On Wednesday, spot gold prices rose 0.32 percent to close at $1316.8 per ounce hitting its highest in nearly four months as the dollar swooned after a report that Chinese officials had recommended slowing or halting purchases of U.S. Treasury securities.
The dollar, already under pressure versus the Japanese yen after the Bank of Japan moved to trim its long-dated government bond purchases this week, was on track to post its biggest single-day drop against the yen in seven weeks. The greenback also lost ground against a basket of major currencies.
On the MCX, gold prices rose 0.56 percent to close at Rs.29286 per 10 gms.
Spot silver prices declined by 0.1 percent to close at $16.9 per ounce in contrast to the rise in gold prices while weak dollar cushioned the prices.
On the MCX, silver prices rose 0.36 percent to close at Rs.39473 per kg.
We expect gold prices to trade higher continuing its momentum from the previous trading session while the actions by China to slowdown treasury purchases results in to weak dollar in turn higher commodity prices.
On the MCX, gold prices are expected to trade higher today, international markets are trading flat at $1317.14 per ounce.
Energy Crude Oil
WTI oil prices rose 1 percent to close at $63.6 per barrel and settled near three-year highs after U.S. government data showed a drop in crude inventories and production, even as fuel inventories rose.
U.S. crude inventories fell 4.9 million barrels last week, more than the 3.9-million decline forecast, but bigger-than-expected builds in gasoline and fuel stocks offset that drawdown.
The oil market has been buoyant for weeks, with U.S. crude futures at highs not seen since late 2014, and Brent crude less than $1 per barrel away from a similar milestone.
On the MCX, oil prices rose 0.8 percent to close at Rs.4036 a barrel.
We expect oil prices to trade higher continuing its positive momentum from the previous trading session as continuous withdrawal of oil inventory in the US and fall in production are push factors.
On the MCX, oil prices are expected to trade higher today, international markets are trading marginally lower by 0.1 percent at $63.50 a barrel.
Base metals traded higher on Wednesday as a weaker DX boosted upside in dollar denominated commodities.
MCX base metals traded higher in line with international trends.
LME Copper prices traded higher by 0.7 percent to close at $7153/t yesterday as sharp weakness in the DX after a report that officials reviewing China’s foreign-exchange holdings have recommended slowing or halting purchases of U.S. government bonds.
Also, consistent increase in net longs position in CFTC holdings for four weeks in a row indicates strong investor interest.
MCX copper prices traded higher by 0.7 percent on Wednesday to close at Rs.457.1/kg.
LME Copper prices are currently trading higher by 0.2 percent at $7168/t. Copper prices are likely to trade sideways today as global investors keenly await trade balance data from China while optimism in oil prices will provide a cushion.
MCX Copper prices will likely trade sideways today.
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