MUMBAI (Commodity Online): Precious, base metals and crude oil prices in the evening session are expected to trade with upward bias on the back of positive global market sentiments resulting from optimism that US President might be able to solve the fiscal cliff issue of the nation.

Expectation of positive existing home sales data in the later part of the evening today might also increase the risk appetite of the market participants. Continued tensions in the Middle East and there by expectation of disruption in the crude oil supplies might support an upside in the oil prices today.

Precious Metals

Spot gold prices are trading on positive note on the back of expectation that US President might be able to resolve the fiscal cliff issue with the Congress and draw a new budget. Weakness in the DX also supported an upside in the spot gold prices.

The yellow metal gained 0.5% today after touching a high of $1,724.20 per ounce and is currently trading around $1,722.7 per oz till 4:30 p.m.

In the domestic markets MCX Gold prices are trading on a flat note. Appreciation in the Indian rupee restricted sharp gains in the MCX gold prices.

Spot silver prices rose1.21% taking cues from strength in the spot gold prices along with weakness in the DX. Firmness in the base metal prices also supported an upside in the silver prices. Additionally, strength in the base metals pack is also acting as a supportive factor for the silver prices.

In the domestic markets MCX silver prices are trading higher tracing spot silver prices. Although, appreciation in the rupee restricted sharp gains in the silver prices.

Base Metals

Base metal prices owing to positive global market sentiments along with weakness in the DX. Optimism that the fiscal cliff in the US might be resolved in the coming days is creating positive market sentiments.

Copper prices increased 1.1% owing to supportive global market sentiments along with weakness in the DX. Additionally decline in the copper inventories also added to the gains of the copper prices.

MCX copper prices are trading 0.5% up taking cues from strength in the LME copper prices.

Energy

NYMEX crude oil prices surged 2.83% higher on the back of ongoing tensions in the Middle East and thereby expectation of disruption of supply. Weakness in the DX also supported an upside in the crude oil prices.

In the domestic markets appreciation in the Indian rupee capped sharp gains in the MCX crude oil prices.

Courtesy: Angel Commodities