Metals, Energy Trade Positive On Rise In Risk Appetite

European markets were trading on a firm note due to upbeat global market sentiments ahead of U.S. unemployment and nonfarm payrolls data, the later of which (nonfarm jobs) handily beat expectations. Asian markets closed on a negative note while U.S. stock futures were trading on a positive note.

Spanish Services Purchasing Managers' Index (PMI) increased by 0.3 points to 43.7-level in July as against a rise of 43.4-mark in June. Italian Services PMI declined marginally to 43-mark in last month as compared to increase of 43.1 in June. European Final Services PMI gained by 0.2 points to 47.9-level in last month from rise of 47.6-mark a month ago. European Retail Sales grew at slow pace of 0.1% in June with respect to rise of 0.6% a month earlier.

U.K.'s Services Purchasing Managers' Index (PMI) declined by 0.3 points to 51-mark in July from previous rise of 51.3-level in June. Spot gold prices increased 0.4% tracking positive global market sentiments ahead of unemployment and nonfarm payroll data from U.S.. Additionally, weakness in the U.S. Dollar Index (DX) also acted as a supportive factor for the rise in the gold prices. The yellow metal is trading around $1596.7/oz after touching a high of $1596.8/oz till 4:30 p.m. In the domestic markets on MCX gold prices however declined 0.12%. However, depreciation in the Indian rupee cushioned sharp fall in the prices.

Metals
Tracking firmness in gold and base metals prices, Silver prices increased 0.7% coupled with weakness in the DX. The white metal touched a high of $27.3/oz and was hovering around $27.29/oz till 4:30p.m. On MCX silver prices gained 0.04% and were hovering around Rs. 52,925/kg tracking spot prices. The base metals pack traded on a positive note on the back of positive global market sentiments along with weakness in the DX.

Additionally, decline in LME inventories also helped upside in the prices. Copper, the leader of the base metals complex increased by 0.6% today on account of decline in LME copper inventories by 0.8% and stood at 244,725 tonnes. Additionally, a weaker DX coupled with upbeat global market sentiments also acted as a positive factor for the prices.

Nymex crude oil prices gain by 1.3% today on the back of expectations of positive economic data from U.S. along with weakness in the DX. Additionally, expectations of the tropical storm in the Gulf of Mexico also supported upside in the prices.

U.S. Markets
In the evening session, we expected and saw precious metals, base metals and crude oil prices trading on a positive note on the back of a rise in risk appetite in the global markets coupled with weakness in the DX. Additionally, better-than-expected employment data from the U.S. bolstered support for most commodities to the upside, notwithstanding a slight uptick in the rate of unemployed from 8.2% to 8.3%.