In the evening session, we expect precious, base metals and crude oil prices to trade with a negative bias due to strength in the DX and worries of slower growth forecast of Germany next year by Bundes bank. This is creating bearish market sentiments and causing risk aversion amongst market participants.?
Additionally, rise in the risk aversion might be witnessed, if the US unemployment rate comes on an unfavourable note. This might exert downside pressure on the commodities. In the domestic markets, however, depreciation in the rupee might cushion sharp fall in the prices of commodities.
Precious Metals
Spot gold prices declined 0.1 percent on the back strength in the DX. Worries that Germany,largest economy in the Europe might witness a contraction in the economic growth in the next year is creating bearish market sentiments. Rise in risk aversion thereof is exerting downside pressure on the gold prices. In the domestic markets, depreciation in the Indian rupee has however supported gold prices on the upside in MCX .
Spot silver prices are also trading in the negative territory taking cues from the bearishness in the gold prices and base metals prices. Apart from this strength in the DX is also exerting downside pressure on the silver prices. Prices of silver on MCX are although trading higher due to depreciation in the Indian rupee.
Base Metals
The base metals pack traded on a negative note on account of concerns that the largest economy in the Europe might witness slower growth thereby raising concerns of weak demand from the region. Strength in the DX have also kept prices under downside pressure.
Copper, the leader of the base metals group rose 0.4 percent today on account of expectation of positive data from the Chinese economy along with optimism that the US law makers might be able to resolve the fiscal cliff issue of the nation. However, strength in the DX along with reports of lower growth in Germany next year and rise in the LME inventories capped sharp gains in the prices.
Energy
Nymex crude oil prices declined 0.13 percent today taking cues from cut in growth forecast for the Euro region by the European Central Bank (ECB) coupled with earthquake in Japan which can lead to decline in fuel consumption. Also a stronger DX acted as a negative factor for the crude oil prices.
In the evening session, we expect precious, base metals and crude oil prices to trade with a negative bias due to strength in the DX and worries of slower growth forecast of Germany next year by Bundes bank. This is creating bearish market sentiments and causing risk aversion amongst market participants.
Additionally, rise in the risk aversion might be witnessed, if the US unemployment rate comes on an unfavourable note. This might exert downside pressure on the commodities. In the domestic markets, however, depreciation in the rupee might cushion sharp fall in the prices of commodities.
Courtesy: angel Commodities
girl with the dragon tattoo ohio state basketball collateral dick cheney heart umf peter frampton elite eight
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.