Gold, Crude Oil trade higher; base metals weaken

UK’s manufacturing PMI index dropped to 57.1 in March from the previous 60.9 in February. Markets had estimated index to stand at 60.7 in the last month.
Unemployment rate in the Euro Zone declined as expected to 9.9 percent in February as against 10 percent in the prior month. Euro Zone Final Manufacturing PMI index declined slightly to 57.5 in March from the previous 57.7 in February. Italian monthly unemployment rate dropped to 8.4 percent in February as compared to 8.6 percent in January.
Spot Gold prices traded higher 0.2 percent today, due to mixed sentiments in the global financial markets which made gold look attractive for investors. But sharp gains were capped due to strength in the US dollar. Prices touched an intra-day high of $1434.30/oz and were hovering around $1433.18/oz till 4.00 pm IST. On the MCX, gold prices traded on a flat note on account of Rupee appreciation and were hovering around `20,698/10 gms today.
Base metal prices came under pressure on the LME today, mainly tracking mixed sentiments in the global equity markets, a stronger dollar and ongoing geo-political tensions. Appreciation in the Indian Rupee led further declines on the domestic bourses. Lead was the worst performer of the day, as the metal declined more than 2 percent on both the exchanges i.e. LME and MCX.
Crude oil prices traded higher by 0.4 percent today and touched an intra-day high of $107.65/bbl till 4.00 pm IST. Rising unrest in the Middle East and increasing supply concerns supported oil prices. But sharp gains were capped due to strength in the US dollar coupled with mixed global market sentiments. On the MCX, crude oil May contract rose around 0.8 percent and were hovering at `4783/bbl today.
Outlook
We expect base metals to trade lower on account of choppy global market sentiments, a stronger dollar and uprising geo-political worries. There is host of economic data to be released from US today - non-farm employment change, unemployment rate, average hourly earnings, ISM manufacturing PMI, construction spending , ISM manufacturing prices and total vehicle sales. Base metals will also take cues from the US data in today’s trading session.
Crude oil prices are expected to trade higher today on account of supply worries due to rising turmoil in the Middle East. But sharp gains will be capped due to choppy sentiments in the global equity markets along with strength in dollar.
Gold prices are expected to higher today, on account of geo-political tensions and choppy sentiments in the global financial markets which will fuel safe-haven demand for gold. But sharp gains will be capped due to rising expectations of the rate hike by European central bank (ECB).

(Source: http://www.commodityonline.com/futures-trading/technical/Gold-Crude-Oil-trade-higher-base-metals-weaken-22967.html)