MY: Precious, base metals, crude may trade sideways: Angel
Angel Commodities has come out with its report on international commodities. According to the research firm, precious metals, base metals and crude oil prices are expected to trade sideways on the back of unfavorable economic data from the economy particularly China and Japan.
Angel Commodities has come out with its report on international commodities. According to the research firm, precious metals, base metals and crude oil prices are expected to trade sideways on the back of unfavorable economic data from the economy particularly China and Japan.
German Wholesale Price Index (WPI) increased 0.3% in July.
LME Copper inventories declined by 0.9% in today’s trade.
European markets are trading rangebound while Asian markets swung between gains and losses and closed on a mixed note. US equities are also trading range bound tracking weak economic data from Japan and thereby rising optimism that the global bankers might take monetary easing steps to boost the economies.
German Wholesale Price Index (WPI) increased by 0.3% in July as against a previous decline of 1.1% in June.
Spot gold prices are trading 0.2% higher tracking mixed global market sentiments along with weakness in the US Dollar Index (DX).
Speculation that central bankers of the world might take stimulus measures to boost the economy supported an upside in the prices.
The yellow metal touched an intra-day high of $1625.2/oz and was trading around $1,623.3/oz till 4:30 p.m today. In the domestic markets gold prices increased 0.4% on account of depreciation in the Indian rupee and were trading around Rs.30168/10gm today.
Spot silver prices declined 0.1% tracking bearishness in the base metals pack. However strength in the spot gold prices coupled with weakness in the DX cushioned sharp fall in the prices.
The white metal prices touched an intra-day low of $27.9/oz and were trading around $28.05/oz. In the domestic market prices gained 0.3% due to depreciation in the Indian rupee today.
The base metals pack traded lower today on the back of mixed global market sentiments. However, sharp downside in the prices was cushioned on account of decline in LME inventories along with weakness in the DX.
Copper, the leader of the base metals complex declined around 0.6% taking cues from mixed global market sentiments. However, decline in LME copper inventories by 0.9% which stood at 239,175 tonnes coupled with weakness in the DX restricted sharp fall in prices.
Nymex crude oil prices increased around 0.7% today taking cues from reemergence of tension in the Middle East coupled with weakness in the DX. Additionally, mixed global market sentiments also helped upside in the crude oil prices.
On the domestic bourses, prices gained by 1% on the back of depreciation in the Indian Rupee and hovered around Rs.5,192/bbl today till 4:30pm IST.
Outlook: In today’s session we expect precious metals, base metals and crude oil prices to trade sideways on the back of unfavorable economic data from the economy particularly China and Japan. However, optimism that global central bankers might take monetary easing steps to boost the economic health after observing weak economic data might cushion sharp fall in the prices. Additionally, weakness in the DX might also support an upside in the prices.
