On Wednesday, spot gold prices rose by 0.43 percent to close at $1268.1 per ounce as the dollar dipped and simmering geopolitical tensions lent support, though the metal was little changed for the month amid an increased chance of a U.S. interest rate rise next month.
The dollar edged lower versus a currency basket amid growing political tension in Washington.
On the MCX, gold prices rose by half a percent at Rs.29094 per 10 gms.
Spot silver prices declined by 0.4 percent to close at $17.3 per ounce in contrast to the rise in gold prices while dollar index weakened by 0.4 percent.
On the MCX, silver prices declined by 0.46 percent at Rs.40096 per kg.
OUTLOOK TODAY : We expect gold prices to trade higher today as geo-political tensions continue to lent support while political risk from Britain will also need to be accounted for.
On the MCX, gold prices are expected to trade higher today, international markets are trading flat at $1268.41 per ounce.
WTI oil prices declined by 2.7 percent on Wednesday to close at $48.3 per barrel to a three-week low on Wednesday as an increase in Libyan output helped boost monthly OPEC crude production for the first time this year.
For the month of May, Brent fell almost 3 percent, its fifth straight monthly loss. WTI had its third straight monthly decline, ending May down more than 2 percent.
Output from the Organization of the Petroleum Exporting Countries (OPEC) rose in May, the first monthly increase this year, a Reuters survey found. Higher supply from Nigeria and Libya, OPEC members exempt from a production-cutting deal, offset improved compliance by others.
EIA Inventory forecast
The U.S. Department of Energy’s Energy Information Administration (EIA) estimated, on average, that crude stocks fell 2.5 million barrels in the week ended May 26. Distillate inventories , which include heating oil and diesel fuel, were also seen falling 800,000 barrels.
CRUDE OIL OUTLOOK TODAY :
We expect oil prices to trade lower as global inventories and the US inventories remain high while the summer driving season in the US will see how the incremental demand chips in.
On the MCX, oil prices are expected to trade lower today, international markets are trading higher by 0.9 percent at $48.75 per barrel.