After a day of divergent trends, markets are likely to remain in a cautious mood today.
While spot gold declined in the global markets yesterday, base metals held firm and crude oil markets remained weak.
Markets are likely to remain in a cautious mode ahead of the crucial economic releases from the US and Euro Zone in the coming days, a report from Geojit Comtrade said.
Spot gold declined for the second consecutive day, moving further away from its three-week high level pressured by weaker Euro. Faltering manufacturing activity in the Euro Zone also weighed on the gold market.
At the Multi Commodity Exchange, however, the losses were limited as rupee continued to spiral down against US dollar.
Base metals
Base metals showed a mixed trend in the international markets. While the base metal complex was seen falling at the London Metal Exchange, in Shanghai it remained firm.
Weak manufacturing data from the Euro Zone and concerns over demand from China weighed on the sentiments. China HSBC manufacturing PMI released on Wednesday showed contraction for the sixth straight month.
Crude
Weak manufacturing data dragged down crude oil prices too. However, oil markets are waiting for the weekly US EIA inventory report for fresh directions. Forecast show a rise in crude oil inventory while that of products are seen down.
Spices & agri-products
The Forward Markets Commission’s move to cut the penalty for default in delivery buoyed up the Indian spice and agri-commodity futures markets yesterday. Chana and cumin counters witnessed hectic activity and the prices moved up sharply.
It is to be seen if the upward momentum is sustained today or whether corrections and profit-booking commences, analysts said.
Pepper prices were tempered by global market sentiments.