Commodities were on a recovery path after disastrous performance last week. However, investors remained wary of recent developments in the Euro zone.
The slashing of Greece’s credit rating by Fitch and the Moody’s ratings cut of certain lenders in Spain added to the pain in the markets. Worries over persisting Euro zone debt crisis continued.
Recent economic indicators from the US provided little cheer to the markets. However, reports showing probability of pro-bailout parties returning in Greece helped to improve sentiments to certain extent.
The yellow metal stretched its gains after presenting a striking recovery from the recent plunges. Recovery in euro also supported gold.
MCX gold extended its previous session rally tracking gains in the global markets supported by a fragile rupee, a report from Geojit Comtrade said. Rupee had made fresh low before showing a mild recovery.
Technically, gold has been in the oversold territory since May 8, prompting investors and traders to do some short-covering and buying on dips.
In the coming week, Rs 294,00 will act as a major resistance and Rs 27,800 will act as a major support, a report from CapitalVia Global Research said.
Base metals
Base metals were seen recovering while persisting worries over Euro zone debt woes capped gains. LME copper gained around one per cent. MCX base metals rose in tandem with international market and currency movements provided additional support.
London copper peeked above four-month lows last week on short-covering and signs that Greeks are warming to pro-austerity parties, allaying some fears the country could leave the Euro zone. For the upcoming week, copper is expected to trade on higher levels, analysts said.
Crude
Crude oil was seen declining in the international market, falling to its lowest price this year in Nymex on demand concerns.
Technically, crude oil was consolidating at lower levels, trading in a range of Rs 5,150 to Rs 5,000 for the entire week.
For the coming week, Rs 5,000 and Rs 4,800 will act as major support and Rs 5,120 and Rs 52,50 will act as major resistance in MCX crude, the CapitalVia report said.