Base Metals Positive, MCX Gold In Mixed Trend

European markets are trading on a mixed note owing to positive statement by the European Central Bank President Mario Draghi that it is preparing to buy Spanish and Italian bonds while on the other hand Spanish unemployment rate increased which is indicating worries still persist.

Asian markets closed on a positive note. US stock Futures traded on positive note. Spanish Unemployment Rate rose by 0.2 percent to 24.6 percent in Q2 of 2012 from previous rise of 24.4 percent in Q1 of 2012. Spot gold prices increased 0.8 percent on account of upbeat global market sentiments along with weakness in the DX. The yellow metal touched an intra-day high of $1627.70/oz and hovered at the same levels till 4:30pm IST today.

On the MCX, Gold August contract traded on mixed note and are marginally up by 0.04%. Gold prices were trading around Rs.29,781/10 gms till 4:30 p.m. after touching a low of Rs.29,750/10gms in today’s session. Appreciation in the Indian Rupee capped sharp gains on MCX. Taking cues from strength in the gold prices and base metals prices, spot prices of Silver gained by 0.87 percent. Weakness in the DX also supported an upside in the silver prices.

The white metal touched an intra-day high of $27.76/oz and was hovering around $27.74/oz till 4:30 p.m today. In the domestic markets Silver prices gained by 0.22 percent tracking Spot prices and was trading around Rs.53,335/kg till 4:30 p.m today. However, sharp rise in the prices were capped due to appreciation in the Indian rupee. The base metals pack traded on a positive note on the back of upbeat global market sentiments along with mixed situation of LME inventories. Weakness in the DX also supported the prices on the upside.

Copper, the leader of the base metals gained by 1.49 percent on the LME and hovered around $7,580/tonne till 4:30pm IST today. But,sharp upside in the prices was restricted taking cues from rise in LME copper inventories by 0.2 percent which stood at 250,300 tonnes. On the domestic front, prices increased around 0.3 percent and were trading around Rs.419.95/kg today.

Nymex crude oil prices gained around 0.30 percent on account of positive global market sentiments along with weakness in the DX. Additionally, speculation that European Central Bank (ECB) might take steps to curtail the Eurozone debt which is causing slow down of the entire global economy also supported the prices.

In the evening session we expect precious metals, base metals and crude oil prices to trade with sideways with upward bias on account of upbeat global market sentiments along with weakness in the DX. However, expectation that US GDP for the second quarter to come lower than the previous quarter may cap sharp gains or even reverse earlier gains.