GOLD
Spot gold prices fell by more than 2% approx. $14.80 on Monday on shrinking fears over Portugal’s banking sector and a gain in U.S. equities prompted investors to take profits after bullion’s rally to 3-1/2 month highs last week. On the other hand, US Dollar Index (DX) traded on a flat note and declined marginally yesterday on the back of rise in risk appetite in market sentiments which led to decline in demand for low yielding currency.
The yellow metal rallied to its highest since mid-March at $1,345 an ounce last week after minutes of the U.S. Federal Reserve's last meeting concerns about Portugal's largest listed bank sparked heavy selling of equities. Stock markets in Europe and Asia rose as investors put aside concern about euro zone banks and looked forward to corporate earnings and global economic events, including testimony from the head of the Fed.
Forecast:
Today, Gold is trading at $1307 and we believe overall bearish trend which has been seen for the past several months is in progress and we recommend selling from higher levels. Still above $1300 level and need to break down below the $1280 level before feeling confident enough to start selling.
SILVER
Weakness in gold prices as Portugal fears receded led to a bout of selling as spot silver prices declined by 2.4% in yesterday's session and closed at $20.9 per ounce.
Forecast:
At present, grey metal is under performing and remain on sideways and may put some downward trajectory as it is continue to decline from previous trading session. Level $19.80 is enough supportive to break till then it is on side-lines.
CRUDE
WTI oil prices gained marginally by 0.1% while Brent crude oil prices declined by 1% as investors dump crude on fading fears of Portugal situation. Crude Oil eased by 45 cents to trade at 100.39 looking to fall below the $100 level as global supplies outweigh demand and production continues to increase. Renewed violence in Libya raises questions about the production from the nation. Meanwhile, protesters have shut down production at the eastern Libyan oil port of Brega.
Forecast
As the violence in Libya and political deadlock in Iraq raises concerns on the supply of Crude. On the contrary for Tehran nuclear programme; if sanctions are eased the crude markets will balance of the supplies from Iran acting as a negative factor. As per the technical, if we break down below the $97 level, this market should continue to go much lower.

TODAY'S DAY RANGE

DAY'S HIGHLIGHT

• LME Copper prices fell yesterday owing to fears of excessive rally.

• Euro Zone Industrial Production declined by 1.1% in May.

• Gold prices plunged owing to easing of Portugal's bank concerns.