COMMODITY MARKET: CRUDE OIL FUTURES PARE GAINS ON DEMAND CONCERNS AND HIGHER PRICES

Commodity Prices traded on an upbeat note on Tuesday where bullion and crude oil pared gains while base metals complex traded with weak note. Currently, Silver, Crude oil, Gold, Mentha oil, CPO futures were trading with positive note while Nickel, Copper, Zinc, Aluminium, Kapas, Lead, Cotton, Natural Gas were trading with negative note.

BULLION:

Precious metals gained marginally in Indian markets today. MCXBULLDEX was trading up by 0.75% at 14167.April gold contract was trading at Rs 44514 per 10 grams, up 0.67%. Gold futures touched an intraday high of Rs 44697 per 10 gm. Bullion prices halted declines with progress on $1.9 trillion stimulus package. However, the precious metals are still under selling pressure due to firm bond yields and stronger dollar which may limit the upside for short term.May silver futures rose 1.28%, to Rs 66695 per kg, touched a high of Rs. 67001 and low of Rs. 65901 on today.

ENERGY:

Crude oil prices resumed uptrend on Tuesday. Crude oil prices gained on fuel demand recovery hopes with progress on $1.9 trillion stimulus package and expectations of bullish weekly inventory data. Eased tensions in Middle East after the recent attack on Saudi oil facilities have dragged oil prices down from recent highs. In future market, Crude oil for March delivery was trading nearly 1 % gains, touched a day’s high of Rs 4823 and an intraday low of Rs 4715 per barrel on MCX. Natural gas Mar delivery traded flat with negative bias , down by 0.05 % at Rs. 194.40 per mmBtu.

BASE METAL:

MCXMELTDEX Mar delivery traded down by 1.95% at Rs. 13855 unit. Base metals complex were trading under pressure on stronger dollar index while downside was limited on improved demand outlook. Nickel Mar future was trading down by 3.26% at RS. 1162.10 per kg, Copper Mar future was down above 2%.Zinc, Aluminium were trading lower by 1.66%, 1.15% respectively.