COMMODITY UPDATES

Base metals are mixed in tight ranges as the market remains focused on a meeting of eurozone finance ministers regarding Greece's bailout package. The meeting is scheduled to start later in the global trading day. Last week business confidence data and fall in Dollar elevated the base metals.
Germany business climate index increased to 101.4 in October compared to 100 in the month of September. In France, the business confidence rose more than expected. INSEE said that French Business Confidence increased to 88 in the quarter ending September 2012, compared to 85 in the previous quarter.
In US, Federal Reserve Chairman Ben Bernanke warned on the US budget crisis. Bernanke remained worried on the pace of recovery and improvement in jobs markets at a slower pace. Bernanke remained worried on the percentage of budget deficit. The budget deficit now stands at 7 percent of the GDP.
World Bureau of Metal Statistics (WBMS) showed that copper market recorded a deficit of 267000 tonnes in January to September 2012 which follows a surplus of 248000 tonnes in the whole of 2011. The total reported stocks rose by 3700 tonnes during September and ended the month 129000 tonnes lower than at the end of 2011.
World Lead market was in surplus of 11000 tonnes in January- September 2011. Lead markets were in surplus of just 600 tonnes in full year ended 2011. The total stocks at the end of September were 86200 tonnes lower than at the end of 2011.
In currency markets, Dollar slowed sharply down against the Euro ending at 1.2977 compared to 1.2827 on Monday. Dollar is now seen trading at 1.2956 against Euro and is expected to bring some profit booking in the metals space.
LME Copper ended the last session at $ 7692 per tonne, down $ 42 per tonne. MCX Copper ended at Rs 431 per kg, compared to Rs 425 per kg at the beginning of the week. MCX Nickel closed at Rs 920 per kg last week compared to Rs 916 per kg on Monday. LME Nickel three month forwards closed at $ 16595 per tonne, down $ 130 per tonne.

COMMODITY UPDATES

Gold futures are little changed since the morning as the floor trading remains shut on occasion of the Thanks Giving Day in US.

Since last few days gold has traded in a quite tight range as the as investors are clueless with regard to congressional leaders’ negotiations on the deficit reduction issue and unabated debt crisis in the euro zone.

An ounce of gold on COMEX division of New York Mercantile Exchange is trading up $5.5 at $ 1729.1 in early European session today.

COMEX division of the New York Mercantile Exchange will remain closed on Thursday on account of Thanksgiving Day and will close earlier than normal trading hours on Friday.

According to a data provided by the International Monetary Fund, central banks from emerging markets continued to increase their holdings in October. Brazil, Turkey and Kazakhstan, all increased their gold holdings with an aim to diversify their foreign kitty in the back drop of growing macroeconomic uncertainty and ultra period of ultra loose monetary policies-which threatens currencies debasement.

On the data front today, Chinese manufacturing activity expands for the first time in more than a year in November, preliminary HSBC data show, suggesting the economy may really be in recovery mode at last.

MCX December gold futures are trading up by nearly Rs 15 at Rs 31827 per 10 grams. The counter may face a resistance near Rs 31900 levels in the near term.