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Published on 12/10/2018 10:35:18 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 Thursday, spot gold prices rose 2.46 percent to close at $1223.7 per ounce as U.S. Treasury yields fell to its two week low after Donald Trump criticized US FED for hiking interest rates too many times.

Meanwhile crash in global equities lead to investors running towards safe haven assets such as gold in turn leading to rise in gold prices.

Gold has fallen over 13 percent since hitting a peak in April, with investors increasingly opting for the safety of the greenback as the U.S.-China trade war unfolded against a backdrop of rising U.S. interest rates.

On the MCX, gold prices rose 1.94 percent to close at Rs.31325 per 10 gms.

 

Silver

Spot silver prices increased by 2.1 percent to close at $14.6 per ounce in line with spot gold prices while weaker dollar added support to rise in precious metal prices.

On the MCX, silver prices increased 1.01 percent to close at Rs.39650 per kg.

 

Outlook

Criticism by Trump over US FED’s policy is likely to help further boost in gold prices. Weaker dollar is likely to boost gold prices further.

On the MCX, gold prices are expected to trade higher today, International spot gold prices currently trading at $1223.4 down by 1.4 percent.

 

Energy

Crude Oil

On Thursday, WTI oil prices declined by 3 percent to close at $71. During the week WTI prices have knocked out nearly 5.3 percent of its gains.

The stock market sell off has investors offloading risk assets and the International Monetary Fund downgraded its global economic growth forecasts for 2018 and 2019 on Tuesday, potentially tempering demand for oil and its products.

Meanwhile, crude oil inventories from US came in at 6 million barrels against market expectations of 2.3 million barrels further helping in the downside in prices.

In the United States, nearly 40 percent of daily crude oil production was lost from offshore U.S. Gulf of Mexico wells on Tuesday because of platform evacuations and shut-ins ahead of Hurricane Michael.

On the MCX, oil prices rose 1.5 percent to close at Rs.5574 per barrel.

 

Outlook

IMF lowering global growth forecast and rise in inventories is likely to create further pressure on oil prices.

ON the MCX, oil prices are expected to trade lower today, international markets are trading higher by 0.55 percent at $71.36

 

Base Metals

On Thursday, LME base metals recovered after downfall in the early session. The downfall in Metals was followed by major market sell off on equity market as the macro economic outlook raised demand concerns.

After a sharp downfall in the early hours of the trading session LME Lead recovered the most amongst the pack. Yesterday, LME lead prices rose by 4.4 percent to close at $1997.5 per tonne. Lead prices have declined about 30 percent since February.

On the MCX, base metals traded in line with the international trends.

 

Copper & Aluminium

LME Copper prices recovered after declining sharply in the earlier half of the trading session to close at $6242.0 per tonne. LME Copper inventories fall for straight 13 days to their lowest since June 2006.

On the MCX, Copper prices rose marginally by 0.1 percent to close at Rs.459.3per kg.

On Monday, LME Aluminium prices declined by 0.6 percent to close at $2025.0 per tonne. Concerns over Alumina prices eases off as Alunorte, Alumina refinery in Brazil resumes to production in a few days. Norsk Hyrdo is keen to return to full output at the biggest single Alumina refinery.

 

Outlook

LME Copper is currently trading lower by 0.30 percent at $6253.0 per tonne. Constant escalation of the trade war between US & China is hampering the metal prices.

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

 

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