Commodities

Commodity markets remain weak

C. J. Punnathara Kochi | Updated on November 15, 2017

Spot gold slipped to its lowest levels since late December, while spot silver was hovering near its lowest in 2012. 

Worries over the Euro zone debt crisis and political turmoil in Greece continue to hold sway over commodity markets. Investors remained risk averse, pushing commodities further lower.

Gold

Even the safe haven appeal of gold was seen eroding. Bullion moved in tandem with other riskier assets and a flight was seen towards other safe haven investments like US dollar.

Dollar index rose to a four-and-a-half month high, while euro continued its slide. Spot gold slipped to its lowest levels since late December, while spot silver was hovering near its lowest in 2012.

MCX gold continued to decline tracking global markets though depreciating rupee restricted deep downside moves, a report from Geojit Comtrade said. Rupee breached Rs 54 a dollar mark tumbling to a record low.

Base metal complex

The story was similar with base metals. Base metals at the London Metal Exchange as well as in Shanghai remained in the negative territory.

Copper, lead and zinc at LME shed more than one per cent with copper falling to a four-month low.

Chinese demand woes and uncertainty over Greece pressured markets to move south amid strengthening dollar.

Crude

Crude oil maintained the downtrend with Nymex crude oil falling to a six-month low. Build-up in crude oil inventories also weighed on the market sentiments.

American Petroleum Institute inventory data released yesterday showed that crude oil inventories rose 6.6 million barrels.

EIA inventory report is expected to indicate a rise that may add further pressure on crude oil.

>cj@thehindu.co.in

Published on May 17, 2012

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