MUMBAI (Commodity Online): Gold and base metals prices in the evening session are expected to trade on a firm note due to optimism that the US President might be able to solve the fiscal cliff issue. Investors are also awaiting decision from the European leaders meeting today to decide on the bailout for Greece.

Rise in the risk appetite might be witnessed if any positive decision is arrived at in the Euro group meeting. However, risk aversion might be witnessed if data from the US housing sector is unfavourable.

Crude oil prices are expected to remain volatile as on going tensions in the Middle East might support an upside while expectation of rise in the US crude oil inventories might restrict sharp gains. Weakness in the DX is expected to cushion sharp fall in the crude prices.

Precious Metals

Spot gold prices are trading on positive note on optimism that US President Barack Obama might be able to solve the fiscal cliff issue. Additionally weakness in the DX also supported an upside in the gold prices.

The yellow metal gained 0.1% today after touching a high of $1,734.9 per ounce and is currently trading around $1,733.36 per oz till 4:30 p.m.

In the domestic markets MCX Gold prices are trading higher tracking spot gold prices. Depreciation in the Indian rupee also acted as a supportive factor for the MCX gold prices.

Spot silver prices rose 0.18% taking cues from strength in the spot gold prices along with weakness in the DX. However sharp rise in the prices were capped due to weakness in the base metals pack. In the domestic markets MCX silver prices are trading higher tracing spot silver prices along with depreciation in the rupee.

Base Metals

Base metal prices declined owing to mixed global market sentiments along with weakness in the DX. Worries over the Euro debt concerns after Moody’s downgrade France is also creating bearish market sentiments.

Copper prices declined 0.2% owing to worries that the Euro zone debt concerns are deepening there by reducing the demand for the copper prices. In the domestic markets prices gained on account of depreciation in the Indian rupee.

Energy

NYMEX crude oil prices declined 0.2% on the back of expectation that the crude inventories might increase in the US over shadowing ongoing tensions in the Middle East. Weakness in the DX however, cushioned sharp fall in the prices in the crude oil.

In the domestic markets depreciation in the Indian rupee cushioned sharp gains in the MCX crude oil prices.

Courtesy: Angel Commodities