FRX: Gold Gains, Base Metals, Crude Oil Trade Positive
European equities are trading on a negative note today on the back of Spain and Cyprus being downgraded by Moody’s Investors. Asian markets also ended lower and U.S. stock futures are trading in the green.
Gold
India’s WPI inflation increased by 7.55% in May from 7.23% in April. Food inflation was at 10.74% in last month compared to 10.5% in April. Spot-gold prices gained around 0.1% in today’s trading session. However, strength in the U.S. Dollar Index (DX) capped further gains in gold prices.
The yellow metal touched an intraday high of $1623/oz and hovered around $1619/oz till 4:30pm IST today. On the MCX, Gold August contract increased by 0.3% on account of depreciation in the Indian Rupee and was trading around Rs.30,133/10 gm today.
Silver
Taking cues from the rise in gold prices, coupled with upside in the base-metals pack, Spot silver increased around 0.3% today. However, a stronger DX restricted further upside in the silver prices. The white metal touched an intra-day high of $29.10/oz and was trading around $28.89/oz today. On the domestic front, prices gained around 0.3% and hovered around Rs.55,157/kg after touching an intra-day high of Rs.55,361/kg till 4:30pm IST today. However, depreciation in the Indian Rupee also acted as a positive factor for the commodity.
Copper
The base metals complex traded on a positive today on the back of decline in LME inventories. Copper, the leader of the base metals increased around 0.3% in today’s trading session. However, further upside in the prices was capped on the back of rise in LME copper inventories around 0.7% which stood at 245,075 tonnes.
The red metal touched an intra-day high of $7,443/tonne and hovered around $7,395/oz till 4:30pm IST. On the domestic front, gained by 0.5% on the back of depreciation in the Indian Rupee and was trading around Rs.412/kg today. Nymex crude oil prices gained by 0.2% today on expectations of mixed economic data from the U.S. Crude-oil prices touched an intra-day high of $83.08/bbl and hovered around $82.78/bbl today. On the domestic bourses, prices traded on a flat note and was trading around Rs.4,626/bbl till 4:30pm IST today.
In the evening session, we expect precious metals, base metals and crude-oil prices to trade with a negative bias on account of rise in risk aversion in the global markets coupled with strength in the DX. U.S. Core CPI and unemployment claims are expected to come on mixed note and if it comes more than forecasted, it may exert downside pressure on the commodities.
