Spot Gold prices gained marginally today till 4.30 pm IST and rise in prices was capped as economic concerns world-wide led the greenback to rise. The low-yielding dollar gained today on the back of mixed economic data from US coupled with concerns of Greece.

The European financial ministers have not yet declared a concrete financial aid to Greece. Moreover, other economies in the Eurozone comprising of Spain, Portugal and Italy are also facing deficit problems. This is affecting the euro and the dollar is gaining on the back of a safe-haven investment.

Copper prices traded in the negative territory today till 4.30 pm IST as the dollar index revived back touching a high of 80.05 against a basket of six major currencies. Re-emergence of debt issues in the Eurozone coupled with concerns of Chinese government increasing interest rates is weighing on the metal prices.

Moreover, mixed economic data from US and other developed economies is also hampering the investor sentiment. Copper inventories on the LME are declining constantly and this factor could cushion the downside.

Crude oil prices remained a little unchanged as the strength in the dollar was exerting pressure on crude oil prices. However, OPEC’s decision to leave production quotas unchanged for a further period underpinned the prices. The US energy department reported yesterday that crude oil inventories rose by 1 million barrels last week. However, the increase was less than forecasts which helped the prices to gain yesterday.

Outlook

A host of economic data is expected to be released form the US today, later in the evening. The economic updates comprise of unemployment claims, current account, manufacturing index etc. The economic updates would be influential in providing further direction to the prices of commodities. Data released from the world’s largest economy this week has not been very encouraging.

If the trend continues today, we may see the dollar gaining further strength, which may affect the dollar-denominated commodities, including metals. Gold prices would trade with a negative bias if the dollar strengthens. Crude oil prices will take cues from the economic data announcements and the movement in the greenback.

Courtesy: Angel Commodities

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