Aluminium futures were trading lower during the noon trade in the domestic market on Wednesday as speculators reduced their exposure amid tepid demand in the spot market. Analysts said offloading of positions by participants owing to slackened demand in the spot market mainly influenced aluminium prices at futures trade.
At the MCX, aluminium futures for August 2017 contract is trading at Rs 131.10 per kg, down by 0.64 per cent, after opening at Rs 131.60, against a previous close of Rs 131.95. It touched the intra-day low of Rs 130.80 (at 13:05 hours).
Lead futures were trading lower during the afternoon trade in the domestic market on Wednesday as participants reduced their exposure amid subdued demand from consuming industries in the spot market. Market men said the weakness in lead futures was due to a sluggish demand from battery-makers at the domestic markets.
At the MCX, lead futures for July 2017 contract is trading at Rs 153.45 per kg, down by 0.20 per cent, after opening at Rs 153.55, against a previous close of Rs 153.75. It touched the intra-day low of Rs 153.10 (at 12:05 hours).
Gold prices inched up on Wednesday as the dollar slipped after remarks by U.S. President Donald Trump raised fears of a government shutdown, while investors awaited further direction from a key annual central banking conference this week.
Spot gold was up 0.1 percent to $1,285.30 an ounce by 0555 GMT, after shedding 0.5 percent in the previous session.
U.S. gold futures for December delivery were unchanged at $1,290.90 per ounce.
The dollar edged down against the yen following President Trump’s remarks.
“If we have to close down the government, we are building that wall,” Trump told supporters at a rally in Arizona.
Elsewhere, markets were bracing for an annual gathering of central bankers at a meeting in Jackson Hole, Wyoming on Thursday and Friday, where Federal Reserve Chair Janet Yellen and European Central Bank chief Mario Draghi are set to deliver speeches on the outlook for monetary policy and interest rates.
Oil prices fell on Wednesday, weighed down by concerns of oversupply as Libyan output improves and as U.S. gasoline inventories rose despite the peak summer driving season.
Brent crude futures, the international benchmark for oil prices, were at $51.64 per barrel at 0721 GMT, down 23 cents, or 0.4 percent, from their last close.
U.S. West Texas Intermediate (WTI) crude futures were at $47.59 a barrel, down 24 cents, or 0.5 percent.
Libya’s Sharara oil field, the country’s largest, was gradually restarting on Tuesday after a shutdown, although instability in the country means that output there could be volatile, traders said.
Sharara recently reached output of 280,000 barrels per day (bpd), but closed earlier this week due to a pipeline blockade. Its production is key to Libya’s oil output, which surged above 1 million bpd in late June, about four times its level last summer.
Libya’s rising output is a headache for the Organization of the Petroleum Exporting Countries (OPEC), which together with non-OPEC producers including Russia has pledged to hold back around 1.8 million bpd of supplies between January this year and March 2018 to tighten supplies.
However, OPEC has so far fallen short of its pledge, in part due to Libya’s strong output. The OPEC-member has been exempt from cuts.
“Sentiment towards oil remains bearish amid oversupply fears and the possible threat of OPEC’s supply cut deal falling apart,” said Lukman Otunuga, analyst at futures brokerage FXTM.
The next meeting of a ministerial committee of OPEC and non-OPEC states to discuss their production pact has been proposed for Sept. 22.
Copper futures were trading lower during the noon trade in the domestic market on Wednesday as speculators indulged in reducing their positions to book profits. Analysts attributed the fall in copper prices at futures trade to profit-booking by participants at current levels coupled with low demand at the domestic spot markets.
At the MCX, copper futures for August 2017 contract was trading at Rs 420.75 per kg, down by 0.31 per cent, after opening at Rs 421.25, against a previous close of Rs 422.05. It touched the intra-day low of Rs 420.35 (at 12:00 hours).
Nickel futures were trading lower during the afternoon trade in the domestic market on Wednesday as investors and speculators exited their bets in the industrial metal on the back of ease in demand.
At the MCX, nickel futures for August 2017 contract is trading at Rs 726.20 per kg, down by 0.66 per cent, after opening at Rs 729.10, against a previous close of Rs 731. It touched the intra-day low of Rs 723. (at 13:02 hours).
Zinc futures were trading higher during the afternoon trade in the domestic market on Wednesday as speculators created fresh positions on pick-up in demand from consuming industries at the spot markets.
Market analysts attributed the rise in zinc futures to fresh bets created by participants on the back of rising demand at the domestic spot market. At the MCX, zinc futures for August 2017 contract was trading at Rs 200 per kg, up by 0.20 per cent, after opening at Rs 201.70, against a previous close of Rs 199.60. It touched the intra-day high of Rs 200.50. (at 14:05 hours).