COM: Gold dips slightly from record high, Oil in red
Spot Gold prices declined today, albeit marginally after touching a record high of $1248/oz yesterday on the Comex division of the New York Mercantile exchange. Profit booking at the higher levels led the yellow metal prices to trade in the negative territory.
Gold prices are on a continuous gain since the last two weeks as the Eurozone crisis is making investors flock towards safer investments like gold. Investors feel that despite the financial assistance, the ailing economies would find it difficult to overcome their ongoing economic issues and curtail their huge fiscal deficits.
Copper prices were trading in the green on the LME till 3.45 pm IST today despite the strength in the dollar in the afternoon trade. The dollar rebounded back and breached above 85 after touching an intra-day low of 84.55. Mixed sentiments in the financial markets led the dollar to strengthen.
However, copper inventories declined at the LME warehouse by 1225 tonnes, whereas cancelled warrants- the metal booked for removal from the LME warehouse increased by 2,525 tonnes, reflecting improved demand. These factors underpinned the prices.
Crude oil prices were trading in the red on the Nymex till 3.45 pm IST today as the stronger dollar made the commodity prices less attractive for holders of other currencies. Moreover, the US energy department reported yesterday that crude inventories rose by 1.95 million barrels last week to 362.5 million, the highest in almost a year. Constant increase in crude oil inventories in the US is denting the short term outlook.
Outlook
On the macroeconomic front, the US authorities are expected to announce economic data on unemployment claims and import prices. Positive data may help in reviving investor sentiments. Copper prices will mainly take cues from the movement in the dollar today.
Gold prices are expected to trade with a positive bias as the yellow metal is attracting demand in terms of a safe-haven asset. Crude oil prices will trade with a negative bias on concern of rising inventories in the US.
