Commodities

Commodity markets likely to remain weak

C. J. Punnathara Kochi | Updated on November 12, 2019

copper

Global commodity markets closed on a sober note last week-end driven by growing concerns over economic growth in the US and Europe.

Weak Chinese industrial production and trade data added to the woes of the markets.

Although there was no major negative news from India over the week-end, sentiments are expected to remain weak and commodities are likely to trade in a narrow range, bereft of direction.

Gold

In the global markets, spot gold fell to the lowest levels in four months, shedding more than one per cent.

However, investors were closely watching the progress made on Spanish bank reforms, which they think will guide the price movement of gold.

Taking cues from gold, other metals like silver, platinum and palladium also declined in the global markets.

At the Multi Commodity Exchange, silver was seen declining following cues from the global markets, a report from Geojit Comtrade said.

Depreciation in the rupee limited the losses in gold, although the trend remained weak.

Base metals

Downbeat economic indicators from China raised concerns over growth in the world's second largest economy, dragging the base metals down.

LME base metal complex lost about one per cent and copper was heading to post losses for the second consecutive week. In the Indian markets too, base metals remained weak.

Crude

Nymex crude was also on course to register losses for the second successive week.

The OPEC data showed that it was producing 8.3 per cent more crude than what was considered necessary during the present quarter.

Growth concerns from US and Europe, which spilled over to China last week-end, also lowered the market sentiment.

However, IEA's comments that global oil markets are "marginally tighter'' brought some relief and helped crude trim some of its losses.

Rupee

Weak industrial production data continued to put pressure on Indian rupee.

Rupee depreciated against the US dollar after gaining through the previous session.

Good tidings on the FDI front and surge in NRI deposits during the week-end could drive the sentiment this week.

cj@thehindu.co.in

Published on May 14, 2012

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