COM: Gold continues decline, Oil at $73, copper falls
Spot Gold prices continued to decline for a second consecutive day and were trading around $1216/oz till 3.40 pm IST today. The Asian as well as the European markets gained today as positive economic data releases from the US yesterday have increased appetite amongst the investors. Improved market sentiments are leading to reduced demand for safer investments like gold and the dollar. However, gold prices could gain back in the medium term as the worries over the sovereign debt crisis in the Eurozone continue to prevail.
Copper prices were trading in the red till 3.45 pm IST today, but were little unchanged to its previous close as the weakness in the US dollar index (DX) cushioned the prices. However, the red metal prices are lacking trigger on the back of poor manufacturing data from China this week. Manufacturing in the country expanded at much slower pace in May. The slower growth may reduce demand for metals, which can hurt the prices.
Crude oil prices were trading around $73/bbl on the Nymex till 3.50 pm IST today ahead of the inventory data to be released by the US energy department. The API reported yesterday that crude oil supplies in the US fell 1.42 million barrels in the last week. Gasoline inventories declined 962,000 barrels as demand surged 3.7% in the last week, the highest level since August 2007.
Outlook
On the macro-economic front, a host of economic data comprising of unemployment claims, ADP non farm employment change and ISM non manufacturing PMI is scheduled to be released by the US authorities today. Data is expected to come on the positive side and this may help in further reviving the market sentiments.
The DX is expected to remain weak which will help the commodity prices to erase major losses of this week. However, concerns of poor demand from China will cap major gains in the copper prices. Crude oil prices will take cues from the inventory data to be released later in the evening today. Gold prices would trade with a negative bias today as improved market sentiments will lead to lower demand for the yellow metal.
