On Wednesday, spot gold prices declined marginally by 0.2 percent to close at $1266.2 per ounce although the dollar fell to a 15-month low and U.S. data showed fewer-than-expected new jobs in July, bringing into question chances of the Federal Reserve raising interest rates in the coming months.
Investors were looking ahead to the more comprehensive U.S. nonfarm payrolls report on Friday for a clearer indication of the Fed's intentions.
Demand for physical gold has been weak, with holdings in the largest gold-backed exchange-traded-fund, the SPDR Gold Trust, falling more than 7 percent in July, the biggest monthly outflow since April 2013. On the MCX, gold prices declined by 0.63 percent to close at Rs.25589 per barrel.
Spot silver prices declined by 0.9 percent to close at $16.6 per ounce in line with decline in gold prices.
On the MCX, silver prices declined by 1.03 percent to close at Rs.38116 per kg.
We expect gold prices to trade lower today on profit booking while physical demand and low investment demand are factors pushing gold prices down.
On the MCX, gold prices are expected to trade lower today; international markets are trading lower by 0.27 percent to close at $1262 per ounce.
WTI oil prices rose by 0.9 percent on Wednesday to close at $49.6 per barrel as surging U.S. fuel demand and strong refinery runs offset data from the Energy Department that showed crude inventories did not fall as much as expected last week.
Crude inventories in the United States fell by 1.5 million barrels in the week to July 28 according to the EIA report released on Wednesday. However, the report also showed estimated weekly gasoline demand at a record high 9.842 million barrels.
On the MCX, oil prices rose by 0.4 percent to close at Rs.3147 per barrel.
We expect oil prices to trade higher continuing its recent positive momentum while drawdown in oil inventories in the US and strong refinery runs are expected to create a stir in the counter.
On the MCX, oil prices are expected to trade higher today, although international markets are trading lower by 0.4 percent at $49.41 per barrel.
LME base metals higher as expansion in Chinese manufacturing activity in July’17 boosted demand prospects while weak dollar is supporting prices.
MCX base metals traded higher in line with international markets.
LME Copper prices marginally higher by 0.1 percent on Wednesday to close at $6352 per tonne as prices retreated on lower global risk appetite following tensions between the US and North Korea.
Earlier, prices surged to two year highs of $6430/t as Chinese manufacturing activity witnessed expansion for the twelfth month in a row in July’17 although number was softer than expected. China's manufacturing PMI at 51.4 in July’17 was slightly lower than 51.7 in June’17.
MCX copper prices traded lower by 0.7 percent to close at Rs.405.7 per kg on Wednesday.
LME Copper prices are currently trading higher by 02.4 percent at $6367.5/t. We expect Copper prices to trade lower today as latest weak data from US weighed on global demand prospects although favourable Chinese manufacturing numbers and increase in CFTC net longs in Copper will be supportive.
We expect MCX copper prices to trade lower today.
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