* Euro zone finance ministers failed on agreement over Greece.
* US retail sales data awaited in the evening session.
* LME Copper stocks jumped by 1.5 percent on Wednesday.
European markets are trading higher today after euro zone finance ministers failed to hammer out an agreement on how to deal with Greece’s finances. Asian markets ended on a positive note and the US stock futures are trading in the green. Spot gold prices edged higher on Thursday, as confusion over Greece’s debt negotiations with its European lenders dominated markets, drumming up some safe-haven bids for the metal.
Spot gold fell to $1,216.45 per ounce, its lowest since Jan. 9, before recovering to trade up 0.5 percent at $1,225 by 4 PM IST. Financial markets are under pressure as Greek Finance Minister Yanis Varoufakis played down a failure to reach a common position with the rest of the euro zone and said he believed a “healing deal” on Greece’s finances could be reached on Monday. On the MCX, gold prices are trading marginally flat at Rs.26651/10 gms.
Spot silver prices are trading higher by around 0.9 percent at $16.05/oz. Weak dollar and strength in copper prices is acting as a positive factor for prices. On the MCX, silver prices are trading higher by 0.2 percent at Rs.37547/kg.
LME Copper prices jumped by 1.4 percent as weaker-thanexpected Chinese inflation data ahead of the Lunar New Year had sparked speculation about the measures China may take to support its economy. Also, weakness in the DX acted as a positive factor. However, gain in LME stocks prevented further upside in prices. MCX copper prices are trading higher by around 1 percent at Rs.354.70/kg.
Brent oil futures rose to $56 a barrel on Thursday, as a weakened dollar and industry spending cuts offset worries of a supply glut after U.S. crude inventories increased for a fifth consecutive week. French oil major Total announced on Thursday that it would increase cuts to operational costs to $1.2 billion this year while spending 30 percent less on exploration, to cope with weaker oil prices. On the MCX, oil prices are trading higher by 2.2 percent at Rs.3124/bbl.
Gold prices will higher as the Greece uncertainty is raising the safe haven appeal of the yellow metal acting as positive factor. Besides, weakening dollar will also push gold prices higher.
Oil prices will trade higher as spending cuts by exploration companies will be a boosting factor, although rise in crude inventories in the US is bothering the oil markets.
We expect Copper prices to trade higher today owing to expectations of additional stimulus from China along with estimates of favorable retail sales data from the US. However, Greece’s new leftist government and its international creditors failed to agree on a way forward on the country’s unpopular bailout and will try again on Monday, with time running out for a financing deal will restrict upside.