Commodity News- 20-july-2011

ZINC SOARED ON THE BACK OF EASING TENSION ON DEBT CRISES

Zinc prices gained on falling Dollar and rising EURO on the back of easing tensions of US quantitative easing. Dollar has so far lost 82 pips and is trading at 1.418 per EURO. The recovery in metals was also due to the fact that the markets were optimistic relating to the demand from China. Demand generation in domestic markets also supported the metal used in galvanization.

GOLD AND SILVER SPARKELED ON TUESDAY IN INDIA AS THE RUPEE HARDEN AGAINST THE DOLLAR

Gold traversed its previous record level of Rs. 23,270 thumped on July 16. Gold futures on the Multi Commodity Exchange (MCX) retreated from an early record on Tuesday afternoon due to a stronger rupee, which makes the dollar-quoted yellow metal cheaper. Silver too maintained its recent traction, rising for a third consecutive day. It added Rs.1,500 to Rs. 59,500 per kg, on increased off take by industrial units and coin makers. It has gained Rs. 1,500 in the last two trading sessions. 

BASE BOOSTED DUE TO MANY REASONS ON WEDNESDAY

Base metals traded significantly higher yesterday after President Barack Obama suggested that progress was being made toward a $3.75 trillion deficit reduction deal centered around entitlement reform and hopes on new deal for Greece and China leading index indicating growth in its economy expansion.

The euro firmed against dollar amid the expectations on Germany and the European Central Bank, will come to terms on a new deal for Greece. Dollar ended the session at 75.145 against the basket of six currencies, down 0.29%.