The uprisings in North African and West Asia could likely have an indirect impact on inflation in emerging economies, including in India. They are expected to reflect in the rise in non-food prices in the months to come, which would push up industrial raw material costs.
"Crude oil, bullion (gold & silver) and base metal have witnessed a significant rise in prices in the last six months," Naveen Mathur, associate director (commodities and currencies) of Angel Broking.
The prices of base metals, which include copper, aluminium, nickel, lead, zinc and tin, have risen by 15-49 per cent globally over the last six months, owing to growing demand in the wake of the developed economies returning to the growth path. Expected supply deficit in 2011 is keeping copper prices strong.
Auto majors are already feeling the pinch with steel prices firming up.
GLOBAL COMMODITY PRICES SURGE
Crude oil prices jumped to a two-and-a-half-year peak on Monday as worries about supply disruption increased due to widening clashes in Libya, while world stocks fell on concerns that sustained high oil prices could hurt growth.
Unrest in the oil-rich West Asia stoked demand for precious metals with gold - often sought in times of geopolitical tensions - rising close to a lifetime high of $1,443.30 an ounce, while silver surged to a 31-year peak.
In Asia silver gained 2.1 per cent to trade at $36.3675 an ounce, the metal's fresh high since 1980.
On Monday the price of silver rose by Rs 1,250 to Rs 54,450 per kg in India, while gold traded at Rs 21,420, up Rs 200 in India.
The euro briefly reversed gains against the dollar and peripheral euro zone debt prices fell after Moody's cut its rating for Greece by three notches to B1 and kept it on review for further downgrades, although core German debt was little changed.
US crude oil futures jumped 1.6 per cent, topping $106, to its highest price in 30 months as a counter-offensive by Libya's Muammar Gaddafi against rebels deepened fears that the African nation is headed for a civil war.