Asian stocks closed on a positive note today on the back of optimum talks of Greece debt crisis which are expected to end soon. European markets also rallied on account of this news and Dow Futures traded in positive territory.
Spot Gold prices gained by 0.1 percent today taking cues from a weaker dollar. The yellow metal touched an intra-day high of $1751/oz and was trading around $1746/oz till 4:30pm IST today. On the MCX, gold prices increased by 0.1 percent and were hovering around Rs.28404/10 gms till 4.30 pm IST.
Taking cues from rise in gold prices and upside in base metals pack, spot silver prices gained around 0.5 percent till 4:30pm IST today. The white metal touched an intra-day high of $34.48/oz and was hovering around $34.34/oz till 4:30pm IST today. On the MCX, Silver March contract rose around 0.7 percent and was trading at Rs.57,637/kg till 4:30pm IST today.
The base metals complex traded on a positive note today, on account of upbeat sentiments in the global markets on rising expectations that Greece’s government is near to secure a bailout package in order to avoid a potential sovereign debt default. Additionally, weakness in the US dollar also acted as a positive factor for metals.
Nymex crude oil prices increased by more than 1 percent today, on the back of decline in US crude oil inventories coupled with a weaker dollar. Additionally, rise in risk appetite in the markets also supported oil prices. It touched an intra-day high of $99.65/bbl and was hovering around $99.40/bbl till 4:30pm IST today. On the MCX, crude oil prices rose almost 1 percent and touched an intra-day high of Rs.4915/bbl till 4:30pm IST.
The US Energy Department (EIA) is scheduled to release it weekly inventories report today and crude oil inventories are expected to increase by 2.4 million barrels for the week ending on 3rd February 2012. Gasoline stocks are expected to increase by 700,000 barrels whereas distillate inventories are expected to decline by 700,000 barrels for the same period.
Outlook
On rising expectations that Greece’s government is near to secure a bailout package in order to avoid a debt default, we expect risk sentiments in the global markets to be upbeat.
On account of this, precious metals and base metals are expected to trade higher today. Additionally, a weaker dollar will also act as a supportive factor for prices.
We expect crude oil prices to trade positive bias today, on account of a weaker dollar coupled with positive sentiments in the markets.
However, expected rise in US crude oil inventories will cap sharp gains in oil prices.
Courtesy: Angel Commodities
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