Precious metals and base metals prices will trade on a bearish note as Euro zone debt concerns are weighing on the global market sentiments resulting into strength in the DX. However, rise in the risk appetite might be witnessed if US unemployment claims comes on a favorable note. This is likely to create positive market sentiments pressuring US Dollar Index and supporting dollar denominated commodities.
Crude oil prices might witness rangebound trades as debt concerns in the Euro zone might cause demand to reduce from the region along with strength in the DX. However, expectation of decline in the US crude oil inventories in the later part of the evening today coupled with forecast of positive jobs data might support an upside in the crude prices. Renewed tensions in the Middle East might also push the prices upwards.
European markets are trading on a mixed note as European leaders failed to decide on further aid to Greece. This is creating bearish market sentiments. US Index futures are trading on a mixed note while Asian markets have also erased earlier gains of the day as the talks amongst European leaders over the Greece bailout ended in a deadlock.
Spot gold prices are trading on a weak note as European leaders failed to arrive at a decision to provide further aid to the Greece. Additionally, strength in the DX also acted as a bearish factor for the gold prices. The yellow metal is trading 0.1 percent lower today after touching a low of $1,720.3 per ounce and is currently trading around $1,726.1 per oz till 4:30 p.m.
In the domestic markets MCX Gold prices are trading on a flat note taking cues from spot gold prices. Depreciation in the Indian rupee cushioned sharp fall in the MCX gold prices.
Spot silver prices are trading 0.3 percent lower tracing weakness in the spot gold prices along with strength in the DX. Further, bearishness in the base metals pack also exerted downside pressure on the silver prices.
In the domestic markets MCX silver prices are trading higher due to depreciation in the rupee. Base metal prices are trading lower on the back of deepening Euro zone debt concerns along with strength in the DX. European leaders failed to arrive at a decision over the Greece bailout. They are likely to meet again on November 26, 2012.
Copper prices declined 0.5 percent owing to debt concerns of the Euro zone along with strength in the DX. However, sharp downside in the prices were cushioned owing to decline in the LME inventories. In the domestic markets prices are trading lower taking cues from bearishness in the international markets.
However, depreciation in the Indian rupee cushioned sharp fall in the Copper prices on MCX. NYMEX crude oil prices are trading 0.8 percent higher on renewed tensions in the Middle East and expectation that the US crude oil inventories might decline. In the domestic markets depreciation in the Indian rupee is acting as a supportive factor for MCX crude oil prices.