Market pulse for key metals and energy: Mangal Keshav

Gold futures fell sharply, but later recovered to close above $1,600 per ounce, as a deal to keep Cyprus’s banks dulled only some of the metal’s safe-haven appeal.

Gold holdings of SPDR gold trust, the largest ETF backed by the precious metal, declined to 1,221.26 tons, as on March 21.
Silver holdings of ishares silver trust, the largest ETF backed by the metal, increased to 10,688.56 tons, as on March 22.

The dollar index, which measures greenback’s moves against a basket of six major global currencies, traded as low at 82.146 from 82.387 in North America on Friday.

The euro declined to a session low versus the US dollar and Japanese yen on Monday, as comments made by the head of the euro zone finance ministers spurred broad risk aversion.

Cyprus clinched a deal with international lenders to shut down its second-largest bank and inflict heavy losses on uninsured depositors, including wealthy Russians, in return for a 10bn Euro ($13bn) bailout.

A rescue program agreed for Cyprus on Monday, represents a new template for resolving euro zone banking problems and other countries may have to restructure their banking sectors, the head of the region's finance ministers said.

The Federal Reserve’s bond-buying program is an “enhance-thy-neighbor” policy and not designed to spark a competitive devaluation of the dollar, Fed Chairman Ben Bernanke told an international audience on Monday.

Copper declined the most in 4-sessions on COMEX, on speculation that metals demand will slow as China’s government will take steps to tame inflation and as global growth weakens.

Stockpiles of copper at warehouses monitored by the London Metal Exchange expanded 565,350 tons, the highest since October 2003, as per LME data. Inventories have jumped 77% this year.

Crude oil futures closed at their highest level in more than a month, on hopes that the Cyprus rescue deal will help stabilize European demand.

Natural gas futures closed lower after trading in a narrow range and again failing to breach $4 per mmbtu threshold before shedding all its gains.