Gold, Silver Gain On Weak Dollar, Oil Rises On Easing Eurozone Worry

Major European and US markets are closed on account of holiday today. European equities traded on a positive note after Greece’s opinion polls eased the concern of the country’s exit from the eurozone.

Spot gold prices gained around 0.4 percent today on the back of weakness in the US Dollar Index (DX). The yellow metal touched an intra-day high of around $1584/oz and hovered around $1579/oz till 4:30pm IST today. On the MCX, prices increased around 0.3 percent and were trading around Rs.28,980/10 gms today but further upside was capped on account of appreciation in the Indian rupee.

Taking cues from rise in gold prices and upside in base metals, spot silver prices gained around 0.4 percent today. Additionally, weakness in the Dollar Index also helped upside in prices of the commodity. The white metal touched an intra-day high of $28.77/oz and was trading around $28.60/oz today. 

On the MCX, prices increased around 0.4 percent and hovered around Rs.54,630/kg after touching an intra-day high of Rs.54,867/kg till 4:30pm IST today. However, further upside in prices was capped on the back of appreciation in the Indian rupee. The base metals pack traded with a positive bias today on account of easing concerns over Greece. This coupled with decline in LME inventories also supported prices. Additionally, weakness in the DX also supported base metal prices. 

Copper, the leader of the base metals complex increased by 1.4 percent today on the LME. Prices touched an intra-day high of $7755/tonne on the LME and hovered around $7730/tonne today. On the domestic front, prices gained by 0.8 percent and were trading around Rs.427/kg till 4:30pm IST today. Nymex crude oil prices gained around 1 percent today on the back of ease worries over Greece as voters sign austerity measures to back the European Union bailout. 

Additionally, the United Nations indicated that Iran boosted its output of enriched uranium and will face an oil embargo starting from July. This also helped upside in prices. Crude oil prices touched an intraday high of $91.97/bbl and were trading around $91.72/bbl till 4:30pm IST today. On the domestic bourses, prices increased by 0.7 percent and hovered around Rs.5,090/bbl today.

Easing worries over Greece will help support upside in precious metals and base metals in today’s trade. The DX is expected to weaken today and this factor will also support upside in dollar terms. Crude oil prices could witness upside support, taking cues from stable market sentiments along with news of an oil embargo as Iran increased its uranium output.