Greek Finance Minister Evangelos Venizelos left for the meeting in Brussels today after political leaders was not successful to settle new austerity measures required to secure a 130 billion Euro ($173 billion) bailout package in order to avoid a potential debt default.
Spot gold prices declined around 0.2 percent today and touched an intra-day low of $1725/oz till 4.30 pm IST. However, rise in crude oil prices boosted inflation-led demand for gold and a weaker dollar also cushioned sharp downside in prices.
The yellow metal was trading at the level of $1730/oz till 4.30 pm IST today. On the MCX, Gold April contract gained around 0.5 percent today, as depreciation in the Indian Rupee led gains on the domestic bourses and touched an intra-day high of Rs28,365/10 gms till 4.30 pm IST.
Silver traded lower by 0.5 percent today, taking cues from fall in gold prices. However, further decline was not witnessed due to weakness in the US dollar. The white metal touched an intra-day low of $33.64/oz and was hovering around 33.78/oz till 4.30 pm IST. MCX Silver March contract rose around 0.5 percent on account of a weaker Rupee today.
The base metals pack traded on a mixed note on the LME today, with copper and nickel trading in the red, while aluminium, zinc and lead trading in the green. However, in case of copper and nickel sharp downside was cushioned on the back of Rupee depreciation on the domestic platform.
Nymex crude oil prices increased by more than 0.5 percent today, on the back of low temperatures in Euro Zone which increased demand expectations for fuel. Additionally, supply concerns from Iran and a weaker dollar also acted as a positive factor for the commodity.
Prices touched an intra-day high of $99.42/bbl and was hovering around $99.25/bbl till 4:30pm IST today. On the MCX, crude oil prices rose by 0.9 percent and touched an intra-day high of Rs.4917/bbl till 4:30pm IST.
Outlook
Uncertainty over Greece’s debt concerns will lead to rise in risk aversion in the global markets today. Taking cues from this, we expect strength in the US dollar in today’s trading session.
On account of this, precious metals and base metals are expected to trade with a negative bias today. However, any positive outcome from the Euro Zone from may lead to reversal in the markets.
We expect crude oil prices to trade with a sideways bias today, taking mixed cues from mixed sentiments in the markets coupled with supply concerns from Iran.
Courtesy: Angel Commodities
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