Crude has immediate support at USD 132/bbl on lower side

CNBC-Awaaz, Commodities Editor, Mainsha Gupta : It is volatile as ever as how we have seen the Indian markets also opened here. In the Asian markets the volatility continues there crude is holding USD 138/bbl at this point in time but the jitteriness can be expected ahead of the US weekly inventory data where there are expectations of crude and gasoline inventories to see a decline. This would be for the 12th week if that comes and it might give us some support but the prices are headed on the lower side USD 135/bbl has been touched twice and USD 132/bbl on the lower side is an immediate support but not ruling out more highs in the coming couple of weeks there.

On MCX, sharp declines is what we saw Rs 250 per barrel of a decline. There is bit of bargain buying at this point in time we have seen Rs 50 of gain as the markets have reopened today in the morning here.

Bullion prices continue to trade on the higher side we saw record highs in case of gold and silver in the Indian markets yesterday and in the international markets we saw gold go all the way to USD 989/oz on the higher side, silver has gained nearly 27% in 2008 alone. Inflation concerns, weak US dollar and even though the crude prices have eased off its record highs, the strength continues in case of gold prices a bit of profit taking in the Asian markets right now but then we have seen USD 25 of a again in the markets yesterday.

On MCX, yesterday it gained by Rs 80 in case of gold and prices have seen a bit of profit taking, Rs 50 down is how MCX August contract is opened today.

Good profit taking in case of base metal prices also yesterday aluminium declined by 3%, copper was 2% down, zinc declined by 8% all these metals have made very hefty gains in the last week and this week because of selling off because of profit taking we have seen lot of profit taking happened in base metal prices as well. China is not buying imports have been down by 19% in case of copper as far as China has mentioned and the inventories also have gained up in the last five days and that also is putting pressure on the prices.