7:14 PM
Nifty Tips
Precious Metals-
Stocks, U.S. index futures and commodity futures are declining ahead of key reports that may show America’s unemployment rate climbed. Gold futures traded lower as a halt in the dollar’s declines and the AngloGold announcement which prompted some investors to sell the metal. AngloGold Ashanti Ltd, the world’s third- largest gold producer, eliminated so-called forward-sales agreements which may result in demand component to be absent in future. Silver followed suit and fell more than gold. MCX gold and silver futures were also thrashed out on negative global cues.Markets are expected to remain highly volatile with some gains expected in bullion futures. Data expectations suggest that U.S. unemployment rate may rise to 9.7% in September, the second straight monthly rise. Non-farm payrolls are expected to have dropped 5,000 in September. Negative economic data may help gold prices recover on demand for safe haven asset. However, actual data will provide further direction.
Base Metals
Base metals prices are trading modestly lower ahead of the crucial non-farm payroll data due to be released in the evening. Most of the Asian equity markets ended lower with the exception of Shanghai which closed higher with gains of more than 3 percent as the markets opened after a week long holiday. European equities also continue to remain modestly lower. The crucial data to watch will be the non-farm payrolls data from US. The expectation is that there will be job cuts and thereby will push the unemployment rate up by 1 bps to 9.7 percent. Job market in US continues to remain weak despite more than a year into recovery. Overall, we at KCTL expect, base metals to trade lower and the actual data will provide further direction.
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