With US markets closed today for the Independence Day holiday, trading is expected to be light during the European session and then quiet the rest of the day. There is little in the way of eco data from around the globe.
Commodity markets closed higher for the second time in 3-days, with oil prices leading the way as they posted one of their biggest, broadest rallies ever, after news from Iran stoked Mid-east supply worries.
Spot gold climbed to a 2-week high, as signs of a slowing US economy fuelled investors’ expectation that central banks around the world will introduce new monetary stimulus.
Gold prices in India fell for a third straight session, weighed by a stronger rupee that hit its highest level in a month-and-a-half.
Gold holdings of SPDR gold trust, the largest ETF backed by the precious metal, declined to 1,279.51 tons, as on June 29.
Silver holdings of iShares silver trust, the largest ETF backed by the metal, declined to 9,681.63 tons, as on July 3.
The dollar index, which compares the US unit to a basket of other currencies, traded at 81.803, up from around 81.888 in late North American trading on Monday.
Copper rose to a 7-week high in international markets, leading a rally in industrial metals, on expectations that central banks will move to stoke economic growth. Copper futures for Sept. delivery closed up by 2.1% at $3.5405 per pound on the COMEX of the New York Mercantile Exchange.
Crude oil surged to a one-month high, on speculation that central banks from Europe to China will ease monetary policy to spur growth while sanctions against Iran added to the supply worries.
Brent crude rose more than 3% yesterday, topping $100 per barrel as rising tensions over Iran’s nuclear program sparked oil’s second rally in three sessions after a second-quarter slide. Iran said it had successfully tested missiles capable of hitting Israel in response to threats of military action against the Islamic Republic over its nuclear ambitions.
Crude oil stocks fell 3mn barrels, gasoline stocks fell 1.4mn barrels and distillate stocks fell 1.1mn barrels, as per API report. Crude stocks at the Cushing, Oklahoma oil hub rose 247,000 barrels.
Natural gas futures rose nearly 3%, boosted by some pre-holiday short covering & supported by hot weather in much of the nation that has increased air conditioning demand.