11/17/2010 05:28:00 PM
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Spot Gold prices gained around 0.2% and were hovering around $1362.15/oz till 4.00 pm IST today. The yellow metal prices gained slightly in today’s session after a steep decline in the last two sessions. The Euro zone finance ministers are scheduled to meet today to discuss about Ireland’s debt scenario and are likely to announce the status of the ailing economy. This factor also kept gold prices firm in the Asian trade today. But sharp gains in the yellow metal prices were capped due to strength in the US Dollar Index (DX). The Chicago Mercantile Exchange indicated that it would raise margin requirements for gold by 5.9
percent and 11.5 percent for silver.
Copper prices declined sharply by 1.2%, on the LME, touching an intra‐day low of $8510/tonne till 4.00 pm IST today. Strong dollar exerted ownside pressure on the red metal prices today. Moreover, increasing worries about European sovereign debt, especially in Ireland, continued to weigh on market sentiment. Chinese officials announced that they are trying to bring down the speculation in agri‐ trading. Concerns over China raising interest rates also prevail which is also acting as a negative factor for the commodity prices. On the MCX, copper prices declined more than 1% and were hovering at
`387.45/kg today.
Crude oil prices declined around 0.5% on the Nymex till 4.00 pm IST today. Oil prices witnessed declines mainly taking cues from the strength in the DX today. Moreover, expectations of a buildup in oil stockpiles in the US last week also exerted downside pressure on the crude oil prices in the Asian trade today. On the MCX, oil prices declined around 1.4% and were hovering at `3800/bbl till 4.30 pm IST today. The American Petroleum Institute (API) is scheduled to release its weekly data on crude oil inventories later at night today. A Reuters poll is expecting oil inventories to increase by 0.4 million barrels.
