Gold, Silver, Copper, Crude Oil to trade sideways

European equities are trading higher today on the back of expectations that Greece creditors will agree to strengthen the growth. However, sharp upside was capped on account of unfavorable economic data from the region. Asian markets ended on a positive note and US stock futures are trading on a flat note.

UK’s Halifax House Price Index (HPI) declined by 0.6 percent in July as compared to rise of 0.8 percent in June. European Sentix Investor Confidence declined further to 30.3-mark in August with respect to previous decline of 29.6-level in July. Gold prices are trading on a flat note 0.25 marginally up and are trading around $1607/oz.

However, reports of disagreement over European Central bank aid to Spain are creating bearish market sentiments along with strength in the US Dollar Index (DX) capped sharp gains in the prices. Prices touched a high of $1610.30/oz in the intraday. In the domestic prices gold prices traced the spot prices and increased 0.20 percent till 4:30 p.m. Appreciation in the Indian rupee however capped sharp gains in the prices on MCX.

Silver prices are trading on a negative note tracking bearishness in the base metals pack coupled with strength in the DX. Silver prices touched an intra-day low of $27.60/oz and were hovering around $27.71/oz till 4:30 p.m. In the domestic markets, silver prices declined marginally due to appreciation in the Indian rupee and were hovering around Rs.53287/kg till 4:30 p.m.

The base metals pack traded lower on the back of strength in the DX. Additionally, rise in LME inventories also added downside pressure on the prices. Copper, the leader of the base metals complex declined by 0.16 percent today on account of rise in LME copper inventories by 0.5 percent which stood at 245,950 tonnes coupled with strength in the DX. On the MCX, Copper August contract declined by 0.12 percent today on the back of appreciation in the Indian Rupee and hovered around Rs.413/kg today till 4:30pm IST.

Nymex crude oil prices declined around 0.4 percent today taking cues from Tropical Storm Ernesto slowing and it has moved towards the Caribbean islands. Additionally, a stronger DX also acted as a negative factor for the crude oil prices. In the Indian markets, prices declined as a result of appreciation in the Indian Rupee and hovered around Rs.5094/bbl after touching an intra-day low of Rs.5085/bbl today till 4:30pm IST.

In today session we expect precious metals, base metals and crude oil prices to trade sideways with downward bias due to positive global market sentiments. However, negative economic data from the Euro zone along with strength in the DX might cap sharp gains.