European markets traded higher today as Greece parliament approved austerity measures in order to secure a second bailout package of 130 billion Euros. Asian markets also ended in a positive territory today and Dow Jones futures are trading in the green. Spot gold prices rose around 0.5 percent today on the back of weakness in the US dollar. As a weaker dollar makes dollar denominated commodities look cheaper for the holders of other currencies. The yellow metal hit a high of $1733/oz and was trading at $1728/oz till 4.30 pm IST today.
However, MCX Gold April contract witnessed a fall of around 0.5 percent on account of appreciation in the Indian Rupee. Prices touched an intra-day low of Rs28,124/10gms and were hovering around Rs28,134/10gms till 4.30 pm IST.
Silver prices gained sharply by more than 1 percent today, taking cues from rise in gold prices coupled with upside in base metals.
Additionally, dollar weakness also acted as a further supportive factor for prices. The white metal touched an intra-day high of $34.01/oz and was hovering around $33.82/oz till 4.30 pm IST. MCX Silver March contract dropped 0.3 percent till 4.30 pm IST today on account of a stronger Rupee.
Weakness in the US dollar coupled with upbeat sentiments in the global markets due to easing worries with respect to Euro Zone debt concerns led base metals complex to trade higher on the LME today.
However, appreciation in the Indian currency led metals to trade lower on the domestic bourses today.
Nymex crude oil prices increased almost 1 percent today, on the back of easing tensions over Greece debt worries and dollar weakness. Additionally, sanctions on Iran got more tighten after Overseas Ship holding Group (OSG) Frontline Ltd which controls over 100 super oil tanks stopped loading the cargos for Iranian crude oil and increased supply concerns for crude oil.
Prices touched an intra-day high of $99.97/bbl and was hovering around $99.59/bbl till 4:30pm IST today. On the MCX, crude oil prices rose slightly by 0.1 percent as further gains were capped due to Rupee appreciation and touched an intra-day high of Rs4929/bbl till 4:30pm IST today.
Outlook
Easing concerns with respect to Greece debt crisis will result in upbeat sentiments in the global markets today. On account of this, we expect the US dollar to remain weak in today’s trade.
On the back of this, precious metals, base metals and crude oil prices are expect to trade higher today. Further tightening on sanctions on Iran after OSG stopped loading the cargos for Iranian crude oil will create supply concerns for the commodity and this news will further be supportive for oil prices.
Courtesy: Angel Commodities
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