Gold hits record high of $1508, base metals, Oil up

India’s food inflation rose slightly after declining consecutively for three weeks to 8.74 percent for the week ending 9tni April. The country's inflation increased as fruits, meat and poultry products became costlier. The food inflation stood at 8.28 percent in the previous week. The fuel index also moved up to 13.05 percent in the same week as compared to 12.97 percent in the prior week.
German Ifo business confidence index declined to 1m10.4 in April from the previous 111.1 in March. Markets had estimated index to decline up to 110.6 in the current month.
UK's public sector net borrowing increased to 16.4 billion pounds in March as against rise of 10.3 billion pounds in February. Markets predicted net borrowing to increase upto 18.8 billion pounds in March. Retail sales in UK rose 0.2 percent in March as against the forecast of 0.5 percent decline. The country's retail sales had declined by 0.8 percent in February. While UK's prelim mortgage approvals reduced to 44,000 in March as against 47,000 in the prior month.
Spot Gold prices hit a record high of $ 1 s08.50/oz today, mainly on account of debt concerns, inflationary pressure and dollar weakness. Prices gained around 0.4 percent and are hovering around $1 506.80/oz till 4.00 pm 1ST. On the MCX, Gold June contract also traded higher by 0.5 percent and was hovering around 21,878/10 Gms.
Base metals traded in a positive territory on the LME today, mainly on the back of positive sentiments in the global markets coupled with weakness in the US dollar. Nickel was the top performer of the day, as the metal gained more than 1.5 percent on both the exchanges i.e. LME and MCX.
Nymex crude oil traded higher by 0.5 percent today, on the back of positive sentiments in the global equity markets and sharp decline in US crude oil inventories. A weaker dollar also supported prices further. Prices touched an intra-day high of $11 2.48/bbl and were hovering around $11 2.03/bbl. On the MCX crude oil prices touched an intra-day high of 5007/bbl and were trading at 4993/bbl till 4.00 pm 1st.
Outlook
We expect base metal and crude oil prices to trade higher today, mainly on the back of upbeat global market sentiments and weakness in the US dollar.
We expect gold to trade higher today, mainly on the back of falling dollar, debt concerns, inflationary pressure which will increase demand for gold.
Courtesy: Angel Commodities

(Source: http://www.commodityonline.com/futures-trading/technical/Gold-hits-record-high-of-$1508-base-metals-Oil-up-23354.html)