Bullions remained firm today, clawing back some of the previous day's decline as the dollar dipped against the euro but gains were capped due to equities improved. The dollar is likely to stay a key driver for gold in the near term and the strength it derives from risk-averse investor demand is expected to be tested by upcoming data including U.S. manufacturing report by the Institute for Supply Management and Thursday's U.S. payrolls report, traders said. The depreciation in USD provided some resistance to the MCX gold prices otherwise we could have seen much higher levels by the evening.
Crude Oil inched up above $71 a barrel on Wednesday following a large drop in crude inventories in the United States, the world's top energy consumer, and output disruptions from militant attacks in Nigeria. The U.S. Energy Information Administration (EIA) is also expected to show a fall in crude inventories due to higher refinery runs ahead of the Independence Day weekend. OPEC's policy to keep output cuts intact since last year has started to be reflected into some statistics and traders would be watching U.S. crude import volumes in the EIA statistics, Jakob said. Export disruptions from Nigeria, an OPEC member and Africa's top oil producer, have also provided support to oil prices.
Base metals remained subdued as traders are eyeing on data to be released. U.S. ADP employment report for June releases, Economists in a Reuters survey expect 393,000 jobs were lost in June, down vs a May job loss figure of 532,000. U.S. ISM for June. The Institute for Supply Management releases its June manufacturing index. Economists in May, U.S. Pending Home Sales for May. National Association of Realtors issues Pending Home Sales for May. Economists in a Reuters survey expect a reading of 6.7 percent, unchanged from the prior month.
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