Spot Gold Prices Gain, Nymex Crude Oil Declines

European equities are trading on a positive note on affirmative statement by the ECB President that they would do all necessary steps to save the euro. Asian markets ended on a positive note.

GfK German Consumer Climate gained by 0.1 point to 5.9-mark in July as against a rise of 5.8-level in June. German Import Prices declined by 1.5 percent in June from previous decline of 0.7 percent a month ago. European M3 Money Supply rose slightly by 3.2 percent in last month as compared to 3.1 percent in May. Italian Retail Sales declined by 0.2 percent in May with respect to decline of 1.7 percent a month ago.

Private Loans declined by 0.2 percent in June when compared to decline of 0.1 percent a month ago. Spot Gold prices increased 0.6 percent on account of positive global market sentiments coupled with weakness in the US Dollar Index (DX). The yellow metal touched an intraday high of $1614.40/oz and hovered $1613.38/oz till 4:30pm IST today.

On the MCX, Gold August contract traded on mixed note and are mildly up 0.01 percent tracking firmness in the spot prices. However, appreciation in the Indian rupee capped sharp gains in the MCX Gold prices. Gold prices were trading around Rs.29,837/10 gms till 4:30 p.m. after touching a high of Rs.29,844/10gms in today’s session.

Taking cues from rise in gold prices coupled with weakness in the DX, Spot silver prices gained around 1 percent today. The white metal touched an intraday high of $27.58/oz and was trading around $27.55/oz till 4:30 p.m. On the domestic front, prices declined by 0.08 and hovered around Rs.53,409/kg today till 4:30pm IST after touching a low of Rs.53,150/kg in today’s session.

The base metals pack traded on a positive note today on the back of upbeat global market sentiments coupled with weakness in the DX. Additionally, decline in LME inventories also supported an upside in prices. Copper, the leader of the base metals gained by percent today taking cues from decline in LME Copper inventories by 0.6 percent and stood at 249,900 tonnes.

Nymex crude oil prices declined around 0.21 percent today due to rise in the crude oil inventories in yesterday’s session and was trading around $88.78/bbl till 4:30 p.m today. However, weakness in the DX cushioned sharp fall in the prices. In the MCX, crude oil prices settled 0.76 percent higher and hovered around Rs.5,024/bbl till 4:30 p.m.

In Friday’s session we expect precious metals, base metals and crude oil prices to trade on a positive note due optimistic statement by the ECB President Mario Draghi coupled with weakness in the DX. Additionally, expectation of favourable economic data from the US economy will support upside in the prices.