Ambiguity continues to exist in the commodity markets over the Euro Zone debt crisis after the French and Greek elections kept markets under pressure.

The overall sentiment, however, stayed vulnerable pressuring equities and commodities to move further south.

Gold

Spot gold declined for the second consecutive day tracking losses in euro.

However, fresh demand from India and China may provide cushion to the falling prices, a report from Geojit Comtrade said.

At the Multi Commodity Exchange, gold was seen extending the previous session losses.

Yet, depreciating trends in rupee after some positive moves earlier may provide support to the falling prices. Meanwhile, spot silver dropped more than a per cent.

Base metals

Base metal segment at the London Metal Exchange turned lower following some positive trend in the morning trade after Spain hinted that it would use public funds to bolster its struggling banks.

Later, strengthening dollar and uncertainty over Euro Zone debt worries sent prices down. At MCX, base metals were down around one per cent yesterday.

Crude oil

Crude oil prices were hovering near its three-month low at Nymex. Increase in supplies amid economic uncertainty weighed on the market.

The Saudi Arabian Oil Minister said that the nation was pumping around 10 million barrels per day, close to its highest in a decade. It was also storing 80 million barrels in case of any disruption in supplies, which in turn weighed on prices.

Rupee

The statement by the RBI Deputy Governor, Mr Subir Gokarn, that there is limited room for lower interest rates could add further pressure on the rupee. The trend in the value of the rupee is likely to guide the sentiments in gold.

>cj@thehindu.co.in

comment COMMENT NOW