Base Metals Trade Positive On Weak Dollar, Gold, Silver Gains

European equities traded on a mixed note today, ahead of US consumer confidence index. Asian stocks ended on a positive note and expectations of positive consumer confidence data have boosted US stock futures. Spot gold prices gained around 0.1 percent on the back of weakness in the US Dollar Index (DX).

The yellow metal touched an intra-day high of $1578/oz and hovered around $1574/oz till 4:30pm IST today. On the MCX, prices gained by 0.4 percent on account of depreciation in the Indian Rupee and was trading around Rs.29,078/10 gms today.

Spot silver prices declined by 0.6 percent today but weakness in the dollar index cushioned sharp fall in silver prices. The white metal touched an intra-day low of $28.18/oz and was trading around $28.23/oz today.

On the domestic front, prices gained by 0.3 percent on the back of depreciation in the rupee and hovered around Rs.54,530/kg after touching an intra-day high of Rs.54,448/kg till 4:30pm IST today. The base metals complex traded on a positive note today on account of weakness in dollar index. Copper, the leader of the base metals pack gained by 0.3 percent on the LME.

However, rise in LME copper inventories by 1.2 percent capped further gains. Copper prices touched an intra-day high of $7759/tonne and hovered at $7699/tonne till 4:30pm IST today. On the MCX, prices increased by 0.6 percent as depreciation in the Indian rupee further supported the prices and were trading at Rs.428.80/kg today.

Nymex crude oil prices gained by 0.3 percent today on the back of expectations of rise in US consumer confidence index coupled with concerns over Iran’s nuclear program. Additionally, a weaker dollar index also helped upside in prices of the commodity.

Oil prices touched an intra-day high of $91.99/bbl and were trading around $91.13/bbl today. On the domestic bourses, depreciation in Indian rupee helped upside in crude oil prices and hovered around Rs5,102./bbl till 4:30pm IST today.

Expectations of rise in US consumer confidence is expected to boost commodity prices.

The US Dollar Index is expected to weaken on the back of rise in risk appetite and support gains in dollar terms in case of precious metals, base metals and crude oil. Risk to the downside however remains in the form of any negative news or development on the macroeconomic front.