Spot Gold prices traded little changed today but prices could decline today as gains in the dollar could curb demand for the metal as an alternative investment. The US Dollar is trading with a positive bias and touched a high of 77.84 today. Gold prices have fallen from a high of $1226/oz touched on 3rd December as the dollar strengthened and made the yellow metal look unattractive for holders of other currencies. If the dollar continues to strengthen then gold prices could trade with a negative bias ahead of the year-end. Copper prices gained 0.3% till 4.00 p.m. IST today as slight weakness in the dollar in early trade supported the upside. But prices could come under pressure as the dollar is trading with a positive bias and may put downside pressure on the red metal in the later part of the trade. But volumes remain vey low this week as traders prepare for the long holiday in the international markets on the back of Christmas and New Year. LME inventories for copper gained 3100 tonnes today and touched 479450 tonnes. Crude Oil prices traded in the positive territory above $73/bbl today, taking cues from the weakness in the dollar and on optimism that demand could increase as the global economy recovers from its worst recession since World War II. Prices could trade with a positive bias on expectations that increasing fuel demand in the US, the largest energy consumers could reduce rising inventories. But a sharp upside in prices could be capped if the dollar stages a bounce back. Outlook Gold prices could come under pressure if the dollar strengthens on the back of risk aversion in the financial markets. If the dollar stages a bounce back then prices could come under pressure. Copper prices too could take direction from the dollar as the currency has taken the prime position as the main driver for direction. Oil prices have staged a bounce back a sharp upside in the commodity could be capped if the dollar strengthens.

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