Gold, Silver may trade with positive bias:Angel Commodities

Angel Commodities has come out with its report on international commodities. According to the research firm Gold and Silver are expected to trade with a positive bias today as weakness in the US dollar will help support prices in the international markets.

• European stocks up on Italy’s step to control debt crisis.
• Silver trades higher today on account of a weaker dollar.
• Crude up due to supply worries from the Middle East region.
• The Indian Rupee depreciates around 0.4 pct till 4.45 pm IST.

European stocks are trading on a positive note today as Italian Prime Minister Mario Monti declared austerity and growth measures in order to tackle with the region’s debt crisis. This led to rise in risk appetite in the markets today.

Spot gold prices declined around 0.2 percent today mainly on account of rise in risk appetite in the markets. However, a weaker dollar cushioned sharp decline in the international markets. Prices touched a low of $1740/oz and were trading around the same levels till 4.45 pm IST today. On the MCX, Gold February contract rose 0.2 percent and was hovering around Rs 28,931 /10 gms till 4.45 pm IST.

Silver prices witnessed gains of around 0.4 percent today, mainly taking cues from weakness in the US dollar index. The white metal hit an intra-day high of $32.98/oz and was trading at the level of $32.66/oz till 4.45 pm IST. MCX Silver March contract increased almost 0.7 percent and was hovering around Rs 55,449/kg till 4.45 pm IST today.

The base metals pack traded lower on the LME today, with nickel being an exception. However, weakness in the US dollar resisted further decline on the international bourses. Aluminium is the top loser of the day, as the metal declined more than 1 percent on the LME and around 0.6 percent on the MCX till 4.45 pm IST today.

Nymex crude oil gained around 0.7 percent today taking cues from supply concerns from the Middle East. Rising expectations that Euro Zone will take steps in order to fight debt crisis led to rise in risk appetite in the global markets, which also supported prices. Additionally, a weaker dollar also acted as a positive factor. Oil prices are trading around $101.69/bbl after touching an intraday high of $101.90/bbl till 4.45pm. On the MCX, prices increased by 1.4 percent due to Rupee depreciation and were hovering around Rs.5220/bbl till 4:45pm today.

Outlook
Gold and silver are expected to trade with a positive bias today as weakness in the US dollar will help support prices in the international markets. Rising expectations that Euro Zone will take measures in order to deal with the ongoing crisis is expected to lead to risk appetite in the global markets. This coupled with dollar weakness will support upside in base metals today. We expect crude oil prices to trade higher on account of supply concerns from the Middle East coupled a weaker dollar today. – MoneyControl

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Posted by Silver Guru on Dec 5 2011. Filed under Silver Analysis, Silver prices. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry