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Jun 13, 2012, 05.23 PM IST | Source: Moneycontrol.com

Precious, base metals may trade on a positive note: Angel

Angel Commodities has come out with its report on international commodities. According to the research firm, precious metals and base metals are expected to trade on a positive note on the back of rise in risk appetite in the global markets coupled with weakness in the DX.

Angel Commodities has come out with its report on international commodities. According to the research firm, precious metals and base metals are expected to trade on a positive note on the back of rise in risk appetite in the global markets coupled with weakness in the DX.

  • US retail sales expected to decline by 0.1 percent in May.
  • LME Copper inventories rose by 1.6 percent today.
  • US crude oil inventories expected to decline by 1.4 mn bbl - Reuters.
European equities are trading on a mixed note on the back of rise in borrowing costs for the German bond auctions. Asian markets ended on a positive note and US stock futures are trading on a flat note. Spot gold prices are trading on a flat note today, taking cues from mixed market sentiments. The yellow metal touched an intra-day high of $1615/oz and hovered around $1609/oz till 4:30pm IST today. In the Indian markets prices are trading on a flat note on account of appreciation in the Indian Rupee and the MCX gold near month futures contract traded around Rs. 29,981/10 gm today.

Spot silver prices declined around 0.4 percent in today’s trading session. However, rise in gold prices, upside in the base metals pack along with weakness in the US Dollar Index (DX) cushioned further fall in silver prices. The white metal touched an intra-day low of $28.73/oz and traded around $28.83/oz today. On the MCX, the Silver July contract traded on a flat note on the back of appreciation in the Indian Rupee and hovered around Rs.55,074/kg after touching an intra-day high of Rs.55,267/kg till 4:30pm IST today.

The base metals complex traded on a positive note today on the back of rise in risk appetite in the global markets couple with weakness in the DX. Copper, the leader of the base metals group gained by 0.4 percent on the LME. However further upside in prices was capped on the back of rise in LME copper inventories by 1.6 percent at 243,425 tonnes. The red metal prices touched an intra-day high of $7471/tonne and hovered around $7431/tonne till 4:30pm IST today.

Nymex crude oil prices swung between gains and losses on the back of expectations of decline in US crude oil inventories coupled with weakness in the DX. On the other hand, the International Energy Agency (IEA) monthly report showed that world crude oil supplies rose by 200,000 barrels to 91.1 million barrels a day in May. Crude oil output increased on account of rise in crude production in US and Canada.

The US Energy Department (EIA) is scheduled to release its weekly inventories report today at 8:00pm IST and US crude oil inventories are expected  to decline by 1.4 million barrels for the week ending on 8th June 2012. Gasoline stocks are expected to rise by 1.1 million barrels whereas distillate inventories are also expected to gain by 1.3 million barrels for the same period.

Outlook
In today’s session, we expect precious metals and base metals to trade on a positive note on the back of rise in risk appetite in the global markets coupled with weakness in the DX.

In case of crude oil, prices will trade on a range bound note on the back of expectations of decline in US crude oil inventories along with weakness in the DX.

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