Crude Jumps Around 5% On MCX
MCX Crude oil futures jumped on positive global cues. Oil rose as global equities edged up and bargain buying lifted the commodity well above its 14 month low. The WTI Crude oil futures are currently quoting at $48 per barrel, up 2.78% on the day. MCX Crude oil futures ended up 4.80% at Rs 3419 per barrel. Baker Hughes reported that the number of oil and gas rigs in the US fell this week by 1 to 790, with the total oil and gas rigs clocking in at 248 fewer than this time last year. This also boosted oil. Meanwhile, the Indian Rupee witnessed sustained losses as the local equities stayed slippery and worries over tepid domestic economic growth stayed in place. INR closed at 72.67 per US dollar, sliding heavily for a second session. The INR dropped 43 paise on the day and tested lowest mark since October 2018 following this tumble.
MCX Gold Ends Around Rs 41900 Per 10 Grams
COMEX Gold futures rebounded sharply following a heavy slide in the last session though massive gains in US equities capped the upside for the metal. Stocks eyed a synchronized global monetary stimulus in near term as the coronavirus continued to spread. DOW jumped 5% amid a sharp recovery. The COMEX Gold futures tested around two week low under $1570 per ounce on Friday but edged up impressively as the coronavirus continued to accelerate its spread across the globe. The global death toll from the coronavirus outbreak hit pass 3000 mark today. COMEX Gold futures also eyed the slide in the US dollar and broke above $1610 per ounce before easing. The counter currently trades at $1599 per ounce, up 0.30% on the day. MCX Gold futures closed at Rs 41902 per 10 grams, up 1.22% on the day.
Copper Hovers Around $2.60 Per Pound In Asian Trades
COMEX Copper rose sharply yesterday and added to these gains hit a ten day high of $2.61 per pound today. However, tepid economic data capped the upside in the red metal. The Organization of Economic Co-operation And Development (OECD) noted today that the coronavirus (COVID-19) outbreak has already brought considerable human suffering and major economic disruption. On the assumption that the epidemic peaks in China in the first quarter of 2020 and outbreaks in other countries prove mild and contained, global growth could be lowered by around 0.50% this year relative to that expected in the November 2019 Economic Outlook, says OECD. Accordingly, annual global GDP growth is projected to drop to 2.4% in 2020 as a whole, from an already weak 2.9% in 2019, with growth possibly even being negative in the first quarter of 2020. The US ISM said its purchasing managers index edged down to 50.1 in February from 50.9 in January. The Caixin/Markit Manufacturing Purchasing Managers’ Index showed China’s factory activity contracted in February, coming in at a record low of 40.3. MCX Copper futures added 1.70% to close at Rs 429 per kg.
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