Gold to remain lower on Greece, strong dollar
Mumbai-India (Feb 20) European markets are trading mostly lower as Greece uncertainty bothers investors. Asian markets ended on a positive note.
Today, spot gold prices trading marginally lower by 0.4 percent to $1202/oz as investors eyed talks over Greek debt, but the metal was headed for its fourth straight weekly dip as a last minute deal was expected to break the impasse over the Mediterranean country's bailout programme. The metal has lost 1.8 percent for the week so far, also dipping below the key $1,200 level briefly on Wednesday. Gold had initially seen some safe-haven bids as the uncertainty over the Greek crisis dragged on, but market concerns eased on hopes that a deal would be patched together. On the MCX, gold prices are trading lower by 0.35 percent at Rs.26165/10 gms.
Spot silver prices are trading marginally flat at $16.35/oz. Strengthening dollar and weak gold prices are acting as a negative factors. On the MCX, silver prices are trading lower by 0.19 percent at Rs.36350/kg.
London copper edged lower on Friday, after a U.S. labour report boosted the dollar, with prices set to close the week little changed amid the Lunar New Year holiday in top consumer China. Three-month copper on the London Metal Exchange slipped 0.9 percent to $5,698 a tonne 4PM IST GMT after closing almost flat in the previous session. A rally from 5-1/2-year lows touched in January has run out of steam with top user China away from the market. China's stock, bond, foreign exchange and commodity futures markets are closed from Feb. 18 to Feb. 24 for the Lunar New Year holiday. Markets will resume trade on Feb. 25. MCX copper prices are trading lower by around 0.78 percent at Rs.356.65/kg.
Oil prices are trading lower today by 0.18 percent at $51.07/bbl oversupply, supported by record-high U.S. crude stocks, weighed on the market. U.S. crude inventories rose 7.7 million barrels to 425.6 million last week, rising for a sixth straight week to record highs, data from the Energy Information Administration (EIA) showed on Thursday. On the MCX, oil prices are trading lower by 1.8 percent at Rs.3184/bbl.
Gold prices are expected to trade lower as Greece will sail through troubled waters by on its bailout plan while strengthening dollar will also act as a negative factor for prices.
Oil prices will trade lower today on rising crude inventories in the US coupled with bleak demand scenario from China and the Euro-zone.
We expect LME Copper prices to trade lower as slowdown in China coupled with Lunar new holidays has kept trading volumes thin exerting downside pressure.