6/06/2011 06:11:00 PM
Your Advisor
Spot gold prices gained around 0.3 percent mainly due to weak sentiments in the global equity markets which made gold look attractive as a safe-haven investment. But sharp gains were capped due to dollar strength. Gold touched an intra-day high of $1547/oz and was trading at $1545/oz till 4.30 pm IST. On the MCX, the yellow metal gained slightly by 0.1 percent as further gains were capped on account of Rupee appreciation.
The base metals complex traded higher on the LME today, mainly supported by improving Chinese demand expectations. Copper prices traded higher mainly on the back of supply disruptions on account of strike at the EI Teniente mine in Chile, which is the world’s largest producer of the metal. The red metal rose 0.4percent and touched an intra-day high of $9202/tonne today.
We expect base metals to trade higher today mainly on the back of improved demand expectations from China, which is the world’s largest metal consumer. Strike at a copper mine in Chile has raised supply-side concerns and is also supporting an upside in prices.
Crude oil prices are expected to trade lower on account of expected rise in supply target by OPEC, dollar strength and poor sentiments in the global equity markets.Gold prices are expected to trade with a positive bias today mainly on account of weak sentiments in the global equity markets which will increase safe-haven demand for gold. But sharp gains will be capped due to dollar strength.
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