Silver
Taking cues from fall in gold prices along with mixed performance in the base metals group,
Spot silver prices fell 1.5 percent yesterday. Further, strength in the
DX added downside pressure on the prices. The white metal touched an
intra-day low of $21.23/oz and closed at $21.30/oz in yesterday’s trade.
On the domestic front, prices fell 0.2 percent and closed at
Rs.43,954/kg after touching an intra-day low of Rs.43,675/kg on
Wednesday.
Gold
Spot gold prices declined 1.3 percent in yesterday’s trading session on the back of rise

in risk aversion in the global markets. Further, strength in the DX
exerted downside pressure on the prices. The yellow metal touched an
intra-day low of $1348.74/oz and closed at $1350.70/oz in yesterday’s
trading session.
SPDR gold holding slipped below 1000 tonnes yesterday and this eroded
more than $29 billion from the funds. Over the year, holdings have
slipped by 26 percent to 999.56 tonnes marking lowest since February
2009.
In the Indian markets, prices ended on a positive note, increasing
0.2 percent. The commodity closed at Rs.28011/10 gms after touching an
intra-day high of Rs. 28066/10 gms on Wednesday.
Outlook
In today’s trade, we expect precious metals to trade lower on the
back of weak global markets. Further, sharp upside in the DX coupled
with fall in the SPDR holdings below the 1000 tonnes will exert downside
pressure on the prices. Additionally, statement from Fed to reduce its
bond buying program by end of this year as US economy is growing at a
stronger pace will act as a negative factor. Depreciation in the Rupee
will prevent sharp fall in prices on the MCX.
EIA Inventories Data
As per the US Energy Department (EIA) report, US crude oil
inventories increased unexpectedly by 0.3 million barrels to 394.10
million barrels for the week ending on 14th June 2013. Gasoline stocks
rose by 0.2 million barrels to 221.70 million barrels and whereas
distillate stockpiles fell by 0.5 million barrels to 121.60 million
barrels for the last week.
Natural Gas
EIA Inventories Forecast
US Energy Information Administration (EIA) is scheduled to release
its weekly inventories and US natural gas inventory are expected to
increase by 89 billion cubic feet (bcf) for the week ending on 14th June
2013.
Outlook
From the intra-day perspective, we expect crude oil prices to trade
lower on the back of rise in US crude oil inventories. Additionally,
weak global markets coupled with sharp upside in the DX will exert
downside pressure on the prices. Further, statement from Fed regarding
curtailing its bond buying program by end of this year will act as a
negative factor. In the Indian markets, depreciation in the Rupee will
cushion sharp downside in prices on the MCX.
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