Precious metals, crude may trade sideways with upward bias
Angel Commodities has come out with its report on international commodities. According to the research firm, in today's evening session precious metals, base metals and crude oil prices are expected to trade sideways with upward bias on the back of upbeat global market sentiments ahead of economic data from the US.
September 07, 2012 / 18:28 IST
Angel Commodities has come out with its report on international commodities. According to the research firm, in today's evening session precious metals, base metals and crude oil prices are expected to trade sideways with upward bias on the back of upbeat global market sentiments ahead of economic data from the US.
- German Industrial Production increased by 1.3 percent in July.
- Producer Price Index (PPI) Input gained to 2 percent in August.
- LME Copper inventories rose 1.3 percent in today’s trading session.
European equities are trading on a positive note on the back of favorable outcome from the European Central Bank meeting yesterday wherein policymakers agreed upon unlimited bond buying plan. Asian markets ended on an upbeat note and US stock futures are trading in the green.German Trade Balance was at a surplus of 16.1 billion Euros in July as against previous surplus of 16.3 billion Euros a month ago. French Trade Balance was at a deficit of 4.3 billion Euros in July as compared to previous deficit of 6.1 billion Euros in prior month. German Industrial Production increased by 1.3 percent in July with respect to decline of 0.4 percent in previous month.UK's Manufacturing Production rose by 3.2 percent in July as against a decline of 2.9 percent a month ago. Producer Price Index (PPI) Input increased by 2 percent in August from previous rise of 1.3 percent in July. Industrial Production grew by 2.9 percent in July with respect to decline of 2.5 percent a month ago.Spot gold prices declined 0.4 percent today till 4:30pm IST. However, weakness in the US Dollar Index (DX) coupled with upbeat global market sentiments cushioned sharp fall in the prices. In the Indian markets appreciation in the Rupee added downside pressure on the yellow metal prices.Taking cues from fall in gold prices, Spot silver prices also declined around 1.13 percent today. However, weakness in the DX coupled with upside in the base metals group restricted further fall in the prices. Appreciation in the Indian Rupee added further downside pressure on the prices on the MCX.The base metals pack traded on a positive note on the back of rise in risk appetite in the global markets along with weakness in the DX. Additionally, mixed LME inventories also supported upside in the prices.Copper, the leader of the base metals complex increased 1.9 percent on the back of upbeat global market sentiments along with weakness in the DX. However, increase in LME Copper inventories by 1.3 percent which stood at 215,950 tonnes capped sharp gains in the red metal prices.Nymex crude oil prices increased 0.9 percent taking cues from optimistic outcome from the ECB meeting yesterday wherein European policymakers agreed on for unlimited bond buying along with weakness in the DX. However, sharp upside movement in the prices was capped on account of expectations that crude oil prices are very high which will curb the demand for the fuel and add downside pressure on the prices.
Outlook: In today’s evening session we expect precious metals, base metals and crude oil prices to trade sideways with upward bias on the back of upbeat global market sentiments ahead of economic data from the US. Additionally weakness in the DX would also act as a supportive factor for the precious metals.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.To read the full report click on the attachment 
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