5:55 PM
Nifty Tips
Precious Metals
Gold recovered from session low of $1315.60/oz to current levels of $1320/oz as the dollar index left some grounds. Gold is taking a correction after reaching record price levels in the recent past. However, the magnitude of decline in gold prices is not equal to the rise in the dollar but gold is rather finding an excuse to
correct. Silver also follows gold and trades lower at $23/oz. MCX gold and silver futures also stayed volatile and fluctuated between gains and losses, tracking international futures. European equities failed to recover despite IFO economic sentiments data came positive. Gold and silver mainly rose on currency uncertainties. If ongoing G-20 meeting winds up with proper solution for currency wars, it could be negative for bullion prices. Sentiments remain negative for precious metals and thus, investors will continue to sell precious metal as and when prices see a slight pullback upwards.
Base Metals
Base metal prices are trading with gains of anywhere between one to two percent. Reports of closure of Zinc smelters in China along with supportive equity markets are sending prices higher. Most of the Asian equity markets ended higher. European equity markets though opened on the lower side have pared most of there gains as IFO expectation of survey from Germany came in better than expected. In the evening, there are no major data releases due from US. Dollar index after trading lower for most part of the day is currently trading modestly higher as investors await the outcome of the G-20 meeting, which is underway and is expected to discuss on the currency intervention issues. Overall, the bias continues to remain on the positive side; today being last trading day of the week, a small bout of profit booking cannot be ruled out .
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