Commodities

Commodities make early recovery

C. J. Punnathara Kochi May 18 | Updated on March 12, 2018

Spot gold rebounded from a four-and-a-half month low, gaining around one per cent. Steep price declines is likely to have attracted bargain-hunting.

Commodity markets took a breather and were seen recuperating from its recent slump.

However, investors remained guarded as worries over Euro zone debt crisis and political uncertainty in Greece continued.

Rebound in euro from four-month low levels lifted the sentiments. Euro was seen paring some of its early gains in late afternoon trades yesterday. 

Gold

Spot gold rebounded from a four-and-a-half month low, gaining around one per cent. Steep price declines is likely to have attracted bargain-hunting.

Gold rose at the Multi Commodity Exchange, probably tracking global gains, a report from Geojit Comtrade said.

Downtrend in rupee provided firm support too. Rupee continued to spiral down to new lows following an initial pullback.

Meanwhile, gold demand from China rose to a record high during the first quarter, toppling India as the biggest bullion market in the world, a report from the World Gold Council said. 

Base metals

Base metals rose at the London Metal Exchange and Shanghai with copper gaining more than one per cent, snapping a four-day fall.  Better-than-expected expansion in Japanese economy during the first quarter of this year supported the price rise.

Crude 

Crude oil at Nymex rebounded from a six-month low level on expectation that the inventory glut may ease at the main storage hub in the US. 

Earlier, Spanish bond auction saw borrowing cost inching higher amid growing concerns over Greece’s future in the European Union, creating further unease among investors. 

Depressed growth prospects in Euro zone could have a negative impact on crude prices.

cj@thehindu.co.in

Published on May 18, 2012

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