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After a week of generally adverse news flows, commodity markets are likely to open with a positive bias, Mr V. Harish, Senior Analyst with Geojit Comtrade said.
The Forward Market Commission’s initiatives to contain volatility in futures trading had dented the market sentiment last week.
There was pressure on the dollar on the back of weak US gross domestic product numbers. This was even after downgrading of Spain’s credit rating put further pressure on the Euro.
A relatively firm trend in gold prices had dented the value of the rupee in Indian markets. But for gold, copper and energy prices which rallied on Friday, the markets had remained muted.
Gold
Gold is technically strong on charts, a report from CapitalVia Global Research said.
Last week gold was trading on the higher side and closed near to its week high. In the coming week, 28,600 will act as a major support and 29,600 will act as a major resistance, the report added.
Silver was seen in a consolidation phase. It was seen trading on the lower side for most part of the week but for the last two days, when it bounced back.
Crude
Crude was seen in a consolidation phase. Through the trading over the week, crude oil had recovered slightly and was able to make a close above the previous two-week lows.
However, the continuing Euro Zone worries could weigh down on crude oil markets. Growth concerns of Europe had seen Nymex crude falling from its four-week high. The fair news from the US and bad tidings from Europe are expected to guide the market sentiments.
Rupee
The rupee traded low at 52.57, down 0.26 per cent, on increased dollar demand from importers and flat equity markets. With crude prices recovering last week-end, the demand for dollar could revive from importers. This could guide the sentiments in the domestic unit this week also.
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