Precious, Base Metals And Crude Oil To Trade Sideways

European markets are trading on a firm note due to expectation that now European Central Bank President would be able to chalk out plans to ease the Euro zone debt crisis. Asian markets closed on a positive note. US stock Futures are trading on mixed note.

Spanish Flash GDP further declined to -0.4 percent in Q2 of 2012 from previous decline of 0.3 percent in Q1 of 2012. European Retail Raw Materials Price Index (RMPI) declined by 1.9 points to 46.4-mark in July as against a previous rise of 48.3-level in last month. UK’s Net Lending to Individuals increased at slow pace of 0.3 billion Pounds in June as against a previous rise of 1.1 billion Pounds a month ago.

M4 Money Supply further declined by 1.6 percent in last month from previous decline of 0.1 percent in May. Mortgage Approvals declined by 7,000 the lowest in 18 months to 44,000 in June as compared to rise of 51,000 in May. Confederation of British Industry (CBI) Realized Sales declined by 31 points to 11-level in current month with respect to previous rise of 42-mark in last month.

Spot gold prices declined 0.2 percent on account of strength in the DX. The yellow metal touched an intraday low of $1616.39/oz and hovered at the $1619.25 till 4:30pm IST today. On the MCX, Gold August contract traded on mixed note and are marginally down by 0.02%. Gold prices were trading around Rs.29,791/10 gms till 4:30 p.m. after touching a low of Rs.29,766/10gms in today’s session.

Depreciation in the Indian Rupee however cushioned sharp fall. Taking cues from fall in the gold prices along with bearishness in the base metals, silver prices declined 0.2 percent and were hovering around $27.64/oz till 4:30 p.m. Strength in the DX also pressurized the white metals prices. On MCX Silver prices were marginally up due to
depreciation in the Indian rupee and were hovering around Rs.53,308/kg till 4:30 p.m.

The base metals pack traded lower today on account of strength in the DX. However, sharp downside in prices was cushioned on back of decline in LME inventories. Copper, the leader of the base metals complex declined by 0.2 percent today on the LME and hovered around $7,553/tonne today till 4:30 pm IST. But decline in LME copper inventories around 0.5 percent which stood at 249,075 tonnes.

Nymex Crude oil prices gained by 0.2 percent today taking cues from expectations that US and European policymakers will take stimulus measures to boost economic growth coupled with tensions in Middle East. However, sharp upside in prices was capped on the back of strength in the DX.

In today’s session we expect precious metals, base metals and crude oil prices to trade sideways with upward bias owing to mixed global market sentiments. Expectations of stimulus measures by the policymakers from eurozone and US in the week are likely to support upside in the prices. However, strength in the DX will cap sharp gains in today’s session.