Published on 31/12/2018 9:57:52 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

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Last week, spot gold prices rose by 1.6 percent to trade at $1275 per tonne while MCX gold prices traded higher by 1.4 percent.

Consumer confidence posted its sharp decline in more than three years in December, rattling investors already nervous about prospects of global economic slowdown have resulted in safe haven demand for gold.

Fall in China’s industrial profits and dollar weakness in the recent weeks has resulted in further strength in gold prices.

The partial U.S. government shutdown, which is widely expected to continue, was also supporting gold.



Spot silver prices rose 3.9 percent to close at $15.3 per ounce in line with rise in gold prices coupled with weakness in the dollar index.

On the MCX, silver prices rose 3.1 percent to close at Rs.39260 per kg.



We expect gold prices to trade higher today continuing its momentum from the previous trading session while fall in China’s industrial profits will further raise safe haven for the yellow metal.

On the MCX, gold prices are expected to trade higher today, international markets are trading lower by 0.18 percent at $1278 per ounce.



Crude Oil

Brent oil declined by 1.2 percent during the week as growth in U.S. crude stockpiles and ongoing concerns about the global economy kept markets under pressure.

The United States has emerged as the world's biggest crude producer, pumping 11.6 million barrels per day (bpd), more than both Saudi Arabia and Russia.

Meanwhile, Russian Energy Minister Alexander Novak said that rising protectionism and the unpredictability of the U.S. administration had greatly contributed to global oil price volatility over the past two years.



We expect oil prices to trade higher today on bargain hunting at lower levels while the glut continue to be there in the oil markets.

On the MCX, oil prices are expected to trade higher today, international markets are trading higher by 0.84 percent at $45.71 per barrel.


Base Metals

Last week on the LME, base metal prices were weighed by concerns over slowdown in global growth. LME Lead was the highest gainer amongst all the base metals.

LME Aluminium declined by 2.7 percent as supply curbs eased off after US announced to lift sanctions from Rusal. The U.S. Treasury stated that it would remove sanctions from the Russian Aluminium Company, Rusal if they reduced the stakes of businessman Oleg Deripaska as he was in the U.S. sanction list. As part of the restructuring Rusal agreed in exchange of the waiver from U.S. sanctions, board chairman Matthias Warnig resigned.

China’s Aluminium producers have cut around 3 million tonnes of smelting capacity in 2018 and now they are planning to cut output by at least another 800,000 tonnes per year in the coming months.

China's steel and iron ore prices started to appreciate in response to winter output curbs. Tightening environmental measures in to steel producer, Tangshan has raised supply curbs.



Last week, LME Copper prices rose marginally by 0.5 percent. Copper prices recovered but gains were limited by global growth concerns and slowing demand in China.

Indian court stated that Vedanta’s Copper smelter which has a capacity of 4,00,000 tonnes cannot resume production unless it hears a case that challenges the decision made by the country's environment court.



LME Copper price is currently trading higher by 0.74 percent at $6036.75 per tonne. Global growth concerns might weigh on the red metal prices.

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


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