Precious, base metals, crude may trade on a negative note

• US Dollar Index gained by 0.4 percent today.
• Spot silver prices declined around 0.8 percent.
• US New Home sales data expected to increase today.
• Nymex crude oil prices declined around 1 percent.

European equities are trading on a negative note ahead of the auction of Italian and Spanish bonds. Asian markets ended lower today and US stock futures are trading in the red.

Spot gold prices declined around 0.3 percent today on the back of rise in risk aversion in the global markets coupled with strength in the US Dollar Index (DX).

The yellow metal touched an intra-day low of $1565/oz and hovered around $1567/oz till 4:30pm IST. On the domestic front, prices declined around 0.2 percent on the back of appreciation in the Indian Rupee and was trading around Rs.29,885/10 gm today. Taking cues from fall in gold prices coupled with downside in base metals pack, Spot silver prices declined around 0.8 percent today. Additionally, a stronger DX also exerted downside pressure on silver prices.

The white metal touched an intra-day low of $26.61/oz and was trading around $26.69/oz today. On the MCX, Silver July contract, declined around 0.5 percent and closed at Rs.52,603/kg after touching an intra-day low of Rs.52,307/kg till 4:30pm IST today.

The base metals complex traded lower today on the back of weak global market sentiments coupled with strength in the DX. Copper the leader of the base metals pack declined around 0.2 percent on account of rise in LME Copper inventories today.

The red metal prices touched an intra-day low of $7310/tonne and hovered around $7322/tonne till 4:30pm IST today. In the Indian markets prices declined by 0.6 percent on account of appreciation in the Rupee and were trading around Rs.414/kg today.

Nymex crude oil prices declined around 1 percent on the back of expectations that European debt crisis will curb demand for fuel coupled with estimates of tropical storm will move away from Gulf of Mexico and will not harm any oil rigs. Additionally, a stronger DX will also act as a negative factor for the prices.

Crude oil prices touched an intra-day low of 78.91/bbl and hovered around $78.98/bbl today. On the domestic bourses, prices declined by more than 1.5 percent and was trading around Rs.4,533/bbl till 4:30pm IST today.

Outlook
In the evening session, we expect precious metals, base metals and crude oil prices to trade on a negative note on the back of rise in risk aversion in the global markets coupled with strength in the DX. However, US Home Sales data is expected to come on a positive note and this can cushion sharp fall in the prices.

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