Commodities rally on optimism about Greece bailout

By Gautam Broker, Research Analyst at CNBC-TV18

Commodity cues

Commodities rallied on optimism about Greece bailout yesterday. CRB index ended up 1.7% - biggest gain in over a month.

Market ignores weak US macro data. Consumer confidence was down to 58.5 as against 61.7 in May. Case-Shiller Home price index was down 4%.

Brent crude settled up 2.5% at USD 108.6/barrel yesterday; it was hovering around the same level today as well. WTI crude closed at USD 92.7/barrel.

API says stockpiles went down 2.7 million barrels.

Gold futures ended at USD 1504/ounce on Tuesday. LME Copper settled up 0.9% at USD 9049/tonne. Copper was in the green today as well.

One should watch out for pending home sales and EIA petroleum status report today.

Admisi has recommended buying gold MCX August contract Rs 22070 per 10 gram, with a stoploss at Rs 22019 and target at Rs 22290.