Last Updated : February 22, 2010 22:15
Gold rises to $1130 but falls; copper, oil prices drop
Spot Gold prices consolidated and traded near day’s low around 4.15 pm IST after climbing to a one-month high of $1130 against the dollar in the morning session. The yellow metal has been taking cues from the movement in the dollar. Concerns over the interest rates to be increased by the Federal Reserve have reduced on the back of subdued inflation coupled with rising unemployment claims in the US.
This had lead to weakening in the low yielding dollar as there is a speculation that the Federal Reserve policy makers may keep interest rates close to zero to help support the economic recovery. However, markets remain wary of the crisis in Greece and Eurozone. The dollar may rebound in case the problems get worse.
Copper prices on the LME dropped from a four-month high as the dollar remained firm above its 80-mark. The Shanghai markets opened today after a week long holidays. Prices of copper faced pressure from the strength in dollar and a marginal increase in copper inventories on the LME. Copper inventories increased by 250 tonnes to touch 555025 tonnes today.
The red metal had gained more than 9% last week on the LME, the most in seven months on an improved US economic outlook. However, the strength in dollar on the back of concerns of recovery in Greece and other countries in Eurozone have put pressure on prices of commodities.
Crude Oil prices traded slightly below $80 a barrel as strength in the dollar exerted pressure on prices. Oil prices traded on a positive note last week despite rise in inventories in the US. Moreover, the Chinese markets which opened today may help prices to gain.
Iran’s OPEC governor Mohammad Ali Khatibi said that global consumption may climb as much as 1.4 million barrels a day in second half of 2010. However, strength in the dollar would put pressure on the prices of crude oil.
Outlook There is no economic data to be released form the US today. Commodity prices will take cues from the movement in dollar. The dollar may weaken as the concerns of the Fed raising its interest rates have reduced. The opening of Chinese markets may prove to be a boost to the prices of commodities. Gold and crude oil prices will take cues from movement in the dollar. If the dollar strengthens, commodity prices including gold and crude oil may suffer.
Courtesy: Angel Commodities Explore CommodityOnline Mobile Services
MCX GOLD.995 05 June 2012
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Rs 28259 , up Rs. 139 . What's your view on it?
