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Published on 17/01/2020 10:16:22 AM | Source: Angel Broking Pvt Ltd

Copper prices are expected to trade higher today - Angel Commodities

Posted in Commodities Reports| #Commodity Tips #Angel Broking Pvt Ltd

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Bullion

Gold

On Thursday, Spot gold prices ended lower by 0.22 percent to close at $1552.5 per ounce. Positive economic data published by U.S. & China coupled with the interim trade deal between U.S. & China shifted the investors towards riskier asset classes and dented the appeal for Gold.

Robust trade data from China amid surge in U.S. retail sales for the third consecutive month in December 2019 decreased the demand for the safe haven asset which weighed on the prices. Even the claims for unemployment benefits dipped for the fifth week which further improved the market sentiments.

Moreover, the interim trade deal between U.S. & China further weighed on the yellow metal prices.

Silver

On Thursday, Spot silver prices ended lower by 0.28 percent to close at $17.9 per ounce in line with the international Gold prices.

MCX silver prices ended marginally higher by 0.07 percent to close at Rs.46422 per kg.

Outlook

The signing of the trade between US and China amid robust economic data from U.S. & China has provided some relief to the investors and improved global risk appetite in turn pressurizing Gold prices.

On the MCX, gold prices are expected to trade sideways today

 

Energy

Crude Oil

On Thursday, crude prices ended higher by 1.23 percent to close at $58.5 per barrel. After declining for multiple trading sessions WTI Crude prices rose after the interim trade deal between U.S. & China eased demand concerns.

Prices were further supported after witnessing a dip in the U.S. Crude oil inventories by 2.5 million barrels per day against market expectations of 0.5 million barrels per day.

Meanwhile, OPEC expects lower demand for its crude oil in 2020 even as global demand rises, it said on Wednesday, as rival producers grab market share and the United States looks set for another output record.

Outlook

Optimism over the interim trade deal between U.S. & China and a dip in the U.S. Crude inventory levels supported the prices.

On the MCX, oil prices are expected to trade sideways today.

 

Base Metals

On Thursday, base metal prices on the LME were mixed with Nickel being the highest gainer amongst the pack. China’s finished steel exports dropped 7.3% year on year to 64.293 million mt in 2019, the lowest annual total since 2014, and an indication of robust steel demand despite higher crude steel capacity. Strong domestic steel might boost prices for nickel and zinc which are key for stainless steel manufacturing.

President Donald Trump on Wednesday signed an initial trade deal with senior a Chinese leader that includes pledges from Beijing to more than double its purchases from American farmers in the first year.

Under the trade deal, China has agreed to purchase more U.S. goods and services. However, markets might remain cautious as a significant portion of U.S. tariffs against China will remain in effect.

 

Copper

On Thursday, LME Copper prices ended lower by 0.24 percent to close at $6287 per tonne. The red metal falls on profit taking despite signing of the phase of the trade deal between US and China.

Outlook

Markets wait for the economic data of China which might signal towards the development in the economy of the biggest metal consumers.

On the MCX, Copper prices are expected to trade higher today;

 

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