Commodities may trade mixed, markets awaits US jobs data

Mumbai-India (Mar 6)   European equities are trading higher today ahead of the European Central Bank (ECB) interest rate decision. Asian markets ended on a positive note and the US stock futures are trading in the green.

UK’s Halifax HPI jumped by 2.4 percent in February as against a rise of 1.2 percent in January. European Retail PMI fell to 48.5-mark in February from 50.5 levels in January.

Indian Rupee appreciated by around 0.8 percent today on the back of decline in Current Account deficit in the quarter ended December, which triggered dollar selling.

Spot gold prices are trading lower by around 0.1 percent today on the back of strength in the DX. However, upbeat market sentiments along with rising trend in SPDR gold holdings restricted sharp negative movement in prices. In the Indian markets, gold prices slumped by 0.6 percent owing to Rupee appreciation and touched a low of Rs.29925/10 gms till 4:00pm IST.

Taking cues from negative movement in gold and base metals prices, Spot silver prices fell around 0.1 percent today. Also, strength in the DX acted as a negative factor. However, rise in risk appetite in the markets cushioned sharp fall. MCX Silver prices gained around 0.2 percent today despite Rupee appreciation.

Base metals pack on the LME except Nickel traded on a negative note today as the biggest consumer; China stated that it will allow the country’s $21 trillion debt to inflate as it does not want to cut their annual economic-growth target of 7.5 percent. Also, mixed trend in LME inventories along with strength in the DX exerted downside pressure. However, upbeat market sentiments restricted sharp fall. In the Indian markets, base metals traded lower today on account of Rupee appreciation.

LME Copper prices declined around 0.2 percent today taking cues from statement of Chinese leaders to let debt inflate as they don’t want to compromise on growth. Also, strength in the DX acted as a negative factor. However, upbeat market sentiments coupled with decline in inventories by 0.5 percent restricted sharp downside in prices of the red metal. MCX Copper prices declined around 0.5 percent today due to Rupee appreciation.

Nymex crude oil prices traded lower by around 0.1 percent today on the back of gain in US EIA inventories along with strength in the DX. MCX crude oil prices fell by around 1 percent owing to Rupee appreciation and touched a low of Rs.6191/bbl till 4:00pm IST.

In the evening session, we expect precious metals, base metals and crude oil prices to trade on a mixed note taking cues from upbeat global market sentiments wills support an upside in prices.

Further, expectations of favourable jobless claims data from the US in the evening session will act as a positive factor.

While on the other hand, strength in the DX will cap sharp gains or even reversal in prices.


Source: Commodity Online