Commodity Market Update (Natural Gas)

Precious Metals are trading positive today after FED kept its interest rates unchanged and continued with its MBS program and Operation Twist. Gold is trading at 1715.10, +13.5 or +0.80% and Silver is at 32.09, +0.47 or +1.5%. Domestic prices are also higher and Gold is up 70 points to trade at 30915.0 per ten grams and Silver is trading at 59387.0, up 387 points. The rupee played the spoiler to some extent and is currently trading at 53.65, up 7 paise against the dollar. The FED’s accommodative stance and continued monetary easing has supported prices since last evening and is expected to do so. Base Metals with the exception of Nickel are trading in red on LME. Nickel is trading at 16849.0 per ton, +98.0 or +0.60% since morning, Copper is down 17.5 or 0.26% at 7837.0 per ton. Copper finds good support at 7819.0 below which prices may move down to 7700.00 odd levels this week. On MCX, Copper is sharply lower and is trading at 424.25, down 3.15 or 0.73%. Crude Oil is trading higher on NYMEX at 86.26 per barrel, up 53.0 or 0.62% and Natural Gas is slightly higher at 3.453 per mmBtu. On MCX, Natural Gas is trading heavily into red though, prices are trading at 185.10, down 3.40 or 1.80% whereas Crude Oil is slightly higher by 8 points at 4657.0. The bias is negative on both the commodities. Expect the markets to remain volatile with tons od data coming in the evening.

Key Economic Releases: Core Durable Goods Order MoM, Durable Goods Order MoM, Unemployment Claims, Pending Home Sales and Natural Gas Storage