Commodity Trading Tips Of 26.02.2015

Precious Metals

Gold: At the MCX Gold futures for April 2015 contract is trading at Rs 26,289 per 10 gram, up by 0.88 percent after opening at Rs 26,079, against the previous closing price of Rs 26,059. It touched the intra-day high of Rs 26,301 till the closing.

Base Metals

Crude Oil futures fell deeper into the bear terrain in the domestic market on Wednesday ahead of government data which may show that US crude oil stockpiles expanded from a record last week, threatening to worsen a global supply glut. EIA data may show today that US crude oil stockpiles rose by 3.75 million barrels last week, expanding further from a record high 425.6 million barrels in the prior week. The American Petroleum Institute (API) said that US supplies rose 8.9 million barrels in the week ended February 20, 2015.

At the MCX, Crude oil futures, for the March 2015 contract, is trading at Rs 3,076 per barrel, down by 1.47 per cent, after opening at Rs 3,100, against the previous close price of Rs 3,122. It touched an intraday low of Rs 3,071 till the closing.

Copper futures surged in the domestic market on Tuesday as investors and speculators booked fresh positions in the industrial metal amid signs of tighter global supply after BHP Billiton Ltd., the world’s biggest mining company unveiled plans to cut project spending to the lowest level since 2010, following a similar announcement by Rio Tinto Group, Glencore Plc and Freeport-McMoran Inc. Citigroup expects an increase in mined copper supplies to slow to 1.3 per cent in 2015 from 2 per cent last year. Copper stockpiles tracked by the London Metal Exchange (LME) fell 1.4 per cent to 295,500 tons, the biggest fall since May 28, 2014. A weaker dollar boosted the demand for the metal as an alternative asset. Weaker greenback makes copper cheaper for those holding other currencies, thus dimming demand. Copper may extend gains today as a rebound in Chinese manufacturing lifts demand outlook.

At the MCX Copper futures for February 2015 contract closed at Rs 362.40 per 1 kg, up by 1.83 per cent after opening at Rs 354.45, against the previous closing price of Rs 355.90. It touched the intra-day high of Rs 366.85 till the closing.