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Published on 13/12/2018 10:04:41 AM | Source: Angel Commodity Pvt Ltd

Gold prices are expected to trade higher today - Angel Commodity

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

Bullion

Gold

On Wednesday, spot gold prices rose marginally by 0.21 percent to close at $1245.4 per ounce as the dollar slipped and expectations for the number of U.S. interest rate hikes next year dimmed, increasing the appeal of non-interest yielding bullion.

The dollar was weaker against a basket of currencies after data showed U.S. consumer prices were unchanged in November, supporting the view that underlying inflation remained firm, but not enough to push the Federal Reserve to take a more aggressive stance.

On the MCX, gold prices declined 0.64 percent to close at Rs.31732 per 10 gms.

 

Silver

Spot silver prices rose 1.4 percent to close at $14.7 per ounce in line with rise in gold prices while weak dollar also helped silver.

On the MCX, silver prices rose 0.48 percent to close at Rs.39076 per kg.

 

Outlook

We expect gold prices to trade higher today, as weak dollar and dimmed prospect of interest rate hikes are near term push factors.

On the MCX, gold prices are expected to trade higher today, international markets are trading lower by 0.11 percent at $1244 per ounce.

 

Energy

Crude Oil

WTI oil prices declined 1 percent to close at $51.2 per barrel after reports that Iran's oil minister said divisions exist within the Organization of the Petroleum Exporting Countries, leading futures to give up earlier gains on OPEC-led production curbs and export cuts from Libya.

On the MCX, oil prices declined marginally by 0.1 percent to close at Rs.3749 per barrel.

 

Outlook

We expect oil prices to trade higher today, international markets are trading higher by 0.35 percent at $51.33 per barrel.

Weaker economic outlook and higher production elsewhere have weighed down the market.

 

Base Metals

On Wednesday, Base metals on the LME traded negative except Nickel. Zinc declined by 1.2 percent to close at $2566.0 per tonne, the most amongst the pack.

Trade dispute between U.S and China show signs of easing off as China agreed to cut the tariffs on US-built cars and auto parts to 15 per cent form the current tariff rate of 40 per cent. Expectation of the fourth rate hike by FED in its meeting next week restricts the gains for basemetal.

Declining demand for steel as construction projects in China are halted because of the cold weather pushed the steel prices lower in the rec ent weeks. Prices might appreciate over expectations that China will launch more infrastructure projects in 2019 which could increase the demand in the world's top steel consumer.

 

Copper

On Wednesday, LME copper prices declined by 0.5 percent to close at $6140.0 per tonne. Trade spat between U.S. and China continue to weigh on the Copper prices.

LME Copper Inventories have declined over a five year low levels of 121,300 tonnes, down from 380,000 tonnes held in February. Declining Copper inventories in the warehouses of commodity exchanges point towards shortage of supply for the world’s most important industrial metal.

On the MCX, Copper declined by 0.8 percent in line with the international trends to close at Rs.442.9 per kg.

 

Outlook

LME Copper price is currently trading higher by 0.62 percent at $6190.0 per tonne. Easing of the trade spat between U.S. and China might support the base metal prices. Investors will also look forward for the FOMC gathering in their meeting on Dec 18- amid U.S.-China trade tension.

On the MCX, copper prices are expected to trade higher today.

 

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