In a report released by Indian commodities firm, Angel Commodities, Gold and Silver are expected to trade with a positive bias today, taking cues from weakness in the US dollar coupled with upbeat sentiments in the global markets.

European markets traded higher today, ahead of US manufacturing data which is expected to come on the positive side. ISM Manufacturing Purchasing Managers’ Index (PMI) in the US is expected to increase up to 53.3-mark in December from the previous level of 52.7 in November.

Additionally, improved manufacturing data from China, India and the UK also led to rise in investors appetite for risk in worldwide markets. The manufacturing data is having a calming effect on investors despite concerns over a potential european debt crisis.

The spot gold price rose sharply by more than 1.5 percent today on the back of weakness in the US dollar. The yellow metal touched an intraday high $1592/oz and was trading at $1589/oz till 4.30 pm IST.

MCX Gold February contract gained around 0.8 percent and hit a high of Rs27,637/10 gms till 4.30 pm IST today. However, a stronger Rupee resisted further gains on the domestic bourses. Taking cues from rise in gold prices coupled with a weaker dollar, spot silver rose sharply by more than 3 percent today. The white metal tested an intra-day high of $28.72/oz and was trading at $28.67/oz till 4.30 pm IST. On the MCX, silver March contract gained around 1.6 percent and appreciation in the Indian Rupee capped further gains on the domestic platform today.

The base metals complex traded on a mixed note today with nickel and lead trading lower while copper, zinc and aluminium trading in the green. In case of nickel and lead, sharp decline was cushioned on the back of weakness in the US dollar.

Copper prices rose sharply by almost 1.5 percent on the LME and around 0.7 percent on the MCX. Appreciation in the Indian currency capped sharp gains on the domestic bourses today.

Nymex crude oil prices gained by 2.1 percent today taking cues from the supply concerns from Iran and favorable manufacturing data from China and India. A weaker dollar and upbeat market sentiments also acted as a positive factor for the commodity.

Prices were trading around $100.92/bbl after touching an intraday high of $101.10/bbl till 4:30pm today. On the MCX, prices increased by 1 percent and were hovering around Rs5378/bbl after touching an intra-day high of Rs5392/bbl till 4:30pm today.

Outlook

Gold and silver are expected to trade with a positive bias today, taking cues from weakness in the US dollar coupled with upbeat sentiments in the global markets. Silver being an industrial metal will also take cues from upside in base metals.

We expect base metals and crude oil to trade higher today on account of rise in risk appetite in the global markets coupled with a weaker dollar.

In case of crude oil, supply concerns from Iran will also act as a supportive factor for oil prices.

View the a copy of the Angel Commodities report.

Source: MoneyControl.com