Market recuperates

Updated: May 18 2006, 05:30am hrs
After the amazing recovery seen on Tuesday the markets continued in the same vein and once again were highly volatile.

Gold rose in London, heading for the biggest gain since the terrorist attacks on the US on September 11, 2001, as the dollar fell against the euro, making the precious metal more attractive as an alternative investment. Bullion, which fell the most since 1993 two days ago after a nine-week rally, gained almost 39% this year while the dollar weakened 8.9% against the euro. The dollar is trading near a one-year low versus the euro on expectations the US Federal Reserve (Fed) will pause its interest-rate cycle after 16 straight increases.

Copper and zinc gained for a second day in London on speculation demand from China will underpin a rally in metal prices while crude oil traded below $70 a barrel in New York amid signs the European Union may propose a new plan to resolve Irans nuclear dispute with the United Nation.

Market watch

While the markets were going gaga over the metals there were certain agri commodities that were making a mark for them selves as the speculative giant was unleashed. What was missed during the crash was the 900-point swing witnessed in guar seed as the commodity was back to its speculative best over the past one week and Wednesday was no exception.

The spot prices that fell never helped the commodity while mentha oil on the other hand went up following the spot market that went up. Mentha oil prices ruled Rs 10-21 higher among various spot markets on Wednesday.

Spices was another commodity that was moving with jeera dominating the chart. It came down by nearly 3% with good support from turmeric. Cilli ended the day in green after spending the last few days in red along with pepper and cardamom. Sugar went up and came down in a manner, not seen in the commodity before.

Courtesy: Geojit Commodities