European markets are trading on a firm note taking cues from favorable US earning results. While, on the other hand German Industrial production witnessed a rise supporting an upside in the stocks. Asian markets ended on a negative note and US index futures are trading on a mixed note.
Spot gold prices gained 0.3 on expectation of rise in the demand from China, one of the major consumers of the yellow metal. Apart from expectation of rise in demand from the Japanese pension funds are also supporting an upside in the gold prices. However, strength in the DX restricted sharp gains in the gold prices. MCX Gold prices fell 0.2 percent due to appreciation in the rupee.
Tracing strength in the spot gold prices and firmness in the base metals pack led international silver prices also to gain. Prices are trading 0.2 percent higher till 4:30p.m today. Strength in the DX acted as a bearish factor for the silver prices. MCX silver prices are trading 0.3 percent lowers on account of appreciation in rupee.
Base metals prices are trading higher tracing reports that the German Industrial production rose in the month of November. There are also expectations that the Chinese economic growth in the fourth quarter of 2012 might rise. However, strength in the DX capped gains in the prices.
In the domestic market, prices are trading higher tracking firmness in the international prices. In the domestic markets, appreciation in the rupee acted as a bearish factor for the base metal prices on MCX.
Copper prices are trading 0.3 percent higher till 4:30p.m today. Rise in the industrial production in Germany acted as supportive factor for the copper prices. However, rise in the copper inventories along with strength in the DX restricted gains in the copper prices today. In the domestic market Copper prices are trading on a flat note.
Appreciation in the rupee restricted gains in the copper prices on MCX. Crude oil prices are trading 0.6 percent down on expectation of rise in the U.S crude oil inventories along with strength in the DX. In the domestic markets, crude oil prices gained tracing firmness in the international prices.
In the evening session, we expect precious metal to trade with an upward bias owing to expectations of rise in the demand from China, one of the major consumers. Base metal prices are expected to trade firm due to favorable industrial production from Germany along with hopes of rise in economic growth of China in the fourth quarter of 2012. This is likely to create positive sentiments and increase the risk appetite.
Crude oil prices are likely to trade with a bearish note due to expectation of rise in the US crude oil inventories to be released in the later part of the day. However, strength in the DX is expected to restrict gains in the commodities.