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Commodity markets remained wary over the continuing Euro Zone debt crisis.
The US FOMC rate decision and the possibility of another round of quantitative easing could provide the sentiment and direction for global commodity trade. However, the rate and quantitative decision are expected late tonight, Indian time.
Gold
Most commodities were seen rebounding from the previous session’s declines in global markets.
Spot gold was seen paring the initial losses, while spot silver bounced back from a three-month low level.
In the Indian market, gains in bullion were more pronounced supported by ‘Akshaya Tritiya’ buying and a depreciating rupee, a report from Geojit Comtrade said.
Continuing the previous session’s rally, gold advanced around 0.5 per cent. However, the yellow metal lost some of its sheen in late evening trade. After the strong rebound yesterday, some amount of easing is expected today, analysts said,
Indian rupee
The rupee continued its downward spiral, approaching the lowest levels since January this year. The spurt in gold prices also weakened the sentiment for the domestic unit.
Crude oil
Weakness in the rupee lifted MCX crude oil too. Nymex crude oil hovered near $103 a barrel, while Brent crude oil dipped below $119 a barrel.
Expectation of a higher inventory build-up in the US weighed also on the prices. Trends in Indian crude prices will be dictated by a combination of international news flows and direction in rupee trade.
Base metals
Base metal complex on the London Metal Exchange moved with copper rising smartly above $8,100 a tonne. However, overall global market sentiments remained wary.
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