Metals are Decline In Domestic Markets On Profit Booking
Weak equity markets and lower potential for upside lopsided metals downwards. Selling pressure was noticed in risky assets with heavy profit booking in every metal from Copper to Aluminium. IMF in its report mentioned that the rise in commodity prices have posted new challenges. IMF said that Commodity prices have increased more than expected, reflecting a combination of strong demand growth and a number of supply shocks.
The world economy is forecast to expand nearly 4.5 percent in both 2011 and 2012, after expanding 5 percent last year. The projections for 2011 and 2012 were unrevised from January estimates.
MCX Copper April contract closed at Rs. 438 per kg, down Rs. 5 or 1%. Lead April expiry closed at Rs. 128 per kg, down 3%. Zinc futures suffered losses of 1.4% and settled at Rs. 112 per kg. On LME, the prices of three month forward Copper contract were at $ 9813.5 per tonne, down $ 37. Aluminium three month forward contract was down $ 22 seen at $ 2683 per tonne at the end of second ring session. A marginal rise in Nickel was seen, the prices settled at $ 30 per tonne, at $ 27405 per tonne.
The Bank of Korea left its policy interest rate unchanged Tuesday, as it decided to further evaluate the financial impact of the Japanese earthquake and tsunami. South Korea's benchmark seven-day repo rate, known as the base rate, remained at 3.0% after a 25 basis point delivered in March. The decision was in line with market expectations.
Get Free Commodity Intraday Tips
