Precious Metals To Edge Higher On US Economic Data: April 18, 2012

Spot gold prices erased most of its earlier losses and ended slightly lower on Tuesday. Revival in the global markets due to favorable economic data from the eurozone and weakness in the US Dollar Index supported upside in the yellow metal prices.

Additionally, positive forecast for global economic growth from the IMF also helped gold to trim most of its losses in the evening session. The yellow metal touched an intra-day low of $1634.44/oz and closed at $1649.29/oz yesterday.

On the MCX, Gold June contract dropped around 0.3 percent due to appreciation in Rupee on Tuesday, touching an intra-day low of Rs.28,351/10 gms and closed its trading session at Rs. 28,482/10 gms yesterday.

Silver

Silver traded higher by 0.7 percent on the international markets on Tuesday, on the back of weakness in the US Dollar Index coupled with upbeat sentiments in the markets.

The white metal touched an intra-day high of $ 31.88/oz and closed at $31.68/oz yesterday. On the MCX, Silver May contract gained around 0.2 percent and touched an intra-day high of Rs56,291/kg

Gold, Crude Oil To Edge Higher, MCX Copper Trade At Rs.413-417

Gold futures along with silver can open in positive territory tracking firm opening in international markets. Gold can trade in range of 28350-28600 and silver can also trade in range of 55500-56500 in near term.

The risk appetite in the market place improved Tuesday. There was a successful Spanish bond auction overnight and some stronger economic data coming out of Germany.

That boosted the European stock markets, and in turn supported the U.S. stock indexes and commodity markets.

Base Metals

Base metals counter can trade sideways with positive bias with some short covering seen at current levels.

Copper may trade in range of 413-417 while Lead may trade in range of 106-108 and zinc in range of 102-104.40 in near term. Copper futures rose for the second straight day as signs of progress on Europe’s debt crisis, while an International Monetary Fund projection for faster global economic growth buoyed the outlook for metal demand.

Spain sold more debt than planned, while German investor confidence unexpectedly rose to a two-year high.

Energy

Crude oil can also trade on firm path continuing yesterday gains and can test 5400 in MCX. U.S. crude futures settled up 1.2% Tuesday as investors looked to a coming pipeline reversal that is expected to bring U.S. oil in line with global prices.

The Seaway pipeline reversal, designed to help ease a supply glut in Cushing, Okla., that has been depressing U.S. prices, will begin delivering crude to the Gulf Coast refinery belt in a month, or two weeks earlier than expected.