Gold Updates

All eyes were on Brussels on Wednesday as European ministers met to discuss about the prospects of Greece. Metal traders remained confused on the fate of major industrial metals on contradictory events governing the markets. Barring Nickel other metals were mostly on the sidelines.
On one hand, Europe crisis resurfaced after Moody's downgrade of France credit rating on the contrary US economy continued to resurge. The much talked term fiscal cliff was subsided a bit by the reports of better housing starts last night.
US census bureau reported a rise of 3.6% in the US housing starts in October to 0.894 million. The expectations were of a 3.7% decline. This was highest level of housing starts since July 2008.
Housing starts for September were revised down to 0.863 million units from a previously reported 0.872 million units. Meanwhile, building permits issued in October fell 2.7% to a seasonally adjusted 0.866 million, compared to expectations for a decline to 0.865 million.
In Japan, trade deficit has depicted a gloomy picture as exports fell sharply lower. Japanese exports were also reported to have plunged 6.5% amid tension between Japan and China.
Poor Japanese trade data is negative for Yen, as it increases the odds of more easing from the Bank of Japan. After the data yen tested a seven month low of 81.72 against the Dollar. The trade deficit hit 549 billion yen ($6.72 billion)
The US Dollar dwindled between gains and losses against the Euro before closing lower on Tuesday. The greenback tested a low of 1.2828 and a high of 1.2763. US currency settled at 1.2816, down 0.04%. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched down by 10 pips to 80.89.
LME Copper was almost sideways in Asian trades, trying to gather analyze the confusing situation. Copper three month forwards were trading at $ 7743 per tonne, compared to $ 7750 per tonne on Tuesday. MCX Copper settled at Rs 427.7 per kg. Metal broke its 100 EMA and tested a high of Rs 429.8 per kg.
LME Nickel settled at $ 16360 per tonne yesterday and is now up by $ 85 per tonne at $ 16445 per tonne. Nickel has slipped sharply lower from February 2011 levels of $ 29000 per tonne on fading steel demand.
This year Nickel has whipped 11% of its value in 2012. The prices were at $ 18420 levels at the beginning of this year. Higher production of stainless steel and rise in inventories due to lower demand has affected Nickel negatively.
MCX Nickel tested a one week high on the back of short covering in the current month contract. Stainless steel material Nickel tested a high of Rs 918 per kg before settling at Rs 909 per kg, up 1.2%.
LME Zinc was down by $ 18 per tonne at $ 1916 per tonne on Wednesday. MCX Zinc ended last session at Rs 105.05 per kg, down 0.4%.