US Crude Oil, Gold Up Marginally, Mixed Trend In Base Metals

European equities are trading on a positive note on account of speculation that Federal Reserve Chairman Bernanke might hint stimulus measures to boost the world's largest economy. Indian markets ended lower and US stock futures are trading in the green.

Spot gold prices increased around 0.3 percent today on the back of rise in risk appetite in the global markets. Additionally, weakness in the US Dollar Index (DX) also supported upside in the gold prices. The yellow metal touched an intra-day high of $1,599/oz and hovered around $1594.09/oz today till 4:30pm IST. On the MCX, Gold August contract traded on a firm note and was trading around Rs.29,355/10gms today.

Taking cues from strength in the gold prices amidst speculation of possible stimulus measures by the Federal Reserve led Silver prices to trade on positive note up 0.7 percent today. Further, weakness in the DX is also supportive for the white metal prices. Silver prices touched intra-day high of $27.62/oz and are trading around $27.44/oz today. In the Indian markets prices increased by 0.5 percent and hovered around Rs.52,995 /kg and touched an intra-day high of Rs.52,413/kg till 4:30pm IST today.

The base metals pack traded on a mixed note today on the back of upbeat global market sentiments along with weakness in the DX. Copper, the leader of the base metals traded rangebound and are currently 0.05 percent down today on account of rise in the LME inventories. However, weakness in the DX cushioned sharp fall in the prices.

The red metal touched an intra-day low of $7,670/tonne and hovered around $7,692/tonne today till 4:30pm IST. In the domestic markets, prices improved around 0.3 percent and were trading around Rs.426.5 /kg today. Appreciation in the Indian rupee restricted sharp rise in the prices on the MCX.

Nymex crude oil prices increased around 0.3 percent today on account of concerns that tensions with Iran will worsen and expectation of lower US crude oil supplies along with speculation that the US Federal Reserve might hint at stimulus measures to the augment the economy. Additionally, a weaker DX also supported upside in the crude oil prices. On the domestic bourses, prices traded on a positive note up 1.3 percent and are trading around Rs.4,879/bbl till 4:30 p.m today.

U.S. commercial crude oil stockpiles were projected down for last week due to higher refinery utilization, and increases in petroleum products according to Reuter’s poll.

In the evening session, we expect precious metals, base metals and crude oil prices to trade with a positive note on the back of rise in risk appetite ahead of Federal Reserve testimony which might hint stimulus measures to boost the economic growth along with weakness in the DX.