MUMBAI: Since the beginning of today’s trading session we have observed narrow range trading on the commodity counters, especially crude oil as investors have stayed focused to wider economic data for signs of a recovery in the global economy and a potential rebound in flagging energy demand.

Meanwhile, gold has bounced back into positive zone helped by softer US dollar and a marginal pick-up in physical demand. Base metal counters have also seen some improvement.

Meanwhile, US crude oil futures have gained above $72 a barrel level on weather concerns.

Another winter storm is seen dumping more snow on the East Coast of US which could trigger higher fuel demand.

Already, parts of Virginia, Maryland, Pennsylvania and Washington are blanketed in about three feet (1 meter) of snow, knocking out power for tens of thousands of Americans and forcing government offices to close.

Benchmark oil for March delivery gained 15 cents to trade at $72.04 a bbl after having settled 70 cents higher at $71.89 a barrel on Monday.

Oil rose nearly 1% on Monday, after three sessions of losses, as a weaker US dollar, cold weather and geopolitical disputes provided support.

Crude oil futures have traded choppy, as markets are expecting stronger build-up in US crude oil inventories.

Gold prices advanced above $1,070 per ounce, but sentiment continued to be hurt by worries over fiscal stability in Europe, curbing appetite for riskier assets such as commodities.

Spot gold was at $1,071.10 per ounce, up 0.5% from New York’s notional close of $1,062.80. On Friday, spot gold traded as low as $1,043.75, its lowest since November 2, as the euro fell on fears over the outlook for some euro zone economies.

US gold futures for April delivery gained 0.4% to $1,070.70 per ounce, compared to $1,066.20 on the COMEX division of NYMEX. Gold prices eased on Monday, weighed down by technical selling and fund liquidation amid uncertain economic sentiment.

Concerns about the fiscal stability have rattled global markets over the last two weeks.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings were at 1,106.38 tonnes as of February 8, unchanged from the previous business day.

The holdings hit a record high of 1,134.03 tonnes on June 1.

Base metal counters such as copper and zinc erased in early losses, dragging their Shanghai counterparts higher.

LME copper rallied as much as 1% to $6,455.25, while zinc rallied almost 3%, helping to pare last week's declines on a combination of profit taking by short position holders and bargain hunters.

On Friday, LME copper fell to $6,225, its lowest in more than three months. LME copper last stood at $6,520, implying a gain of around 1.3%.

Meanwhile Morgan Stanley in its report has said, copper remains the best pick among base metals on increasing emerging-market demand and supply constraints as the global economy recovers.

The domestic commodity markets pared some of the early losses tracking global trend. Also, the rupee climbing back from its seven-week low has cut commodity investment appeal.

On MCX, crude oil contract for near-month settlement was last quoting 0.1% lower at Rs 3,361 a barrel, off its early high of Rs 3,364. The contract started the session at Rs 3,358.

MCX Gold for April settlement contract maintained softer tone despite stronger global cues. After making a quick dash to Rs 16,265 per 10 gram, the contract has retraced to current level of Rs 16,262 per 10 grams.

MCX Silver March settlement contract traded almost flat at Rs 24,463 per kg, after having opened the session at Rs 24,159.

Base metal counters returned to positive zone on a short-covering. Copper led most metal counters higher.

MCX copper for February settlement traded 0.8% higher at Rs 303.25 per kg.

MCX zinc February contract maintained strong posture and was last quoting 1% higher at Rs 95.50 a kg, not far off from its early highs.