand from China.
MCX base metal complex rose too with nickel being the best performer, advancing at least a per cent.
Crude oil
Optimistic view of the Fed over the state of US economy lifted crude oil prices to almost one-week high. However, waning worries over Iran after its envoy in Moscow said that the country may halt the expansion of its atomic program to avert new sanctions may weigh on crude prices in the days to come.
Rupee
As gold prices rose in the Indian and international markets, the rupee pared its initial gains and was seen in red at 52.577, down 0.08 per cent. Good monsoon forecast and easing inflation worries could guide the trend in rupee in the coming days.
Euro worries remain. The Euro-Area April economic confidence fell to 92.8, which bolstered the belief that the spreading debt contagion is taking its toll on key economic indicators.
cj@thehindu.co.in
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