The US Dollar Index at 76.01 was down 0.02%, while the Euro closed with a gain of 0.04% at $1.4732.
Today, base metals and other commodities are trading firmer on better than expected economic indicators out of China. China’s industrial production grew more than economists estimated in November and exports fell by the least in 13 months, strengthening the recovery of the world’s third-biggest economy. Factory output climbed 19.2% from a year earlier, the statistics bureau said in Beijing. That was more than the 18.2% median estimate in a Bloomberg News survey of 25 economists. Exports slid 1.2%. Consumer prices rose 0.6%, the first increase in 10 months. New loans topped forecasts.
Aluminium—Down 0.4%
Aluminium closed with a loss of $9 at $2,203.
China November aluminum output was 1.36 million tonne, the National Bureau of Statistics said today.
China’s aluminium imports in November were rose to 120.67 K tonne from 86.61 tonne in October.
Aluminium imports are up 172.2% on a year-on-year basis as China’s stimulus led to increased government spending.
Support is at Rs101.55/Rs100.10 and the resistance is at Rs102.90.
Copper—Down 1.94%
Copper closed with a loss of $135 at $6,810.
Orders for Japanese machinery fell in October, adding to signs the nation’s rebound from its deepest postwar recession isn’t strong enough to encourage companies to spend on plant and equipment
China’s import data is supportive for copper. Imports of copper and products by China, the world’s largest consumer, jumped 10% in November compared with the previous month. Shipments increased to 290,158 metric tonne last month, the customs office said today. Purchases jumped 67% to 3.9 million tonne in the first eleven months, it said.
Labor issues are likely to limit downside in short-term. Workers at Xstrata Plc’s Altonorte copper smelter may go on strike on December 23 after management and unions failed to reach a wage agreement in meetings held since last month, while wage talks are ongoing at Codelco’s Chuquicamata mine.
The Shanghai Futures Exchange (SHFE) weekly stockpiles data shows a drop of over 9,000 tonne that is supportive for the metal.
Support is at Rs319.75/Rs317.40 and the resistance is at Rs323.75/Rs327.25.
Nickel—Down 1.78%
Nickel closed with a loss of $295 at $16,275.
Demand from European stainless steel mills remains weak. The counter is not showing much reaction to rising stockpiles at LME warehouses. Consumer and producer stockpiles are still not that high, thus nickel might continue to get support around $16,000 level.
Support is at Rs768.50/Rs755.10 whereas the resistance is at Rs781.20/Rs785.
Zinc—Down 1.81%
Zinc closed with a loss of $42 at $2,270.
SHFE stockpiles rose 1,225 tonne. Cancelled tonnage is stagnant around 1%.
The metal can rise to Rs108 level today.
Support is at Rs105.95.
Lead—Down 0.26%
Lead closed with a loss of $6 at $2,275.
Lead, 2009’s best performer among the main industrial metals traded on the London Metal Exchange, is set to drop as supply increases next year, CRU said.
Lead will average $2,000 a tonne next year, according to CRU. As per CRU anything over $2,000 is a little bit on the bubbly side as the market is in surplus.
Support is at Rs106.40/Rs105.25 and the resistance is at Rs108.05/Rs110.
Precious metals—Slightly up
Precious metals complex closed with minor gains in a volatile session.
Gold—Up 0.21%
Gold closed with a gain of $2.40 at $1,131.
Today the metal is trading higher as the risk appetite is returning on the back of China’s encouraging economic indicators.
It is likely to consolidate in short-term.
Support is at Rs17,085 and the resistance is at Rs17,345.
Silver—Up 0.31%
Silver closed with a gain of 0.055 Cents at $17.405. It fell to as low as $17.135 before recovering along with gold, as the US equities extended their advance.
Support is at Rs27,274 and the resistance is at Rs27,800.
Energy complex—Crude oil down, natural gas up
Crude oil closed with a loss of 0.18% at 70.54, while natural gas at $5.298 was up 8.16%.
Crude oil fell on weaker than expected US weekly jobless data.
China, the world’s second-largest energy consumer, imported 17.1 million metric tonne of crude oil in November 28% more than a year earlier, government data showed. Imports of crude oil in the first 11 months gained 11% to 182.5 million tonne, according to the preliminary data released by the Beijing-based General Administration of Customs today. Crude-oil exports doubled from a year earlier to 420,000 tonne in November. Imports of oil products, including gasoline and diesel, fell 5% from a year earlier to 33.7 million tonne in the January-to-November period and reached 2.38 million tonne last month.
Crude oil may decline next week on speculation that US fuel stockpiles will climb as demand lags behind year-ago levels, a Bloomberg News survey showed.
Crude oil is expected to range-trade.
Support is at Rs3,292/Rs3,256 while the resistance is at Rs3,330/Rs3,376.
Natural gas—Up on inventory report
Natural gas futures surged to an 11-month high after a government report showed a bigger-than- estimated drop in US stockpiles as cold weather spurred demand for the heating fuel. Inventories fell 64 billion cubic feet in the week ended December 04, 2009 to 3.773 trillion cubic feet, the Energy Department report today showed. Analysts forecast a decline of 45 billion, based on the median of 21 estimates compiled by Bloomberg. It was the first drop since March, after supplies rose to a record at the end of November.
Natural gas can rise to Rs251 in the short term.
The support is at Rs240.20.
GOLD UPDATE
According to trade experts scrap and old jewellery sales are likely to increase by 10-15% in the current year because of profit-taking and distress selling, . What might not be known is the active presence of the Muslim community among sellers of scrap and old jewellery. Interestingly, initial findings of a survey that’s under way by Taqwaa Advisory & Shariah Investment Solutions (TASIS) — an organisation providing Shariah advisory and investment solutions within the Indian legal framework — show that community members with monthly savings of Rs 5,000 and above prefer gold as an investment option in Bangalore. “That’s because there are not many Islamic banks or Islamic investment options here,” said Shariq Nisar, director, TASIS. “There are options for investments into, say, listed companies that are debt-free and not in non-compliant businesses such as liquor, tobacco or into lending and borrowing. But there’s a problem here too. For instance, if a debt-free company that is Shariah-compliant invests its surplus into interest-bearing assets, that becomes taboo too. So, though we are endeavouring to make the community aware of investments that are least non-compliant, people are putting away their money into gold and making a profit by sale when the price rises,” he said.
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