Spot Gold prices gained 0.4% and were trading around $1252/oz till 3.45 pm IST today. The yellow metal prices gained mainly on the back of weakness in the US Dollar Index (DX) today. Gains in gold prices were capped as a revival in risk sentiments led to reduced demand for gold. Rise in risk appetite boosted demand for higher-yielding investments. On the MCX, gold prices were trading on a flat note and were hovering around at Rs 19,128 till 3.45 pm IST.
Copper prices gained around 1.5% on the LME, touching an intra-day high of $7575/tonne till 3.45 IST today. The red metal prices jumped due to weakness in the DX coupled with positive sentiments in the financial markets today. On the MCX platform, copper prices gained more than 1.6% and were hovering around Rs.355/kg till 3.45 pm IST today.
The metal hit an intra-day high Rs.355.50/kg today. Moreover, positive manufacturing data from China, the world’s fastest growing economy today resulted as a supportive factor for copper today. Copper inventories on the LME increased 250 tonnes to reach 398,775 tonnes today.
Crude oil prices gained almost 1% on the Nymex today, as weakness in the DX coupled with positive data from China supported a rise in prices. Manufacturing in China climbed to 51.7 in August as against 51.2 in July. Better-than-expected manufacturing data raised optimism in the financial markets and thereby provided support to oil prices.
However, on the MCX platform, oil prices declined by 0.8% and were trading around Rs. 3423/bbl till 3.45 IST today. Appreciation in the Indian Rupee by 0.5% capped gains in crude oil prices on the Indian platform.
Outlook
On the macroeconomic front, a host of economic data is expected to be released from the US today. ISM manufacturing PMI, construction spending, total vehicles etc. will be announced in the evening. Copper and crude oil prices are expected to come under pressure if economic data comes on the negative side.
This could trigger strength in the DX as negative data indicates slow recovery in the US, the world’s largest economy. Gold prices are expected to trade with a positive bias as weak economic data is expected to spur demand for the yellow metal as a safe-haven.
Courtesy: Angel Commodities
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