Spot Gold prices were trading in the green till 4.00 pm IST today. The yellow metal prices had gained yesterday as the weakness in the US dollar index (DX) made the yellow metal prices look attractive for holders of other currencies The European as well as the Asian markets continued to gain today and were trading in the green in the afternoon trade. However, the DX gained marginally today after falling in the previous two sessions.
Copper prices gained on the LME till 4.00 pm IST today. The red metal prices took cues from the positive sentiments in the financial markets. However, a sharp trigger in copper prices was capped by the stronger DX. However, we expect the DX to weaken in the evening trade which will help the copper prices to move further upwards. The trend of declining inventories of copper continued at the LME warehouse today.
Crude oil prices remained little unchanged to its previous close till 4.00 pm IST on the Nymex today. The commodity prices had gained more than 2% yesterday. Today, the US Energy department is expected to release data on crude oil inventories later in the evening. Markets are expecting that the inventories would decline by 1.5 million barrels in the week ending 11th June. The energy department had reported last week that crude oil inventories declined by 1.8 million barrels.
Outlook
On the macroeconomic front, the US authorities are expected to announce economic data on building permits, industrial production, and producer prices today. The data is expected to come on the positive side which can further improve the market sentiments. We expect the DX to remain weak and this factor will help the dollar-denominated commodities to gain.
Crude oil prices will take cues from the inventory data to be released by the US energy department today. Moreover, the weaker DX will support the prices. Copper prices will take cues from the movement in the DX. Gold prices would be capped as risk appetite in the markets would decrease demand for the yellow metal as a safe-haven.
