6/21/2011 05:38:00 PM
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MCX Gold Updates
Spot Gold prices closed in the positive territory on Monday but sharp gains in the yellow metal were capped on account of dollar strength. Spot Gold touched its two-week high of $1545/oz yesterday, much below its lifetime high of $1575/oz it touched in early May. Safe-haven demand continues to be the supportive factor for bullion as concerns over Greece persist. Factors that have been supportive for rise in gold prices include – 1) debt concerns in the Euro Zone, 2) rising inflation in China and 3) worries over slowdown in US economic recovery. There are fears that Greece could end up defaulting on its debt and this will provide upside to gold prices.
Gold prices are expected to trade higher on account of Greece concerns. There is no clarity over the decision over the Greece bailout and this coupled with worries over US economy will be supportive for the yellow metal. But sharp gains in gold could be capped on account of dollar strength. Gains in silver prices are expected to be capped on account of dollar strength and if base metals come under pressure due to Greece concerns.
Crude Oil Updates
Nymex Crude oil prices gained on Monday after falling to a four-month low below $92/bbl in the last week. But sharp gains were capped due to mixed global market sentiments coupled with strength in the US dollar in yersterday’s trading session. It touched an intra-day high of $93.49/bbl and closed at $93.21/bbl. MCX crude oil July contract rose almost 1 percent mainly on account of Rupee ep[recitation and touched an intra-day high of `4194/bbl.
Crude oil is expected to trade with sideways bias mainly taking mixed cues from dollar strength and mixed global market sentiments.
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