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May 25, 2012, 05.27 PM IST | Source: Moneycontrol.com

Expect Crude to trade with a negative bias today: Angel

Angel Commodities has come out with its report on international commodities. According to the research firm, Crude oil prices are expected to trade with a negative bias as economic data from the US is expected to come on the negative side.

Angel Commodities has come out with its report on international commodities. According to the research firm, Crude oil prices are expected to trade with a negative bias as economic data from the US is expected to come on the negative side.

CME group cuts gold & crude oil margins by 10% & 9.8% each.
US consumer sentiment expected to come on negative note.
LME copper prices increased around 1 percent today.

European stocks traded on a positive note today on the back of ease in concerns over Greece’s debt crisis, and Italy’s Prime Minister said that the country would most likely remain a part of the Euro Zone. Asian markets ended on a positive note and US stock futures are also trading in the green.

Spot gold prices increased by 0.3 percent today on the back of weakness in the US Dollar Index (DX). The yellow metal touched an intra-day high of $1561/oz and hovered around $1562/oz till 4:30pm IST today. On the domestic front, prices declined around 0.4 percent on account of appreciation in the Indian Rupee and prices were trading around Rs.28,773/10 gms today.

Taking cues from upside in gold prices coupled with rise in base metals, Spot silver prices gained around 0.1 percent today. The white metal touched an intra-day high of $28.40/oz and was trading around $28.27/oz today. On the MCX, prices declined around 0.3 percent as appreciation in the Rupee added pressure on the commodity and touched an intra-day low of Rs.53,882/kg till 4:30pm IST today.

The base metals complex traded on a positive note on the back of weakness in the DX coupled with decline in LME inventories.

Copper, the leader of the base metals pack, gained by 0.9 percent today as LME copper inventories declined and helped upside in prices. However, further upside was capped as copper traders are globally remained bearish due to slow growth in Chinese and European economies. Copper prices touched an intra-day high of $7,680/tonne and hovered around $7,633/tonne till 4:30pm IST.

China is expected to boost its imports for zinc in the fourth quarter of the current year as infrastructure investment has speeded up. Nymex crude oil prices increased around 0.5 percent on the back of ease of worries over European debt crisis coupled with Iran’s agreement for the third round of meeting with world’s major powers.

Crude oil prices touched an intra-day high of $91.32/bbl and hovered around $91.07/bbl till 4:30pm IST. On the domestic bourses, prices declined by 0.5 percent on account of appreciation in the Indian and were trading around Rs.5,065/bbl after touching an intra-day low of Rs.5,061/bbl today.

Outlook
In today’s session we expect bullion prices to trade come under pressure as markets could succumb to concerns on the macroeconomic front ahead of the weekend. But sharp downside in prices will be limited as the CME group has reduced initial margins.

Crude oil prices are expected to trade with a negative bias as economic data from the US is expected to come on the negative side. Also, sentiments in the global markets could turn weak as risks associated with the European debt crisis continue.

Rising economic risks along with uncertainty over demand on the back of downgrade in global growth forecasts, will lead to downside pressure on base metal prices. The DX is expected to strengthen and thus will act as another bearish factor for prices in dollar terms.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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