OUTLOOK FOR GOLD, SILVER, CRUDE, COPPER

Gold gains on back of weak US data

After remaining stead at the benchmark level of USD 1,200 per ounce, gold suffered a downfall in the past few days. However, on the back of weak US data, the precious metal has regained some of its position and is trading steadily between USD 1,993 – USD 1,995 per ounce. The US had released sluggish data yesterday – jobless claim, home sales and manufacturing – all posting less than expected figures. This lead to investors looking at gold as safe haven, helping the metal gain 0.6 per cent as compared to the previous session. Though, gold may see further hike in prices going forward, one also needs to focus on the Federal Reserve’s announcement for interest rate hike next week.

Silver may trade at USD 16.50 in 2015

Silver is expected to maintain an average price of USD 16.50 per ounce in the spot market this year, as per a report by Mitsubishi UFJ. The metal might see further weakening in the second quarter of this year, but may recover in the second half of the year, with possible rise in industrial demand. However, in case gold gets impacted due to the impending hike in interest rates in the US, silver may also feel the effect in prices. Fall in prices may provide opportunities for the physical market. Investing in the metal in the short-term may not provide much gain.

Crude continues to hike on back of Yemen crisis

Crude oil has become steady with the prices reaching the 2015 high, on the back of renewed air strikes in Yemen, raising concern for supply disruption from Middle East. The energy commodity opened at INR 3,670 per barrel at MCX, and is now trading at INR 3682 per barrel, after reaching a high of INR 3,696 per barrel during the day session. Crude oil prices in the international market have increased by around USD 10 per barrel in April, due to tensions in Middle East, decline in production in the US and strengthening of demand in the global market. Brent crude oil had been at USD 65.09 a barrel, while US crude was at USD 57.82 a barrel in the morning session.

Copper moves up, gain may not hold for long

Copper is seen to be trading in an upper edge, after opening at INR 376.3 per kg, it is now at INR 382.1 It has moved up after yesterday’s decline due to weak Chinese industrial data. The momentum in copper is seen due to strengthening of the share markets in Asia. Further, oil prices are seen to be at an upward trend, which supported the metal at the London Metal Exchange (LME). Experts are also predicting that due to lack of supply of the metal – on the back of disruptions in copper mines – prices saw a hike. However, the demand and supply gap may not sustain for long, with the new mines in Peru, Zambia, Chile, Mongolia and Panama expecting to provide more supplies and demand witnessing slackening in the near future. As per International Copper Study Group, in 2015, supply is expected to grow by 4.3 per cent on year-on-year basis, while the demand would only grow by 1.1 per cent year-on-year.