Spot Gold prices were trading in the positive territory till 4.00 pm IST today as the dollar weakened marginally against the euro paving way for the yellow metal prices to move upwards. The dollar rally against the Euro stalled as the Greece parliament is preparing to pass Prime Minister George Papandreou’s 4.8 billion-euro austerity package. However, the labor unions and state workers have started protesting against these measures and hence the government may face difficulties to implement them. Moreover, there is no news of financial assistance to the ailing economy. The dollar may rebound back if risk aversion emerges back in the market. Gold prices may come under pressure if the dollar strengthens. Copper prices gained today on the LME till 4.00 pm IST amidst the weakening dollar and decreasing inventories on the LME. Moreover, concerns of supply of the red metal from Chile have supported the prices. Chile remains concerned as earthquakes continue to hit the country. Major production units may close back again if the earthquake problems persist. Inventories of copper declined today by 1075 tonnes after a huge decline of 6350 tonnes yesterday. However, if the dollar strengthens back, sharp gains in the metal prices may be capped from upside. Crude oil prices gained today on a report that the Organization of Petroleum Exporting Countries (OPEC) will cut shipments by 2.3% in the month ending 20th March. OPEC which supplies around 40% of the world’s crude oil will ship 22.87million barrels a day in the four-week period, as against 23.42 million a month earlier. Prices also rose on optimism that fuel demand will increase amid improved prospects for an economic recovery in the US, the world’s biggest energy consumer. Outlook The US is expected to announce economic data on unemployment rate and non-farm employment change today. Forecasts indicate that the unemployment rate may increase. Mixed economic updates from the largest economy are affecting the investor sentiments. Greece’s problems still pose a threat as any financial assistance from the European Union is not yet finalized. The dollar may rebound on the back of increasing concerns of economic recovery. Metal prices may come under pressure if the economic data comes out to be unfavorable. Crude oil prices will take cues from the economic updates to be released later this evening and the movement in the dollar.

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