MUMBAI (Commodity Online): Precious, base metals and crude oil prices in the evening session are expected to trade on a positive note taking cues from upbeat global market sentiments causing rise in the risk appetite and thereby decline in demand for the DX.
Positive economic data from the US, China and Europe is creating optimism that the economies are on the path of recovery. Thus providing support to an upside in the commodities.
Spot gold prices are trading on a positive note due to rise in the risk appetite in the global markets resulting from positive data from the Euro causing weakness in the DX. The yellow metal is trading 0.3% higher today after touching a high of $1,734.30 per ounce till 4:30 p.m.
In the domestic markets MCX Gold prices are trading 0.6% higher owing to depreciation in the Indian rupee and traced spot gold prices.
Tracking firmness in the gold prices along with weakness in the DX spot silver prices also strengthened 0.5% and is trading around Rs.32,024 per 10 gms. Further, firmness in the base metals pack except copper also added to the gains in the silver prices.
In the domestic markets MCX silver prices are trading higher 0.6% due to depreciation in the rupee.
Base metal prices continued to extend earlier gains of the previous day taking cues frm positive data from the US and Chinese economy along with unexpected rise in the business confidence in Germany. Additionally, decline in the LME inventories also added to the gains in the base metals prices.
Copper prices however, witnessed a downside pressure on account of profit booking. However, sharp downside in the prices were cushioned on account of weakness in the DX and decline in the LME inventories.
NYMEX crude oil prices are trading 0.4% higher due to positive data from the US and Chinese economy along with weakness in the DX. However, sharp upside in the prices were capped on account of cease fire called by Israel and Hamas easing concerns of supply disruptions.
In the domestic markets depreciation in the Indian rupee is acting as a supportive factor for MCX crude oil prices.