LONDON (Commodity Online): European markets erased its earlier gains and traded lower today after rallying yesterday to a six-month high, as oil producers declined. Royal Dutch Shell Plc and BP Plc, Europe’s two biggest oil companies, fell at least 1.5 percent. However, in the initial part, markets traded higher due to positive global manufacturing data.
France sells up to 8 billion Euros of bonds including a new 10-year OAT. Spain sold 4.56 billion Euros ($6 billion) of bonds, just above its target of 4.5 billion Euros at the auction.
Spot Gold prices in the international markets were trading higher by 0.3 percent at $1747/oz till 4.30 pm IST today. However, sharp gains were capped due to a stronger dollar. Prices in the domestic markets traded lower and were hovering around Rs28,098/10gm till 4.30 pm IST. Appreciation in the Indian Rupee led to downside in the domestic bourses today.
Spot Silver prices came under pressure taking cues from mixed performance in the base metals space and a stronger dollar and was trading at $33.60/oz today till 4.30 pm IST. Additionally, prices in the domestic markets declined by 0.6 percent and were trading around Rs56,516/kg till 4.30 pm IST. The Indian Rupee appreciated around 0.2 percent and was trading around 49.09 till 4.30 pm IST today.
Copper prices came under pressure today as gains in the past month kept Chinese buyers away and the Euro Zone debt crisis continued to weigh on sentiment. LME Copper was down by 0.6 percent at $8400/tonne till 4.30 pm IST and in the Indian markets prices were trading lower by 0.7 at Rs415.80/kg. Additionally, a stronger dollar also exerted further downside pressure on prices. Nymex Crude Oil prices declined by 0.5 percent today taking cues from rise in US crude oil inventories coupled with decline in Gasoline consumption. Additionally, a stronger dollar also acted as a negative factor for the commodity.
Oil prices were trading around $97.04/bbl till 4.30 pm IST. On the MCX, prices declined sharply by 1.5 percent on account of a stronger Rupee and were hovering around Rs4787/bbl till 4:30pm IST today.
Today's Outlook
Despite dollar strength Gold prices are expected to trade higher today. Technically the yellow metal is poised for upside in today’s trading session.
Silver will take cues from a stronger dollar and downside in base metals.
Base metals are expected to come under pressure today on the back of weak sentiments in the global markets coupled with ongoing concerns over Euro Zone debt worries. Additionally, dollar strength will also act as a negative factor for the red metal.
We expect crude oil prices to trade lower today on the back of rising US crude oil inventories coupled with a stronger dollar. Additionally, mixed sentiments in the global markets will also exert further downside in oil prices.
