European stocks came under pressure today as the bailout package agreement on Greece got delayed, thus affecting sentiments even in the Asian markets which closed in the negative territory today. Dow Jones futures are also trading in the red and negativity with respect to Greece could lead to further risk aversion in the global markets.
Spot gold prices declined by 0.6 percent today as a stronger dollar made the yellow metal look expensive for holders of other currencies. Gold prices touched an intra-day low of $1714/oz and are trading around $1718/oz till 4:30pm IST today. On the MCX, prices declined around 0.6 percent today and were hovering around Rs.28,195/10gms till 4:30pm IST.
Taking cues from fall in gold and base metals, spot silver prices declined around 0.7 percent today. The white metal touched an intra-day low of $33.38/oz and were hovering around $33.62/oz till 4:30pm IST today. On the MCX, prices decreased by 0.4 percent and trading around Rs.56,940/kg till 4:30pm IST.
Amongst the base metals pack, Copper declined the most while only Aluminium is trading in the green. LME copper prices declined by 0.8 percent today and were hovering around $8666/tonne and touched an intra-day low of $8645/tonne. On the MCX, Copper prices fell by 0.3 percent and were trading around Rs.432.70/kg till 4:30pm IST.
Nymex crude oil prices declined by 1.1 percent today on the back expectations that European economic debt concerns will worsen further and curb the demand for fuel. Additionally, a stronger dollar also acted as a negative factor for the commodity.
OPEC and EIA have downgraded demand growth forecasts for crude oil for this year and this factor is also adding pressure on prices despite ongoing Iran related supply-worries.
Oil prices are trading around $98.74/bbl after touching an intra-day low of $98.53/bbl till 4:30pm IST. On the MCX, prices fell by 0.6 percent and are hovering around Rs.4912/bbl till 4:30pm IST today.
Outlook
Taking cues from weak global market sentiments surrounded by negativity over Greece, the US Dollar Index is expected to strengthen.
Risk aversion could continue ahead of the weekend today as uncertainty over the bailout to Greece persists.
This factor is expected to add downside pressure on prices of precious metals, base metals and crude oil. The decline in crude oil will also be aided by the weak global demand growth forecasts.
Courtesy: Angel Commodities
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