On Tuesday, spot gold prices rose by 0.65 percent to close at $1242 per ounce as prices hit a more than two-week high supported by expectations of stronger demand from the physical market and as the dollar fell on fading prospects of an imminent increase in U.S. interest rates.
Data from consultancy GFMS shows India’s gold imports climbed to an estimated 75 tonnes in June from 22.7 tonnes a year earlier. For the first half of the year imports rose to 514 tonnes, up 161 percent year on year.
On the MCX, gold prices rose by 0.52 percent to close at Rs.28478 per 10 gms.
Spot silver prices rose by 1.1 percent on Tuesday to close at $16.3 per ounce in line with rise in gold prices while weaker dollar also acted as a positive factor.
On the MCX, silver prices rose by 0.76 percent to close at Rs.37695 per kg.
OUTLOOK SUMMARY : We expect gold prices to trade higher today continuing its positive momentum from the previous trading session as weakness in the dollar index and stronger physical demand are push factors.
On the MCX, gold prices are expected to trade higher today, international markets are trading lower by 0.09 percent at Rs.1241.2 per ounce.
WTI oil prices rose by 0.8 percent to close at $46.4 per barrel as Saudi exports fell and solid demand soaked up some of what is seen as an oversupplied market, but Ecuador’s decision to opt out of an OPEC-led supply reduction pact complicated the outlook.
Saudi Arabia’s crude oil exports in May fell to 6.924 million barrels per day (bpd) from 7.006 million bpd in April, official data showed on Tuesday. Meanwhile in a sign of strong demand, data on Monday showed refineries in China increased crude throughput in June to the second highest on record.
On the MCX, oil prices rose by 0.2 percent to close at Rs.2973 per barrel.
Crude oil prices reached fresh highs at $46.90(3017) yesterday but was unable to hold on to resistance area which retested lower slope line at $46.(2963) I have analyzed the crude oil 4hour chart which has taken the formation of “Rising Wedge Pattern”. Prices are currently holding support slope line which has taken consolidation.
The current scenario depicts, if the crude oil prices break below wedge support then the entire direction will be turn to negative momentum and reach to $45- 44. (2900-2850) Alternatively, if it does not break below, then a strong support can be expected to run towards upside resistance line at $47.50-$49(3030-3100) Traders are advised to maintain stop loss at $45.75(2950) as the prices will be under selling pressure anytime due to the oversupply of glut.
CRUDE OIL OUTLOOK : We expect oil prices to trade lower today as oil inventories remains high while increasing supplies from the Libya and Nigeria are also creating negative sentiments.
On the MCX, oil prices are expected to trade lower today; international markets are trading lower by 0.15 percent to close at $46.32 per barrel.