European markets traded higher today ahead of Italian Senate votes on austerity measures to tackle its debt crisis and a new unity government takes charge in Greece.
The Shanghai Futures Exchange (SHFE) will increase trading margins for copper and aluminium future contracts by one percentage each to 9 percent and 7 percent respectively. This rise will be effective from 16th November 2011. The exchange stated that the daily upward and downward trading limit for aluminium would be widened to 5 percent from the current 4 percent.
India's industrial output grew a much slower-than-expected by 1.9 percent in September from a year earlier as against a rise of 4.1 percent in the previous month. Manufacturing output rose an annual 2.1 percent in September as compared to a rise of 4.5 percent in the prior month.
Spot gold prices traded higher today on account of a weaker dollar that made gold look cheaper for holders of other currencies. The yellow metal touched an intra-day high of $1769/oz and was trading at $1763/oz till 4.45 pm IST. MCX Gold December contract dropped by 0.1 percent and was hovering around Rs28,659/10 gms till 4.45 pm IST today.
Silver prices slipped 0.5 percent till 4.45 pm IST today and touched an intra-day low $33.73/oz. However, further decline was cushioned on the back of dollar weakness. MCX silver also dropped by 0.4 and touched an intra-day low of Rs56,635/kg till 4.45 pm IST.
Weakness in the US dollar coupled with upbeat sentiments in the global markets on signs of easing political disorders in Italy helped base metals trade higher on the LME today, except zinc and aluminium. Shanghai weekly inventories of aluminium rose sharply by 14 percent to 139,013 tonnes this week. This acted as a negative factor for aluminium prices today.
Nymex crude oil prices gained by 0.1 percent today and are currently trading at $/98.26bbl till 4:45pm IST today, on speculation that signs of growth in the US economy and Europe’s measures to control debt crisis will drive demand for oil. Additionally, a weaker dollar also provided further support.
Outlook
We expect gold to trade with a sideways bias today, taking mixed cues from a weaker dollar and rise in risk appetite in the markets.
Base metals are expected to trade higher today, on the back of upbeat sentiments in the global markets coupled with dollar weakness.
However, if there is any negative news or developments from the Euro Zone then it will lead downside in the base metals.
Aluminium is expected to trade lower today taking cues from increase in Shanghai inventories coupled with rise in trading margin by SHFE.
Today, crude oil prices are expected to trade higher on account of a weaker dollar, expected winter demand and positive sentiments in the global markets.
Courtesy: Angel Commodities
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