Gold Copper and Crude Oil may trade negative on weak Euro zone data

Spot gold prices declined by 1.54 percent today on the back of strength in dollar index. Further rise in stock markets has led to decline in demand for safe haven. Further, SPDR gold trust holding is near to 4 years low acted as a negative factor. However, favourable German trade balance cushioned sharp fall in the prices. In the Indian markets, depreciation in the Rupee cushioned sharp fall in the prices.

Taking cues from decline in spot gold prices, spot silver prices decreased by 1.23 percent. Further, strength in DX added downside pressure. However, rise in risk appetite in the global market sentiments coupled with favorable economic data from Germany prevented sharp downside in the prices. In the Indian markets, depreciation in the Indian Rupee prevented sharp fall in the prices.

The base metals pack traded on a mixed note on the back of strength in DX along with upbeat global market sentiments. Favorable economic data from Germany along with decline in LME inventories cushioned sharp fall in the prices. In the Indian markets depreciation in the Indian Rupee cushioned sharp decline in the prices.

Copper, the leader of the base metals group increased by 0.20 percent today on the back of optimistic global market sentiments coupled with favorable economic data from Germany. Further, decline in US initial jobless claims supported prices to trade in green. Additionally, decline in LME inventories acted as positive factor. However, weak economic data from UK along with strength in DX capped sharp upside in the prices.

Nymex crude oil prices fell by 0.89 percent today on the back of strength in dollar index coupled with weak economic data from UK. Further, cut in the global demand for crude oil by EIA coupled with expectations of increase in OPEC output by more than 2 percent added downside pressure on the prices. However, upbeat global market sentiments along with rise in Imports and Exports data from Germany prevented sharp fall in the prices.

In the evening session, we expect precious metal, base metal and crude oil prices to trade on the negative note on the back of strength in DX coupled with weak economic data from UK. Further, investors will keep an eye on Fed chairman Bernanke speech which may keep prices under pressure. However, optimistic global market sentiments along with rise in German export and import data may cushion sharp downside in the prices.

Courtesy: Angel Commodities

Source: http://www.commodityonline.com/futures-trading/market-report/Gold-Copper-and-Crude-Oil-may-trade-negative-on-weak-Euro-zone-data-29930.html

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