Spices shown the door

Updated: Jan 6 2006, 06:03am hrs
The bears strangle hold in the market continued on to another day as the markets had a day that they can forget in a hurry. All the major commodities were either shown the door or struggled to hold on their gains. The major players leading the way were the king and queen of spices who struggled for different reasons. While pepper that was having a sorry tale of late and was living in the edge struggled as the uncertainty will be continuing for another week in all probability. The reason being the Marketfed auction turning out to be a damp squib with no one taking part in the proceedings. Rubber also gave solid company for the spices who and lost more than a % as there were no buyers at higher levels. The tumbling international prices were also not of much help either.

Market watch

Gold seems to be looking for some support around USD530 an ounce mark during European trades. It seems as if new money is not flowing in to the market. Few US economic data releases are due today but they may not play a bid role in the gold market at the moment. But few market players seem to have started looking at the dollar-gold inverse relation gradually after a gap of almost three-months. The Federal Reserve is most probably hinting to end its 18-month campaign of raising interest rates. The metal has not breached $535 an ounce mark successfully or comfortably. The recent speed of rise and fall in prices hints that there might be very few players who have kept the prices intact. There has been little buying on falls. Silver was down 8 cents and quoting at $9.04/9.07 an ounce in London. It was a forgettable day for the giants of commodity markets entered the ranging mode with the exception of mentha oil. Menthaoil even though not ranging was struggling through out and ended the day with a loss of more than 3% for the various contracts. The speculative giants had a poor day at the office with none of the participants making an impact.

Courtesy: Geojit Commodities