Nymex Crude Oil Gains 1.5%, Base Metals Trade Positive

European equities are trading on a mixed note on the back of expectations of slow economic growth. Asian markets ended on a mixed note and US stock futures are trading in the green. Spot gold prices gained around 0.8 percent on the back of weakness in the US Dollar Index (DX). 

The yellow metal touched an intra-day high of $1582.80/oz and hovered around $1577.39/oz today till 4:30pm IST. On the MCX, Gold August contract declined around 0.5 percent on account of appreciation in the Indian Rupee and was trading around Rs.29,284/10 gms after touching an intra-day low of Rs.29,234/10 gms today.

Taking cues from rise in gold prices coupled with upside in base metals, Spot silver prices increased by 1.3 percent today. Additionally, weakness in the DX also helped upside in silver prices. The white metal touched an intra-day high of $27.18/oz and was trading around $27.12/oz today. On the domestic front, prices traded on a flat note and hovered around Rs.52,668/kg till 4:30pm IST today. However, appreciation in the Indian rupee capped further gains in prices.

The base metals complex traded on a positive on the back of weakness in the DX along with decline in LME inventories. Copper,  the leader of the base metals group gained around 0.4 percent on  account of decline in LME copper inventories by 0.4 percent which stood at 252,350 tonnes. The red metal touched an intra-day high of $7,538.25/tonne and hovered around $7,530/tonne. 

In the Indian markets prices declined around 0.1 percent on account of appreciation in the Indian rupee. Nymex crude oil prices gained around 1.5 percent today on account of expectations of decline in US crude oil inventories coupled with weakness in the DX. Crude oil prices touched an intra-day high of $85.22/bbl and hovered around $85.20/bbl today till 4:30pm IST. On the domestic bourses, prices declined by 0.6 percent on the back of appreciation in the Indian rupee and was trading around Rs.4,722/bbl today.

The US Energy Department (EIA) is scheduled to release its weekly inventories report today at 8:00pm IST and US crude oil inventories is expected to decline by 1.2 million barrels for the week ending on 6th July 2012. Gasoline stocks are expected to rise by 0.3 million barrels whereas distillate inventories are also expected to gain by 0.4 million barrels for the same period.

In the evening session, we expect precious metals, base metals and crude oil prices to trade with a positive bias on the back of expectations of measures by the US Federal Reserve, upbeat global market sentiments along with weakness in the DX. In case of crude oil, prices will get support from expectations of decline in US crude oil inventories.