#Gold, Silver may trade higher as Russia-Ukraine crisis spur safe haven demand European equities are trading on a negative note today ahead of crucial economic data from the US in the evening session. Asian markets ended lower and the US stock futures are trading in the green. China’s Industrial Production fell to 8.6 percent in February from 9.7 percent in January. Fixed Asset Investment fell to 17.9 percent in February from 9.6 percent in January. Indian Rupee appreciated by around 0.3 percent today on the back of favourable inflation and manufacturing data from the country. Also, dollar selling as a result of strong capital inflows and positive domestic markets supported the currency which touched a high of 60.91 till 4:00pm IST. Spot gold prices are trading higher by around 0.4 percent today on the back of rise in haven demand. Also, weakness in the DX acted as a positive factor. However, decline in SPDR gold holdings along with mixed global market sentiments restricted sharp positive movement in prices. In the Indian markets, gold prices traded on a flat note today. Spot silver prices gained 0.5 percent today on the back of gain in gold prices. Also, weakness in the DX supported gains. However, negative trend in base metals complex coupled with rise in risk aversion in the markets restricted upside in prices. MCX Silver prices rose around 0.4 percent today. Base metals pack on the LME traded on a negative note today on the back of unfavourable economic data from China. Also, mixed global market sentiments exerted downside pressure on prices. However, weakness in the DX along with decline in inventories cushioned sharp downside. In the Indian markets, base metals traded lower owing to Rupee appreciation. LME Copper prices fell by 0.2 percent today taking cues from weak industrial production data from the biggest consumer, China. Also, rise in risk aversion in the markets acted as negative factors. However, weakness in the DX along with decline in inventories by 0.9 percent to 253,275 tonnes restricted sharp downside in prices of the red metal. MCX Copper prices fell by around 0.3 percent today taking cues from Rupee appreciation. NYMEX crude oil prices gained 0.2 percent today on the back of weakness in the DX. However, rise in US EIA crude oil inventories along with testing of SPR sale by the US capped sharp gains. MCX crude oil prices rose 0.3 percent today and touched a high of Rs.6533.25/bbl till 4:00 pm IST. In the evening session, we expect precious metals to trade higher on the back of rise in safe haven demand due to geopolitical tensions between Ukraine and Russia. However, decline in SPDR holdings will restrict sharp gains. Base metal and crude oil will trade on a mixed note taking cues from mixed markets sentiments. Also, weak economic data from China will exert downside pressure on prices. However, estimates of positive economic data from the US in the evening session will restrict sharp downside or even reversal in prices. punjiniveshonline
Posted on: Thu, 13 Mar 2014 11:35:31 +0000
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