Market Updates(Metals & Energy)

Bullions: Bullion counters may hold gains tracking rebound in international prices. A modest gold rise was eclipsed by a 4% surge in silver on COMEX, with investors optimistic about the technical picture and prospects for a Greek deal soon with private bondholders. Bullion gained even as the euro and other commodities fell, after banking officials told Reuters the agreement between Greece and its creditors was near, which could prevent the debt-stricken nation from tumbling into a chaotic default. Gold’s ratio to silver – the number of silver ounces needed to buy an ounce of gold – slipped to two-month low on Friday at 52 as silver prices outperformed gold.

Base Metals: Copper futures on national bourse may trade with a weaker bias tracking weakness in international prices. Copper retreated from a fresh 4-month peak on Friday, hit by a weaker euro and disappointing data from China that signaled a sluggish start for the metal-consuming giant’s manufacturing sector. In New York, the key March COMEX shed 5.55 cents or 1.5 percent to settle at $3.7450 per lb, after touching its own four-month peak at $3.8340.

Energy: Crude oil futures may trade sideways with a weaker bias. Oil prices fell on NYMEX, pressured by economic uncertainty ahead of a possible debt deal in Greece, concerns about China’s sluggish manufacturing sector and weak U.S. petroleum demand. News that major powers seeking to negotiate an end to Iran’s suspected pursuit of nuclear weapons are soon to lay out what Tehran would need to do return to talks added to pressure on oil prices. EU ministers meet on Monday and are expected to announce sanctions on importing Iranian oil. Natural gas futures may remain sideways. U.S. natural gas inventories are at record highs for this time of year, nearly 20 percent above the same week last year. Moreover, U.S winter this year has so far been the fourth warmest on record, according to forecaster MDA EarthSat, adding to the pressure already provided by record production.

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