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After a week of some recovery at the base metals counter and lower quotes in rupee and crude, sentiments are likely to remain mixed at the commodity markets this week too.
Shares as well as commodities declined ahead of the employment data from the US as investors and traders remained on the sidelines.
Following favourable economic data from the US, expectations of a stimulus package has waned and the dollar has strengthened.
Gold, silver
For the next week, gold and silver prices are expected to trade lower on account of strength in the US dollar. However, a weaker rupee may cushion sharp decline at the Multi Commodity Exchange.
Weighed down by the euro, spot gold had continued to glide down, heading to post its biggest weekly drop in a month. Elections in some European countries had its bearing on euro.
Meanwhile, spot silver dropped to its lowest levels in three-and-a-half months. In the Indian markets, however, losses were capped as movements in rupee continued to head down.
Gold is technically consolidating on the charts. Last week, the yellow metal was trading in a range for most part of the week, a report from CapitalVia Global Research said.
Silver is also technically weak on the charts and was seen trading on the lower side for most part of the week.
Base metals
Base metal complex traded mostly steady in a narrow range waiting for indications from the US jobs data to gather further cues on economic growth in the world’s largest economy.
As disappointing economic data from both sides of the Atlantic dented the outlook for demand, London copper steadied on Thursday. This was after posting its biggest daily drop in more than a week in the previous session.
Crude
Crude oil stretched its previous session's decline with Brent crude slipping below $116 a barrel and Nymex crude heading to post the first weekly decline in four weeks pressured by gloomy economic outlook and high inventories.
Crude remains in a consolidation phase. Last week, it was trading on the higher side for the initial days of the week, but on the last two days it fell sharply and came down to its three-month low.
Rupee
Rupee was just shy of touching Rs 54 a dollar at the end of last week, a report from Geojit Comtrade said.
Sentiments in dollar and gold are likely to dictate the trends this week. Some amount of recovery is possible in the rupee from the present lows.
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