Global market sentiments are expected to remain mixed on account of uncertainty surrounding the European economic scenario. Moody’s has indicated that it could cut ratings of banks in 15 European nations. The ratings agency has indicated that a rapid escalation of Europe’s sovereign debt crisis threatens the entire region.
Fitch ratings agency revised the outlook on the US credit rating from stable to negative after a special congressional committee failed last week to agree on at least $1.2 trillion in deficit-reduction measures. The agency gave US the time upto 2013 in order to come up with a plan to deal with its budget deficit. Fitch warned of US downgrade if no budget deal is presented in 2013.
Spot gold prices witnessed gains of around 0.2 percent till 4.45 pm IST today mainly taking cues from dollar weakness that made dollar denominated commodities cheaper for the holders of other currencies.
The yellow metal touched an intra-day high of 1717$/oz and was trading at the level of $1715/oz till 4.45 pm IST. MCX gold traded on a flat note and touched a low of Rs28,621/10 gms till 4.45 pm IST today.
Taking cues from rise in gold prices coupled with a weaker dollar, silver prices rose slightly by 0.1 percent today. Prices hit an intra-day high of $32.17/oz and were hovering around $32.07/oz till 4.45 pm IST.
The base metals complex delivered a mixed performance on the LME today with aluminium and nickel trading in the red while copper, lead and zinc are trading higher. However, further decline was cushioned on account of a weaker dollar. Nickel was the top loser of the day, as the metal declined around 0.6 percent on the LME and more than 0.2 percent on the MCX. The metal inventories rose almost 1 percent to 89,778 tonnes on the LME warehouse today which acted as a negative factor for metal prices.
Supply concerns in the Middle-East along with weakness in the US dollar helped crude oil prices trade higher by almost 1 percent today. Prices touched an intra-day high of $99.30/bbl and was trading at $98.89/bbl till 4.45 pm IST. MCX crude oil December contract gained sharply by 1.2 percent and was hovering around Rs5148/bbl till 4.45 pm IST today.
The American Petroleum Institute (API) is scheduled to release its weekly inventories today and crude oil inventories are expected to increase by 1 million barrels for the week ending on 25th November 2011.
Outlook
Gold and silver are expected to trade with a negative bias today, as Fitch revised US credit rating outlook to negative and Moody’s also indicated that it could cut ratings of banks in 15 European nations which may lead downside in the global markets. Silver will also take cues from fall in gold prices and downside in base metals.
Base metals and crude oil prices are expected to trade lower today as Fitch’s negative outlook on US credit rating and rising worries over Europe’s debt tensions will lead to weak sentiments in the global markets.
Additionally, expected rise in US crude oil inventories will also act as a negative factor for oil prices. However, supply worries in the Middle East may cushion sharp fall.
Courtesy: Angel Commodities
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