Commodities

G8 meet induces confidence into commodity markets

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

Spot gold eased after a spectacular bounce-back rally in global markets. It had fallen to its lowest levels this year during the previous week. 

Comments by world leaders during the G8 meeting last week-end induced some confidence into commodity markets. However, worries over possible Greece exit from Euro zone persisted.

During the week-end G8 summit in Camp David, the leaders promised to take necessary action to fight the financial crisis and revitalise the global economy.

This steadied the euro near its recent lows. But gains in commodities were capped by worries over Greece.

Gold

Spot gold eased after a spectacular bounce-back rally in global markets. It had fallen to its lowest levels this year during the previous week.

Softer euro capped the northward movement of the yellow metal in Europe. Tracking the global markets, gold was seen trimming the initial gains in India, a report from Geojit Comtrade said.

However, the continuing fall in rupee cushioned the prices in the domestic markets. Rupee breached the psychological barrier of Rs 55 to a dollar.

Base metals

Base metals at the London Metal Exchange were in a positive territory. LME copper stretched the previous session gains, rising from its four-month low levels. However, worries over worsening of debt crisis in Greece limited the gains.

Crude

Crude oil was trading near $92 a barrel, rising for the first time in seven sessions.

Prospects of more economic stimulus by China to support economic growth and talks between Iran and world leaders dominated crude oil sentiment. Greek worries continued to sow the seeds of apprehension.

>cj@thehindu.co.in

Published on May 22, 2012

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