Spot Silver Hits Intraday High Of $27.10, Nymex Crude Declines

European equities are trading on a positive note due to favourable data from the economy. Asian markets although closed on the bearish note and US stock Futures are trading with a positive bias ahead of favourable economic data from the economy in the evening. German Ifo Business Climate decline to 103.3 Mark in the month of July from previous rise of 105.3 level in June. While, UK’s preliminary Gross Domestic Product declined to 0.7 percent in Q2 as compared to 0.3 percent in Q1.

Spot gold prices increased by 0.5 percent today on account of mixed global market sentiments along with weakness in the dollar index (DX). The gold prices touched an intra-day high of $1589.86/oz and hovered around $1588.40/oz till 4:30pm IST today. On the MCX, Gold August contract gained by 0.5 percent after touching a high of Rs.29,729/10 gm and were trading around Rs.29,707/10 gms till 4:30 p.m today. In the Indian markets appreciation in the Indian rupee capped sharp gains.

Taking cues from firmness in gold and base metals prices, Spot silver prices gained by around 1 percent till 4:30 p.m today. Additionally, weakness in the DX also acted as a supportive factor for upside in the silver prices. In the Indian markets sharp gains were capped on the back of appreciation in the Indian rupee. The white metal touched an intraday high of $27.10/oz and hovered around $27.03/oz till 4:30p.m today. In the domestic markets prices improved by 0.27 percent and was trading around Rs.52,973/kg after touching a high of Rs.53,050/kg till 4:30 p.m in today’s trade.

The base metals pack traded on mixed note eyeing weakness in the DX along with decline in LME inventories. Copper, the leader of the base metals group increased 0.3 percent on the LME and hovered around $7,414/tonne today till 4:30pm IST. On the domestic front, prices improved by less than 1 percent and were trading around Rs.419.25/kg after touching an intraday high of Rs.421.20/kg today.

However, appreciation in the Indian rupee restricted sharp rise in prices on the MCX. Nymex crude oil prices declined around 0.03 percent today on the back of rising concerns of eurozone debt concerns will curb demand for fuel. However, weakness in the DX along with expected decline in the crude oil inventories cushioned sharp fall in the prices.

In the evening session, we expect precious metals, base metals and crude oil prices to trade with sideways with upward bias on the back of rise in the risk appetite in the global markets which will lead decline in demand for low yielding currency like DX and support upside in the commodities. Additionally, expected decline in the crude oil inventories might add to the gains of the commodity. However, if crude oil inventories come on the higher side prices might see a reversal on the downside.