Precious base metals Crude Oil to be bearish on Eurozone concerns

European markets recovered from the earlier losses taking cues from firmness in the insurance and utilities companies. However, worries created after ECB President Mario Draghi said that further strength in the Euro might cause policy makers to cut interest rates and might restrict growth in the nation. US futures are trading on a firm note while most of the Asian markets are closed today.

Spot gold prices are trading 0.4 percent lower as investors follow a cautious approach before the European finance ministers meeting today to decide on the aid to Cyprus and Greece. Strength in the DX also acted as bearish factor for the gold prices. In the Indian markets, depreciation in the Indian Rupee however cushioned fall in the spot gold prices.

Taking cues from decline in base metals and spot gold prices, spot silver prices are also trading on a bearish note. Strength in the DX also added to the losses in the silver prices. MCX Silver prices are also trading with a negative bias tracking weakness in the spot silver. Depreciation in the rupee however, restricted fall in the prices today.

The base metals complex are trading with a bearish note owing to lower participation due to ongoing Lunar New Year festival in China, the largest consumer of the metal. However, decline in the LME inventories in most of the metals cushioned fall in the prices of industrial metals.

Depreciation in the Rupee are restricting fall in the prices of base metals on MCX. Copper prices are trading on a flat note with mild firmness. Ongoing Lunar new year festrival in China along with strength in the DX are restricting gains in the copper prices. However, positive data from China and US in the last week is expected to support an upside in the red metal prices. Investors are also adopting a cautious approach ahead of European finance Minsiters meeting today to decide aid to Greece and Cyprus. In the domestic markets, prices are trading higher taking cues from international copper prices along with depreciation in the rupee.

Nymex crude oil prices are trading 0.2 percent lower today. Strength in the DX along with political worries in the Euro region are expected to reduce the demand for the fuel. On the domestic bourses, prices are trading lower taking cues from weakness in the international crude prices. However, depreciation in the Indian Rupee cushioned fall in the crude oil prices on MCX.

In the evening session, we expect precious, base metals and crude oil prices to trade lower as investors are awaiting decision from the European Finance Ministers meeting today over the aid to Greece and Cyprus along with strength in the DX.

Worries amongst the market participants over the political turmoil in the Spain and Italy might also weigh on the prices. Week long holiday in China on the occasion of Lunar New year festival might also cause subdued trading.

Courtesy: Angel Commodities

Source: http://www.commodityonline.com/futures-trading/market-report/Precious-base-metals-Crude-Oil-to-be-bearish-on-Eurozone-concerns-29433.html

michael kidd gilchrist national championship calipari national archives brock lesnar kentucky jayhawks