Bullion, base metals, crude to trade on firm note: Angel

Angel Commodities has come out with its report on international commodities. According to the research firm, precious metals, base metals and crude oil prices are expected to trade on a firm note due to rise in the risk appetite amongst market participants ahead of the US jobs data and weakness in the DX.

• French CPI declined by 0.3% in September
• India’s Trade Balance was at deficit of $18.1 bn in last month.

European equities are trading on a positive note today ahead of the US jobless claims data and higher sales reported from a luxury goods maker. Asian markets traded on a mixed note and US stock futures are trading in the green.

Japan’s Consumer Confidence declined by 0.4 points to 40.1-level in September from previous rise of 40.5-mark in August.

French Consumer Price Index (CPI) declined by 0.3 percent in September as against a rise of 0.7 percent in August.

India’s Trade Balance was at a deficit of $18.1 billion in September from previous deficit of $15.6 billion in August.

Spot gold prices increased 0.5 percent today on the back of rise in risk appetite in the global markets. Additionally, weakness in the US Dollar Index (DX) also supported an upside in the prices. However, appreciation in the Indian Rupee added downside pressure on the prices on the MCX.
Taking cues from rise in gold prices along with upside in the base metals prices, Spot silver prices gained 0.7 percent today. Additionally, weaker DX also acted as a positive factor for the whit metal prices.

Base metal prices rose today due to rise in the risk appetite amongst market participants ahead of the US jobs data and strength in the US Dollar Index (DX).

Copper prices gained 0.8 percent today due to rise in the risk appetite and weakness in the DX. However, sharp rise in the copper prices were capped on the back of rise in the LME inventories.

Nymex crude oil prices gained 0.6 percent taking cues from expectations of supply concerns from Middle East region after tension continues between Syria and Turkey coupled with weakness in the DX. However, sharp upside in the prices was capped as a result of forecast of rise in US crude oil inventories.

The US Energy Department (EIA) is scheduled to release its weekly inventories report today at 8:00pm IST and US crude oil inventories is expected to rise by 0.8 million barrels for the week ending on 5th October 2012.

Outlook: In the evening session, we expect precious metals, base metals and crude oil prices to trade on a firm note due to rise in the risk appetite amongst market participants ahead of the US jobs data and weakness in the DX.

However, rise in the risk aversion might be witnessed if US jobless claims come as forecasted and might increase the demand for the low yielding currency that is DX. This will exert a downside pressure on the commodities. US jobless claims are forecasted to rise in the last week.

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