Posted by : Niti Mathur
Spot gold prices declined 0.8 percent today on the back of fall in SPDR Gold holdings. However, upbeat global market sentiments and weakness in the DX prevented sharp fall. In the Indian markets, gold declined by around 2 percent due to Rupee appreciation touching an intraday low of Rs.29410/10 gems till 4:30 pm IST. Spot silver prices declined by 1.7 percent, taking cues from decline in gold. However, weakness in the DX and upbeat global market sentiments cushioned sharp downfall. On the MCX, silver declined around 2.7 percent on account of Rupee appreciation and hovered around Rs.48866/kg till 4:30pm IST.
The base metals pack traded on a mixed note today as Lawrence Summers who was expected to be aggressive with QE taper withdrew from Fed candidature, easing market concerns and mixed economic data from the Euro zone. Weakness in the DX and upbeat global market sentiments added to the upside in prices on the LME. On the MCX, base meals pack declined due to Rupee appreciation. LME Copper prices gained 0.1 percent on the withdrawal of Lawrence Summers from Fed candidature and weakness in the DX. Decline in inventories by 0.5 percent to 574,675 tonnes acted as a positive factor. However, concerns regarding QE taper before the FOMC meet this week prevented sharp gains. The near month copper contract declined by 1.6 percent due to Rupee appreciation.
Nymex crude oil prices declined by 1.3 percent as the concerns regarding the US-Syria military war has faded owing to proposal by the US to Syrian president Bashar al-Assad to submit an inventory of toxic weapons in a week. Weakness in the DX prevented sharp decline in prices. MCX crude oil prices declined by around 3 percent due to Rupee appreciation.