European markets recovered from its earlier losses and traded higher today, taking cues from improved economic sentiments data from Germany. German ZEW Economic Sentiment increased to 5.4-mark in February from the level of -21.6 in prior month.
Asian markets also ended in green territory as Japanese markets revived after the central bank unexpectedly increased asset purchases today. India’s inflation eased to the lowest level in two years and stood at 6.55 percent in January from the previous level of 7.47 percent in December.
Spot Gold prices erased most of its earlier losses and was trading at $1719/oz till 4.30 pm IST today. Revival in the markets due to upbeat economic data from Euro Zone helped prices to recover. The yellow metal touched an intra-day low of $1712/oz till 4:30pm IST. On the MCX prices decreased by 0.2 percent and were hovering around Rs28,051/10gms till 4:30pm IST.
Taking cues from fall in gold prices, spot silver prices also declined around 0.4 percent today till 4:30pm IST. Additionally, a stronger dollar also acted as a negative factor for the commodity. The white metal touched an intra-day low of $33.30/oz and was hovering around $33.56/oz till 4:30pm IST today. On the MCX, silver March contract dropped by 0.2 percent and was trading at Rs56,545/kg today after touching an intra-day low of Rs56,220/kg till 4:30pm IST.
Improved German economic sentiment data and Japan central bank’s decision to increased asset purchases led revival in the global markets today. Taking cues from this, base metals complex traded higher on the LME till 4.30 pm IST today with nickel being an exception. However, depreciation in the Indian Rupee led further gains on the domestic bourses.
Nymex crude oil prices traded higher by more than 1 percent today on the back of expectations of escalating tensions between Iran and West countries which will lead to supply disruptions. Oil prices touched an intra-day high of $101.65/bbl and were hovering above $101/bbl till 4:30pm IST today. On the MCX, crude oil prices rose by 1.2 percent on the back of Rupee depreciation and touched an intra-day high of Rs5017/bbl till 4:30pm IST.
The American Petroleum Institute (API) is scheduled to release its weekly inventories today and crude oil inventories are expected to increase by 1.9 million barrels for the week ending on 10th Feb 2012.
Outlook
Revival in the global markets due to improved German economic sentiment data and Japan central bank’s decision to increase asset purchases will lead to weakness in the US dollar.
On account of this, we expect precious metals and base metals to trade higher today.
Crude oil prices are also expected to trade higher today, taking cues from supply concerns from Iran, dollar weakness and upbeat sentiments in the global markets. However, expected rise in US crude oil inventories may cap sharp gains in oil prices today.
Courtesy: Angel Commodities
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