Base Metals Trade Firm, Nymex Crude Rebounds

European Equities are trading on firm note as policy makers eased repayment rules for Spanish banks, relaxed conditions for possible aid to Italy and declared $149 billion for the economic growth of the region. Asian markets ended on firm note while U.S stock futures are trading in the green. Spot gold prices surged around 1.7 percent today on back of upbeat global market sentiments along with weaker dollar index (DX).

The yellow metal touched an intraday high of $1578.70/oz and hovered around $1577.45/oz till 4:30pm IST. On the domestic front, appreciation in the Indian Rupee lead to fall in prices and was trading around Rs.29,509/10 gm till 4:30pm IST. Tracking firmness in precious metals along with the entire base metals pack, spot silver prices also increased by 2.7 percent today. Additionally weakness in the DX also acted as a supporting factor for the upside in the silver prices.

The white metal touched an intra-day high of $27.06/oz and was trading around $27.05/oz today. On the MCX, Silver July contract, surged around 0.4 percent and was trading at Rs.51,947/kg after touching an intra-day high of Rs.52,425/kg till 4:30pm IST today. Base metal prices traded on a firm note on account of decline in the LME inventories coupled with weakness in the DX. Copper, the main metal in the complex surged by 2.5 percent today on account of rise in risk appetite in the global markets coupled with weakness in the DX.

However, further upside in prices was capped on the back of rise in the LME copper inventories by 0.4 percent and stood at 257,150 tonnes. However, in the domestic markets, appreciation in the Indian Rupee capped sharp gains in the copper prices. Nymex crude oil prices gained by more than 3 percent today on the back of supply concerns from Iran as European Union will put embargo on imports of crude oil from 1st July coupled with expectations that European measures will increase demand for the crude oil.

Additionally, a weaker DX also helped upside in the prices. Crude oil prices touched an intra-day high of $80.21/bbl and hovered around $80.16/bbl today till 4:30pm IST. On the domestic bourses, prices increased by more than 1 percent and was hovering around Rs.4,508/bbl after touching an intra-day high of Rs.4,525/bbl today. However, appreciation in the Indian Rupee restricted further gains in crude oil prices on the MCX.

In the evening session, we expect precious metals, base metals and crude oil prices to trade with bullish sentiments on account of upbeat global market sentiments coupled with weakness in the DX. Additionally, US consumer sentiments are expected to come on a positive note which will also support upside in prices.