Commodities

Weak trend persists in commodity markets

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

copper

Although the broad sentiments remained negative, commodity markets shed their losing streak on news of a rebound in the euro.

The euro rebounded from a four-month-low on the back of some surprisingly strong German GDP data, which took the pressure off the market and slightly lifted the sentiments.

German GDP data

German economy grew 0.5 per cent in the first quarter against the expectation of 0.1 per cent.

Euro zone GDP data indicated that the region might be able to avoid recession although the economy continued to remain fragile.

However, overall sentiments were feeble over political uncertainty in Greece which could worsen the Euro zone crisis.

Gold

Spot gold bounced out of its four-and-a-half month low as global economic uncertainties boosted the yellow metal’s safe haven appeal. The recent slide in prices had attracted lower-level buying from Asia too.

In the Indian markets, gold was seen trending lower as the rupee retreated after breaking Rs 54 against a US dollar, a report from Geojit Comtrade said.

However, the market remained cautious and gold continued to trade in a very narrow range.

Base metals

Base metals at the London Metal Exchange were moving mostly steady to negative.

Concerns over slowing growth in China and political uncertainty in Greece dragged down copper prices, mostly ignoring the upbeat data from Germany.

Copper continued to range close to its four-month low. MCX copper followed a similar pattern.

Crude

Crude oil pared the earlier losses and was seen rebounding though it continued to hover near the five-month low levels in Nymex.

However, expectation of higher build-up in crude oil inventories may keep the gains under check. Crude oil, which had made nominal gains yesterday, lost strength in late evening trade in the Indian markets.

>cj@thehindu.co.in





Published on May 16, 2012

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