 "Metals fall on OPEC's \"no output cut\" decision")
Base metals prices declined around one per cent on Friday after the decision of the Organization of the Petroleum Exporting Countries (Opec) to not cut crude oil output to arrest a price fall.
While spot copper was down by 1.6 per cent to settle at $6,515.5 a tonne, aluminium followed the move to trade at $2,071.5 a tonne, a decline of 1.31 per cent from the previous day. Nickel and zinc also supported the broadbased downward march of base meals to settle at $16,090 a tonne and $2,227 a tonne on Friday from $16,325 a tonne and $2,270.5 a tonne, respectively, the previous day.
Copper on the Multi Commodity Exchange traded a little over one per cent lower at Rs 399.25 a kg. "A sharp plunge in oil futures triggered selling across commodities. Also, a three-week strike ended at BHP Billiton and Glencore’s copper and zinc mine in Peru, which will return to normal operations next week, thereby adding to supply glut in the metal,” said Prathamesh Mallya, senior research analyst, Angel Commodities Broking.
Following base metals, gold and silver recorded a one per cent decline in early London trade but later recovered on brisk buying by stockists, to trade at $1,184 an ounce and $16.07 an oz in afternoon trade. Outflows resumed from the top bullion exchange-traded fund and traders remained cautious before a coming Swiss referendum on central bank bullion assets. Though yet to vote, the referendum will allow the Swiss to buy 1,500 tonnes of gold from the market. Falling oil prices also reduce the inflation hedge appeal of gold, exerting downside pressure on prices. On the MCX, gold was trading lower by 0.5 per cent at Rs 26,123 per 10g. Spot silver prices were also one per cent lower at $16.04 an oz. On the MCX, silver was lower by 0.8 per cent at Rs 35,596 a kg.
“Bullion prices would support the downward move in metals, on growth and optimism in the US economy. The outcome of the Swiss referendum, due this Sunday, will also decide the trajectory,” said an analyst.
Oil prices plunged after Opec decided not to cut production at its meeting on Thursday, leaving its 30 million barrels a day production cap unchanged. Brent crude oil subsequently slumped to a low of $72.78 a barrel (bbl), its cheapest since August 2010. WTI crude hit $69.44, its lowest since June 2010. Brent extended its decline from a four-year low and WTI crude prices are headed for the biggest weekly drop since 2011 as Opec braces for a price war with US shale producers after taking no action to relieve a glut. MCX oil futures are trading higher by 0.1 per cent at Rs 4,294 a bbl.
While spot copper was down by 1.6 per cent to settle at $6,515.5 a tonne, aluminium followed the move to trade at $2,071.5 a tonne, a decline of 1.31 per cent from the previous day. Nickel and zinc also supported the broadbased downward march of base meals to settle at $16,090 a tonne and $2,227 a tonne on Friday from $16,325 a tonne and $2,270.5 a tonne, respectively, the previous day.
Copper on the Multi Commodity Exchange traded a little over one per cent lower at Rs 399.25 a kg. "A sharp plunge in oil futures triggered selling across commodities. Also, a three-week strike ended at BHP Billiton and Glencore’s copper and zinc mine in Peru, which will return to normal operations next week, thereby adding to supply glut in the metal,” said Prathamesh Mallya, senior research analyst, Angel Commodities Broking.
Following base metals, gold and silver recorded a one per cent decline in early London trade but later recovered on brisk buying by stockists, to trade at $1,184 an ounce and $16.07 an oz in afternoon trade. Outflows resumed from the top bullion exchange-traded fund and traders remained cautious before a coming Swiss referendum on central bank bullion assets. Though yet to vote, the referendum will allow the Swiss to buy 1,500 tonnes of gold from the market. Falling oil prices also reduce the inflation hedge appeal of gold, exerting downside pressure on prices. On the MCX, gold was trading lower by 0.5 per cent at Rs 26,123 per 10g. Spot silver prices were also one per cent lower at $16.04 an oz. On the MCX, silver was lower by 0.8 per cent at Rs 35,596 a kg.
“Bullion prices would support the downward move in metals, on growth and optimism in the US economy. The outcome of the Swiss referendum, due this Sunday, will also decide the trajectory,” said an analyst.
Oil prices plunged after Opec decided not to cut production at its meeting on Thursday, leaving its 30 million barrels a day production cap unchanged. Brent crude oil subsequently slumped to a low of $72.78 a barrel (bbl), its cheapest since August 2010. WTI crude hit $69.44, its lowest since June 2010. Brent extended its decline from a four-year low and WTI crude prices are headed for the biggest weekly drop since 2011 as Opec braces for a price war with US shale producers after taking no action to relieve a glut. MCX oil futures are trading higher by 0.1 per cent at Rs 4,294 a bbl.