UK manufacturing production increased 0.6 percent in December as against 0.6 percent in November. The forecast stood at 0.5percent rise in December. However, the industrial production of the country grew at slow pace by 0.4 percent in December, as against the decline of 0.1 percent in the prior month. Markets had expected 0.5 percent rise in the production in December. India’s food inflation eased marginally to 16.91 percent in the week ending 1st January from the previous 18.32 percent in the prior week. The fuel inflation also eased to 11.53 percent from 11.63 percent in the week earlier. Indian equities had declined taking cues from mixed sentiments in the European equities in the afternoon session. The Spot Rupee depreciated almost 0.5 percent and were trading at 45.20 till 4.00 pm IST today. Spot gold prices declined around 0.4% in the Asian trade today and were hovering around $1379.84/oz at 4.00 pm IST. But, depreciation of the Indian Rupee supported the yellow metal prices on the domestic platform today. On the MCX, gold prices were trading higher at `20,408/10 gm at 4.00 pm IST. All the base metals came under pressure due to strength in the US dollar and mixed sentiments in the global equity markets today. Copper was the worst performer of the day, as the metal prices declined more than 1 percent on the LME today. Prices touched an intra-day low of $9573/tonne on the LME and were hovering around $9578/tonne till 4.00 pm IST. On the MCX, the red metal prices witnessed less declines due to depreciation of the Indian Rupee today. Crude oil prices traded lower in today’s session, mainly taking cues from strength in the US dollar and mixed sentiments in the global financial markets today. Prices declined around 0.2 percent and touched an intra-day low of $91.61/bbl till 4.00 pm IST today. But, depreciation of the domestic currency led oil prices to trade higher around 0.7 percent on the MCX around the same time. As per Reuters poll, US natural gas inventories are expected to decline between 113-158 billion cubic feet (bcf) for the week ending 7th January. Outlook On the macroeconomic front, the US authorities are expected to release the data on unemployment claims, PPI, trade balance and core PPI today. Base metal prices will take cues from the movement in the dollar and news on the European economies. Crude oil prices are expected to trade with a positive note today, mainly taking cues from supply tightness and hopes of further increase in heating oil demand from the colder areas of US Northeast which is expected to face a snowstorm. Gold prices are expected to trade on a positive note but sharp gains will be capped on account of dollar strength.

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