Spot Gold prices were trading in the green around $1210/oz levels till 3.45 pm IST today. Asian financial markets continued to trade with a positive bias today with major indices trading in the green.
The sharp rally in gold prices this week has come to a standstill on improved market sentiments. However, prices are supported on the downside as markets still remain choppy and any negative news from the Eurozone during the weekend can lead to renewed concern over the crisis.
Copper prices gained today and were trading above $7000/tonne on the LME taking cues from the movement in the dollar. The dollar index which measures its performance against a basket of currencies continued to weaken today helping the dollar-denominated commodities to gain. The European markets were trading in the green till 3.45 pm IST, reflecting improved sentiments. Copper inventories continued to decline at the LME warehouse, supporting the red metal prices to march northwards.
Crude oil prices continued to gain and were trading at $75.35/bbl till 3.45 pm IST today. Crude oil prices had rallied in yesterday’s session gaining more than 5% on the Nymex.
The weaker dollar is making the commodity prices look attractive for holders of other currencies. The US Energy Department reported on Wednesday that crude oil inventories increased by 1.9 million barrels in the last week. However, this increase was less than the earlier increase of 2.8 million barrels.
Outlook
On the macroeconomic front, the US is expected to announce economic data on personal spending, consumer sentiment and Chicago PMI today. However, markets still remain susceptible over the ongoing economic issues in the Eurozone. The US and the UK markets will remain closed on Monday. Hence, investors may avoid taking fresh positions ahead of the long weekend.
Gold prices will continue to remain strong on the back of ongoing issue in the Euro Zone and dollar weakness will also provide support. Copper and crude oil prices will take support from a weaker dollar but sharp gains will be capped as long-term impact of the Euro Zone debt issue continues to haunt financial market sentiments.
