Copper prices fell by 0.18 per cent on Thursday

Copper prices fell by 0.18 per cent on Thursday at the domestic markets after euro zone service sector activity fell unexpectedly in the last quarter signaling weak sentiment in the region which reduced the demand outlook for the metal. In a report, markit said that Euro Zone Services PMI fell to 53.7, from 53.9 in the preceding quarter. At the MCX, copper futures for April 2015 contract were trading at Rs.369.60 per 1 kg, down by 0.18 per cent, after opening at Rs. 370.85 against the previous closing price of Rs. 370.25. It touched the intra-day low of Rs. 369.45 till the trading.

Mentha oil prices fell by 0.42 per cent on Thursday at the Multi Commodity Exchange (MCX) as a result of the increased arrivals of the commodity in the physical market from the major producing belts in Uttar Pradesh. At MCX, Mentha oil futures for March 2015 contract, at MCX, were trading at Rs. 803.30 per kg, down by 0.42 per cent after opening at Rs. 808.80 against the previous closing price of Rs. 806.40. It touched the intra-day low of Rs. 798.10 till the trading. (At 2.50 PM today). Sentiment weakened further as the investors indulged in profit-booking in the midst of a fall in demand in the spot market. About 80 per cent of the crop in India comes from Uttar Pradesh (Rampur, Moradabad, Bareilly, Barabanki and Badaun) and the balance 20 per cent from Punjab, Himachal Pradesh and Haryana.

Gold prices fell by 0.09 per cent on Thursday at the domestic markets after India unexpectedly cut its benchmark interest rate. India's central bank lowered its interest rate 0.25 per cent to 7.5 per cent, marking its second rate cut in months. A lower interest-rate is often regarded as a positive sign for gold, as it decreases the price of holding onto the precious metal. Further, a strong dollar reduced the appeal of the bullion as an alternative asset. Stronger dollar makes the precious metal expensive for those holding other currencies, thus reducing demand. Gold futures for April 2015 contract, at MCX, were trading at Rs. 26,522 per 10 grams, down by 0.09 per cent after opening at Rs. 26,565 against the previous closing price of Rs. 26,547. It touched the intra-low high of Rs. 26,516 till the trading. 

Lead prices rose by 0.58 per cent on Thursday at the domestic markets due to the decline in the lead stockpiles at the London Metal Exchange (LME) on account of the strong demand for the commodity. LME lead stocks fell by 375 metric tonnes to 213875 metric tonnes as on March 5, 2015. At the MCX, Lead futures, for the March 2015 contract, is trading at Rs 111.90 per kg, up by 0.58 per cent, after opening at Rs 110.90, against a previous close of Rs 111.25. It touched an intra-day high of Rs 112.05 till the trading. (At 3.31 PM today). Sentiment improved further as a result of high demand for the commodity from battery-maker in the spot market in the midst of strong overseas trend.

Zinc futures closed higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the industrial metal after services activity in China expanded at a quicker pace in February, signaling a pickup in the world’s biggest economy, lifting the demand outlook for industrial metals. The China services gauge climbed to 52 in February from 51.8 in January, with a reading above 50 signaling expansion. Moreover, a combined gauge measuring Euro area manufacturing and services rose to a seven-month high of 53.3 in February from 52.6 in January, signaling strong momentum in the 19-member economy, supporting zinc. At the MCX, Zinc futures for March 2015 contract closed at Rs 126.60 per 1 kg, up by 0.80 per cent after opening at Rs 125.75, against the previous closing price of Rs 125.60. It touched the intra-day high of Rs 127.15 till the closing.