European markets are trading on a positive note on expectations that Chinese and European policymakers will boost economic growth by way of new measures and actions.
US stock futures are trading in the red on the back of statement by the Organization for Economic Cooperation and Development (OECD) that the European debt crisis is risking the world economy. This coupled with Japan’s credit ratings cut by Fitch Ratings also came in as a negative factor. Spot gold prices declined by 0.8 percent on account of strength in the US Dollar Index (DX).
The yellow metal touched an intraday low of $ 1573.14/oz and hovered at $ 1577.76/oz today till 4:30pm IST. On the MCX, prices declined around 0.1 percent and were trading at Rs.29,009/10 gms till 4:30pm IST today. Taking cues from fall in gold prices and downside in base metals, Spot silver prices declined more than 1 percent. Additionally, strength in the DX also exerted downside pressure on prices. The white metal touched an intra-day low of $27.97/oz and were trading around $28/oz till 4:30pm IST today.
On the domestic front prices declined around 0.2 percent and hovered at Rs.54,023/kg after touching an intraday low of Rs.53,873/kg today. The base metals pack traded lower today on account of dollar strength and statement by the OECD highlighting global economic concerns. Copper prices declined around 0.4 percent on the LME and hovered at $7726.50/tonne. Although prices on the international bourses declined, the red metal on the MCX gained 0.3 percent on the back of Rupee depreciation.
Nymex crude oil prices declined around 0.5 percent today on the back of expected rise in US crude oil inventories coupled with a stronger DX. Oil prices touched an intraday low of $91.90/bbl and traded around $92.10/bbl till 4:30pm IST today. On the domestic bourses prices gained around 0.4 percent as result of depreciation in Indian Rupee and hovered around Rs.5,146/bbl till 4:30pm IST.
The American Petroleum Institute (API) is scheduled to release its weekly inventories today and US crude oil inventories are expected to increase by 1.5 million barrels for the week ending on 18th May 2012. Gasoline stocks are expected to gain by 500,000 barrels and distillate inventories are expected to remain unchanged for the same week.
Precious metals and base metals are expected to witness downside pressure in today’s trade on the back of a stronger dollar coupled with weak global market sentiments. Although the day opened with upbeat market sentiments in the morning, sentiments have turned mixed after the statement of the OECD highlighting the risks associated with the European crisis on the global economy.
Crude oil prices are expected to fall today as forecast of rise in inventories along with a comfortable supply-side scenario will add to pressure on prices. With Rupee continuing to depreciate, losses on the MCX platform for precious metals, base metals and crude oil will be cushioned.
Courtesy:Angel Commodities
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Nickel trading range for the day is 917.17-955. Market is looking to take support at 929.3, a break below could see a test of 917.1 and resistance is likely to be seen at 948.3, a move above could see prices testing 955.1. In yesterday's trading session Nickel has touched the low of 924 after opening at 924, and finally settled at 941.5.
Nickel was the second best performing commodity yesterday in the base metals group on the back of decline in LME Nickel inventories by 0.1 percent and stood at 106,122 tonnes. Additionally, weakness in dollar index also helped upside in prices of the commodity. LME Nickel prices touched an intraday high of $17,185/tonne and closed at $17,170/tonne in yesterday’s trading session. On the MCX, prices gained by 2.2 percent as depreciation in Indian Rupee further supported the prices and closed at Rs.941.50/kg on Monday.
Aluminium trading range for the day is 109.83-111.93. Market is looking to take support at 110.3, a break below could see a test of 109.8 and resistance is likely to be seen at 111.3, a move above could see prices testing 111.9. Aluminium has touched the low of 110.45 after opening at 111.35, and finally settled at 110.7.
Aluminium yesterday traded with the negative node and settled -0.27% down at 110.7 got resistance technically at 111.00 level.
With inputs from Kedia Commodities and Angel Commodities.
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