MUMBAI: Commodity markets turned choppy in today's session, as the dollar – the key driver of commodity prices – witnessed high volatility. A surge in inflation numbers and persistent rise in industry output weighed on the dollar. Commodity prices gyrated between positive and negative zones.

Crude oil prices bounced back into the positive zone after having spent most of the morning session below $82/bbl mark. Crude oil prices fought their way up even as underlying factors applied pressure. Apparently, after staying depressed for an early trading period, NYMEX crude for April delivery bounced back above $80 a barrel mark. It has since retraced to current level of $81.99 a barrel, down 10 cents.

On Wednesday, the contract had risen as high as $83.03, the highest since $83.95 on January 11, after the US Energy Information Administration data showed a surprise drop of 2.9 million barrels last week.

Similarly moves were spotted on the bullion counters. Gold and silver prices moved in tight range tracking currency markets. Gold regained some strength after falling to its weakest in nearly two weeks the previous day, but sentiment looked weak as prices stayed below their 50 and 100-day moving averages.

Spot gold was at $1,105.40 an ounce, marginally down from New York's notional close on Wednesday, when it fell to as low as $1,102.85 an ounce, its lowest level since February 25. Gold futures for April delivery were also weak at $1,106.80 an ounce, having settled 1.3% lower on Wednesday on heavy liquidation and as safe-haven buying on Greek sovereign debt worries subsided.

Meanwhile, copper prices extended losses shrugging off yesterday's surge in imports. Higher Chinese inflation numbers coupled with strong industry output data suggested possible withdrawal of stimulus package earlier than expected which will also mean lower demand for industrial metals.

Three-month copper on the London Metal Exchange (LME) fell $70 to close at $7,440 a tonne on Wednesday. In late trade the market ticked down further to $7,437. LME copper last stood at $7,412 a tonne.

Domestic commodity counters moved in tandem with the global markets. The rupee weakening against the dollar, aided recovery of most counters. Crude oil prices surged almost 1%. MCX crude oil futures for March settlement gyrated between Rs 3,757 and Rs 3,707 before retracing to current level of Rs 3,746 per barrel.

MCX Gold for April settlement last quoted at Rs 16,495 per 10 grams after moving between Rs 16,540 and Rs 16,473 per 10 gram. MCX Silver March settlement contract slipped 0.3% to Rs 26,460 per kg, after having touched a low of Rs 26,330.

Base metal counters too moved in a narrow range. MCX copper for April settlement was last quoting fractionally up at Rs 338.15 per kg, after opening the session at Rs 337.30. MCX zinc March contract lost 0.9% to quote at Rs 105.45 per kg.