Sentiments in global commodity markets remained weak on Monday mainly on account of Euro Zone debt crisis.
However, the Indian markets remained relatively less volatile. Weakness in the rupee helped to mask some of the falling sentiments in the Indian markets.
Amid the relentless worries over the Euro Zone debt crisis and threats of slowing global economic growth, the attention was focused on the US FOMC meeting which will decide on another round of quantitative easing.
Although the China HSBC manufacturing PMI showed a slight improvement of the Chinese economy during April, concerns in global commodity markets were not fully addressed.
Gold
Spot gold eased, dropping around 0.5 per cent after trading mostly flat in the early morning trade yesterday. However in the Indian markets, losses were limited owing to depreciating rupee. But ‘Akshaya Tritiya’ buying seems to have strengthened the Indian gold market handsomely in late night trade.
MCX gold for June contract made handsome gains in overnight trade and is expected to open strong today. However, similar bullish sentiments were not in evidence for silver contracts.
Base metals
Weakening rupee helped to restrict the steep decline in base metal prices at the Multi Commodity Exchange yesterday, a report from Geojit Comtrade said.
Meanwhile, global concerns tripped the base metals complex on the London Metal Exchange which closed almost one per cent lower. Weak manufacturing figures from the Euro Zone also weighed down on the sentiments of base metal prices.
Crude oil
Crude oil slipped from the three-day high on concerns over slowing demand from China and rising stockpiles in Cushing, Oklahoma. However, the fall in crude oil prices in the Indian market could be partly stemmed by falling rupee.