COM: Gold, Crude oil marginally up, copper falls into red
Spot Gold prices gained marginally till 4.00 pm IST today on the back of weakness in the dollar. The dollar index retreated after touching a high of 81.70 in the morning. Risk appetite in the financial markets led the greenback to weaken today.
But economic worries in other countries in the Eurozone comprising of Spain, Portugal and Italy is keeping the dollar well above the crucial 80-mark as a safe-haven investment. Hence, gold prices are lacking trigger as the yellow metal prices usually trade inversely to the greenback.
Copper prices were trading in the red till 4.00 pm IST today after rallying in the earlier sessions of this week. However, the red metal prices wiped out major intra-day losses as the dollar weakened in the later part of the trade. Moreover, the trend of declining inventories on the LME also provided crucial support to the prices. Copper inventories declined today for consecutive 21st session by 575 tonnes to reach 514,325 tonnes on the LME.
Crude oil prices gained marginally on the Nymex till 4.00 pm IST today mainly on the back of weakness in the dollar in the later part of the trade. Crude oil prices gained yesterday on the back of positive updates from the US, indicating that the demand may increase.
The API data released yesterday reported that despite the increase in crude oil inventories, gasoline stockpiles declined indicating that the demand is increasing. The US Energy department which is scheduled to report inventory data may also show that gasoline stockpiles decreased in the world’s largest consumer.
Outlook
On the macroeconomic front, the US is expected to announce a host of economic data on ADP Non-Farm Employment change, Chicago PMI, Factory Orders and Crude oil inventories. Positive updates from the world’s largest economy would boost investor sentiments. Crude oil prices would take cues from the inventory data to be released later in the evening.
The dollar could strengthen as markets still remain susceptible over economic concerns in the Eurozone. The Greece issue is still not over as other countries like Spain, Portugal and Ireland too have debt woes. Strength in the dollar could re-emerge on the back of these concerns and lead to downside in gold. But copper prices could rise as fund buying coupled with falling inventories will support an upside.
