Chemical Guide

The metal gained 0.7 percent this week after turmoil in Libya radiation leaks from a damaged nuclear reactor in Japan and Europe’s lingering debt crisis spurred demand for an investment haven

US gold futures rose to record higher before falling and oil futures fell this week while the really shining commodity was natural gas which continued to post gains thanks to Japan nuclear crisis . Gold futures had risen to an all time high of US$1 448.60an ounce but fell back on strength of dollar and equities. Silver continued to post gains on safe haven demand and industrial fabrication trends to reach its higher level of US$38.18 in recent times before falling back to US$37 levels. Precious Metals Gold dropped due to hit by a dollar spike after several top Federal Reserve officials said the Fed is unlikely to extend its bond buying stimulus program beyond a planned US$600bn. Silver also declined as the dollar rose against a basket of major currencies and U.S. equities gained.

Gold may extend gains from a record as fighting in Libya and Europe’s debt crisis spur demand for an alternative investment a survey found. The metal gained 0.7 percent this week after turmoil in Libya radiation leaks from a damaged nuclear reactor in Japan and Europe s lingering debt crisis spurred demand for an investment haven. On Friday gold futures for April delivery fell US$8.70 or 0.6 percent to settle at US$1 426.20 on the Comex in New York. The price has climbed 30 percent in the past 12 months. Silver futures for May delivery dropped 32.6 cents or 0.9 percent to US$37.049 an ounce. Yesterday the price reached US$38.18 the highest in 31 years. The metal jumped 5.7 percent this week. In Indian market MCX April Gold Futures opened the week at 20879 and down 1.36% to 20788 after hitting a high of 21045 while June contract dropped 0.74 % to 21072 per 10 gms. MCX Silver May opened this week at Rs. 53245 and ended higher by 3.86% up at Rs. 55302.

Crude Oil Crude oil fell in New York this weekend as crude failed to breach technical resistance at its 30 month high and on concern that the European debt situation and the crisis in Japan will curb fuel demand. On Friday U.S. crude futures ended lower on profit taking. Libya s crude exports may be curbed for months because of sanctions and damage to production facilities the International Energy Agency said March 15. On Friday Crude for May delivery fell 20 cents to settle at US$105.40 a barrel on the New York Mercantile Exchange. Brent crude for May settlement dropped 13 cents to US$115.59 a barrel on the ICE Futures Europe exchange in London. At MCX Crude oil April contract up from Rs. 4660 to Rs. 4742 after hitting a high of 4850 whereas the May contract gained by 0.79 per cent to Rs. 4799. India s crude oil output increased 12 percent in February rising for the 15th straight month after production by non state companies including Cairn India Ltd. (CAIR) surged. Base Metals Copper ended lower in the weekend extending a phase of consolidation from this week s two week highs as investors continued to weigh the economic impact from Japan s nuclear catastrophe and a worsening debt crisis in Europe.

A drop in U.S. consumer sentiment to its lowest level in more than a year doused more cold water on the economically sensitive industrial metal s mid week surge suggesting the recent rally was overdone. London Metal Exchange (LME) three month copper CMCU3 fell US$30 to close at US$9 685 a tonne. COMEX May copper dipped 0.55 cent to end at US$4.4190 per lb after dealing between US$4.3990 and US$4.4535. Global No. 1 copper producer Chile s Codelco said its 2010 output dipped but should be steady this year and expects strong Chinese demand Japan s recovery after a natural disaster as well as new uses to stoke demand. In India at MCX copper April contract up from Rs. 434.90 to Rs. 439.10 per Kg after hitting a high of 441.75 whereas the June contract ended higher by 1 per cent to Rs. 444.70. China’s refined copper production is expected to gain in March building on a nearly 8 percent rise in the first two months of 2011 from the same period a year ago which could raise local supply and cut import demand.

Smelters are seen ramping up after the Lunar New Year holiday break an analyst said despite high copper stocks. Natural Gas Natural gas futures rose to the highest level in more than seven weeks as forecasts showed colder than normal weather boosting demand for the heating fuel. Gas gained for a third week as the Climate Prediction Center forecast cooler than usual weather for the eastern U.S. from March 30 to April 7. The low temperature in New York will be 26 degrees Fahrenheit (minus 3 Celsius) tomorrow 12 degrees below normal according to AccuWeather Inc. in State College Pennsylvania. Natural gas for April delivery advanced 15.9 cents or 3.8 percent to US$4.403 per million British thermal units on the New York Mercantile Exchange. The futures increased 5.6 percent this week. U.S. gas production advanced 1.1 percent in December from November according to the Energy Department s monthly EIA 914 report. Output in the lower 48 states increased for a second month increasing 0.2 percent to 66.76 billion cubic feet a day from a revised 66.6 billion. In India at MCX Natural gas April contract closed higher by 5.11% to Rs. 203.30 May contract prices rose from Rs. 199.90 per Kg to Rs. 208.20 up by 4.15 per cent.

Source: indiainfoline.com