NEW YORK (Commodity Online): US stock futures are trading steady ahead of the release of minutes from the latest Federal Reserve’s monetary policy committee meeting. Although equity markets have recovered, concerns still persist and any negative news could trigger downside pressure. This is because, policymakers in the US have failed to reach an agreement on lowering the deficit by $1.2 trillion over the next 10 years, thus leading to spending cuts equal to that amount are slated to take effect automatically in 2013.
Spot Gold prices witnessed gains of around 1 percent today mainly on the back of dollar weakness. The yellow metal touched an intraday high of $1697/oz and was trading at the levels of $1696/oz till 4.45 pm IST. On the MCX, Gold December contract rose 0.9 percent and was hovering around Rs28,690/10 gms till 4.45 pm IST today.
Silver prices also gained around 0.2 percent today taking cues from rise in gold prices coupled with a weaker dollar. Silver being an industrial metal also took cues from upside in base metals too. The white metal touched an intra-day high of $31.82/oz and was trading at $31.71/oz till 4.45 pm IST. MCX Silver surged more than 1.5 percent due to Depreciation in the Indian Rupee and hit a high of Rs55,395/kg till 4.45 pm IST on Tuesday.
Copper, the leader of the base metals pack gained almost 2 percent till 4.45pm IST on account of expectations that decline in prices could Lead to bounce back in demand. With recent data indicating that imports in China jumped last month, prices took some respite from the ongoing selling pressure. Weakness in the US Dollar also added support to prices on the upside.
Nymex Crude Oil increased 1.3 percent today on the back of sanction against Iran which may affect the supplies of the crude oil. Additionally a weaker dollar also acted as a positive factor for the commodity. Oil prices are trading at $98.19/bbl after touching an intra-day high of $98.22/bbl. On the MCX, oil prices gained by 1.9 percent and hovering around Rs.5132/bbl after touching an intraday high of Rs.5138/bbl till 4:45pm today.
The American Petroleum Institute (API) is scheduled to release its weekly inventories tonight and crude oil inventories are expected to fall by 0.5 million barrels for the week ending on 18th November 2011.
