Bullion, base metals, crude may trade firm today: Angel

Indian Industrial Production increased by 0.1 percent in July.
UK's Claimant Count Change declined by 15,000 in August.
European Industrial Production increased by 0.6 percent in July.

European equities are trading on a positive note on the back of German court ruling which allowed the country to ratify the euro-area bailout fund with certain conditions. Asian markets ended on a positive note and US stock futures are trading in the green.

Indian Industrial Production increased by 0.1 percent in July as against a decline of 1.8 percent a month ago. Manufacturing Output declined by 0.2 percent in July from previous decline of 3.2 percent in the month of June.

Italian Industrial Production declined by 0.2 percent in July as compared to previous decline of 1.3 percent a month ago. European Industrial production increased by 0.6 percent in July with respect to decline of 0.6 percent in June.

UK's Claimant Count Change declined by 15,000 in August from previous decline of 5,900 in July. Unemployment Rate increased to 8.1 percent in July as against previous rise of 8 percent a month ago.

Spot gold prices gained around 0.6 percent on the back of rise in risk appetite in the global markets. Additionally, weakness in the US Dollar Index (DX) also supported upside in the prices. In the Indian markets appreciation in the Rupee capped sharp gains in the prices.

Taking cues from rise in gold prices along with upside in the base metals complex, Spot silver prices gained 1.22 percent today.

Additionally, weakness in the DX also supported upside in the prices. The base metals pack traded on a positive note on account of upbeat global market sentiments along with weakness in the DX. However, sharp upside in the prices was restricted as a result of mixed LME inventories. Copper, the leader of the base metals gained 0.6 percent and hovered around $8,139.75/tonne today till 4:30pm IST. Increase in LME Copper inventories by 0.5 percent to 215,775 tonnes prevented sharp upside in the prices.

Nymex crude oil prices increased around 0.48 percent taking cues from expectations of decline in US crude oil inventories along with weakness in the DX. Appreciation in the Indian Rupee capped sharp gains in prices on the MCX.

The US Energy Department (EIA) is scheduled to release its weekly inventories report today at 8:00pm IST and US crude oil inventories is expected to decline by 2.6 million barrels for the week ending on 7th September 2012.

Outlook: In today’s session, we expect precious metals, base metals and crude oil prices to trade firm due to positive outcome from the German constitutional court ruling today which approved the bailout fund with conditions. Additionally, rising optimism from the US Federal Reserves two day meeting starting September 12, 2012, might hint for stimulus measures is also expected to support an upside in the commodities along with weakness in the DX. Crude oil prices in the evening today might also strengthen on the back of expected decline in the US crude oil inventories.

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