7:05 PM
Nifty Tips
Precious Metals
Gold marched higher to $1250/oz levels as the dollar remained lower against the euro on account of stronger European equities and better than expected German factory orders data. There are speculations that after Japan’s rate cut and bond purchase plans, other governments may also do quantitative easing which will
weaken currencies and boost demand for precious metals as an alternative investment. Silver extended gains to 30-year high and now trades at $22.90/oz. MCX gold and silver futures also traded higher on account of strong global cues.
Day ahead, the dollar index may trim its losses ahead of reports which may show a rise in ADP employment numbers in the U.S. Gold may see some momentary dips with overall trend remaining upward. ADP employment data could give some insights on Friday’s non-farm payrolls data. Markets will be curious to listen
to ADP reports.
Base Metals
Base metal prices which were trading higher with gains of more than a percent are giving up some of their gains as the dollar rebounds from lows; however the bias continues to remain on the positive side. Most of the Asian equity markets closed higher with gains of close to a percent. European equity market continues to trade
higher after data indicated euro-zone second quarter GDP growth remained unchanged. However the factory orders from Germany came in better than expected thereby providing support to prices. In the evening, there are no major data releases from US except for ADP employment change, which may give
indication as to how the non-farm payrolls data might be which is due to be released on Friday. Overall, we expect prices the positive trend to continue and thereby advice buying at lower levels.
Posted in:
0 comments:
Post a Comment