Precious, Base Metals may trade negative, Crude Oil bullish

Frankfurt-Germany (Dec 3)  European equities are trading lower today on the back of concerns of QE taper by the Federal Reserve. Asian markets ended on a mixed note and the US stock futures are trading in the red.

Spanish Unemployment Change declined by 2,500 in November as against a gain of 87,000 in October. UK’s Construction PMI rose to 62.6-mark in November from 59.4 level in October.


Spot gold prices fell around 0.1 percent today taking cues from weak global market sentiments. Also, declining trend in SPDR Gold holdings acted as negative factor. However, weakness in the DX cushioned sharp fall. In the Indian markets, gold prices declined around 0.1 percent but Rupee depreciation restricted sharp fall.


Spot silver prices declined around 0.1 percent today taking cues from fall in gold prices and base metals complex. Additionally, weak global market sentiments along with declining trend in iShares trust will act as a negative factor. However, weakness in the DX restricted sharp fall in prices of the red metal. Also, positive demand outlook for silver in the biggest user, India, on the back of 40 percent jump in imports in October prevented further fall. MCX Silver prices slumped by around 0.7 percent despite Rupee depreciation touching an intra-day low of Rs.42700/kg till 4:15pm IST.


Base metals pack traded on a negative note today taking cues from weak global market sentiments. Also, mixed inventories data exerted downside pressure on base metals. However, positive construction PMI data from UK coupled with weakness in the DX cushioned sharp fall. In the Indian markets, base metals traded on a negative note despite Rupee depreciation.


LME Copper prices traded lower by around 0.3 percent today on the back of weak market sentiments. However, decline in inventories by 0.4 percent to 418,750 tonnes coupled with favourable economic data from UK restricted sharp decline in prices of the red metal. Also weakness in the DX prevented further fall. MCX Copper prices declined by 0.3 percent today but Rupee depreciation prevented sharp negative movement.


Nymex crude oil prices traded higher by 0.3 percent today on the back of expectations of decline in US crude inventories. Also, weakness in the DX supported gains. In the Indian markets, crude prices rose by 0.6 percent due to Rupee depreciation touching a high of Rs.5895/bbl till 4:15pm IST.


The American Petroleum Institute (API) is scheduled to release its weekly inventories today and US crude oil inventories are expected to decline by 0.6 million barrels for the week ending on 29th Nov’13.


In the evening session, we expect precious metals and base metals to trade on a negative note on the back of weak market sentiments. Further, concerns regarding QE tapering by the Federal Reserve will add downside pressure on the prices. However, weakness in the DX will cushion sharp downside in the prices.