Precious Metals To Edge Higher On US Economic Data: April 19, 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

Base Metals Recover On Weak US Dollar Index

A successful Spanish bond sale, favorable economic data from Eurozone front, improved market sentiments and a weaker Dollar Index helped base metals to recover most of their earlier losses. In addition to this, positive forecasts for global economic growth from the IMF also supported metal prices. However, fall in housing starts and factory production in the US capped further gains in metal prices on the LME.

Copper

Copper rose around 0.4 percent on the LME and touched an intraday high of $8078.50/tonne on Tuesday.

The red metal prices gained on account of a successful Spanish bond sale and improved investor confidence in Germany eased worries over Eurozone debt tensions. Additionally, positive forecast from IMF and a weaker Dollar Index also helped further upside in copper prices.

Zinc

Zinc prices decline around 0.7 percent on the LME and by 0.8 percent on the MCX on Tuesday. LME inventories of zinc rose 1.1 percent to 912,150 tonnes yesterday and this acted as a negative factor for this metal.

On the MCX, zinc April contract touched an intra-day low of Rs. 102.70/kg and closed its trading session at Rs. 102.95/kg yesterday.