Precious base metals Crude Oil to be bearish on weak global sentiments

European markets are trading lower taking cues from weak economic data from the region and also traced contraction in the Japan economy in the fourth quarter of 2012. US index futures fell while Asian shares increased.

Spot gold prices are trading on a flat note taking cues from strength in the DX after observing weak economic data from the Euro region. However, hopes of recovery in the demand from the Asian buyers after Lunar New Year holidays cushioned fall in the yellow metal prices. Gains were also capped after observing decline in the global gold demand in 2012 as reported by the World Gold Council (WGC). In the domestic markets, depreciation in the rupee cushioned fall in the gold prices on MCX.

Spot silver prices are trading on a flat note. Mild strength in the spot gold prices are supporting an upside while strength in the DX amidst weakness in the base metals pack exerted downside pressure on the silver prices. MCX Silver prices are trading on a flat note. Depreciation in the rupee however, cushioned fall in the MCX silver prices today.

The base metals complex are trading on weak note taking cues from weak economic data from the Euro region along with contraction in the GDP of Japan. Strength in the DX also acted as a bearish factor for the base metals prices. GDP of almost all the major economies in the Euro region have witnessed a decline in the fourth quarter of the 2012 indicating that economies are still facing concerns. Rise in inventories of most of the metals on LME except nickel and lead also added to the losses in the base metals. Depreciation in the Rupee however, cushioned fall in the base metals prices on MCX.

Copper prices are trading 0.2 percent lower taking cues from unfavorable data from the Euro region and Japan. Strength in the DX also exerted downside pressure on the copper prices. Rise in the LME Copper inventories also acted as a bearish factor for the red metal prices. Depreciation in the rupee restricted fall in the copper prices on MCX.

Nymex crude oil prices are trading 0.08 percent down due to strength in the DX along with weak data from the Euro region. Signs of progress in the nuclear negotiations amongst Iran and US is also weighing in the crude oil prices. Depreciation in the Indian rupee however, cushioned fall in the crude oil prices on MCX.

In the evening session, we expect precious, base metals and crude oil prices to trade with bearish note taking cues from weak global market sentiments after observing unfavorable data from the Euro region along with strength in the DX. However, expectation of rise in the demand from the Chinese buyers after Lunar New Year holidays might cushion fall in the base metals prices today. Further, there are expectations of positive data from the US, in the later part of the evening today which might support market sentiments and cushion fall in the prices of commodities.

Courtesy: Angel Commodities

Source: http://www.commodityonline.com/futures-trading/market-report/Precious-base-metals-Crude-Oil-to-be-bearish-on-weak-global-sentiments-29449.html

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