Precious Metal Decline Energy and Gas Prices Rebound in March 2012

Precious metal prices decline, silver was the biggest loser at 3.09% while natural gas posted the most gains at 1.21%. Base metals remained mixed with copper and zinc posting gains while lead and nickel ended in the red.

-Crude oil markets were relatively calm for the week considering that the whole Iran issue was the focus point over the past months. This was reflected in prices, which moved down marginally. However, conditions still favour strong oil prices.

-Natural gas prices rebounded with a decent 1.21% gain. US weather has been forecasted to be warm over the coming weeks, which makes it difficult for gas prices to record any strong upmoves.

-In China, February trade deficit of $31.5 billion was its biggest ever since 2000, sparking concerns that the Chinese economy may indeed be heading to a major slowdown. Commodities like base metals and crude oil came under pressure during the week.

-In India, the Union Budget 2012/13 failed to impress any critic. The budget was focused more towards controlling the widening fiscal deficit, the target for the next fiscal year being at 5.1% of GDP. Current year growth is projected to be at a disappointing 6.9% but 2012/13 is expected to see growth at 7.6%.

-In the US, US Fed chairman Ben Bernanke stated his intention to continue the lose monetary policy. Industrial production for February failed to record any growth after a marginal 0.4% growth in January. Retail sales in February rose to 1.1% while Business inventories rose to 0.7% in January.

-In the Eurozone, investors continue to watch out on the impact of the CDS triggered by the Greek default. Trade balance in the region declined to $5.9 billion in January from $7.4 billion in December

-Precious metals declined for the week with silver moving down by more than 3%. Ben Bernanke disappointed the precious metals bulls and did not mention the possibility of QE3. Instead, he expressed belief that the is economy was improving. Weak Chinese trade balance also proved bearish for silver since China is a major consumer of the metal.

-Base metals were mostly under pressure despite copper and zinc posting gains, mostly on the back of China's weak trade balance.

-Copper inventories at Shanghai exchange monitored warehouses are expected to result in lower copper imports in March and April, Goldman Sachs reported.

-A major zinc mine in China remains closed and is expected to be bullish for Chinese zinc exports if the closure extends beyond 3 months.

Category: copper prices 2012, energy trading march 2012, gas prices 2012, Info Commodity, natural gas, precious metal prices, silver price 2012