Precious metals, Crude may trade with negative bias: Angel

Angel Commodities has come out with its report on international commodities. According to the research firm, precious metals, base metals and crude oil are expected to trade with negative bias owing to weak global market sentiments and strength in the dollar index.

• German Flash Manufacturing PMI down at 43.3 level in July.
• LME copper inventories declined by 0.4 percent today.
• European Manufacturing PMI fell to 44.1-level in current month.

European equities are trading on a bearish note on the back of rising concerns of the Euro zone debt. Asian markets although closed on mixed note and US stock Futures are trading with a negative bias. German Flash Manufacturing PMI declined by 1.7 points to 43.3-level in July as compared to previous level of 45 in last month. German Flash Services PMI declined marginally by 0.2 points to 49.7-mark in current month with respect to rise of previous level of 49.9 in June.

European Flash Manufacturing PMI declined by 1 point to 44.1-level in current month when compared to previous rise of 45.1-mark in last month. Flash Services PMI rose by 0.5 points to 47.6-mark in July from previous level of 47.1 in June.

Spot gold prices decline 0.2 percent today due to strength in the US Dollar Index (DX) along with bearish global market sentiments. Domestic gold prices on the MCX also traded lower 0.1 percent till 4:30 p.m. Sharp down side in the prices was cushioned due to deprecation in the Indian Rupee.

Tracking bearishness in the gold and base metals pack spot silver prices declined 0.4 percent till 4:30 p.m. Silver prices on the MCX declined 0.3 percent and was hovering around Rs.52,770/kg till 4:30 p.m today. Depreciation in the Indian rupee however cushioned sharp fall in the white metal.

The base metals pack traded on a negative note on the back of weak global market sentiments, strength in the DX along with unfavorable economic data from Euro Zone. However, sharp decline in prices was cushioned on account of decline in LME inventories. Copper the leader of the base metals complex declined around 0.4 percent on the LME and hovered around $7,405/tonne today till 4:30pm IST. Further decline in copper prices was prevented taking cues from decline in LME copper inventories by 0.4 percent and stood at 251,450 tonnes.

Nymex crude oil prices traded on a flat note on the back of increase in Chinese manufacturing PMI. On the other hand upside movement in prices was capped on account of unfavorable economic data from Euro Zone coupled with strength in the DX. On the domestic bourses, prices declined by 1.2 percent and hovered around Rs.5,005/bbl today till 4:30pm IST. Depreciation in the Indian Rupee restricted sharp fall in crude prices on the MCX.

The American Petroleum Institute (API) is scheduled to release its weekly inventories today and US crude oil inventories are expected to remain unchanged for the week ending on 20th July 2012.

Outlook: In the evening session we expect precious metals, base metals and crude oil to trade with negative bias owing to weak global
market sentiments and strength in the dollar index.

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