On Wednesday, spot gold prices declined 1.07 percent to close at $1241.8 per ounce as U.S. threat of tariffs on an additional $200 billion of Chinese goods pushed safe-haven flows to the U.S. dollar and dashed hopes that Washington would eventually step back from the escalating row.
U.S. President Donald Trump detailed overnight a list of Chinese products that could face 10 percent tariffs. The clock now starts ticking on a two-month period of public comment before the levies are imposed.
The news of more possible U.S. tariffs on China is the latest in a titfor-tat spat between the world's two largest economies.
On the MCX, gold prices declined 0.71 percent to close at Rs.30310 per 10 gms.
Spot silver prices declined 2 percent to close at $15.7 per ounce in line with decline in gold prices and profit booking at higher levels.
On the MCX, silver prices declined 1.21 percent to close at Rs.40147 per kg.
We expect gold prices to trade lower today continuing its weakness from the previous trading session while imposition of trade tariffs by US on China is disturbing the market sentiments, interest rate hike possibilities in the US are near term push factors for gold price weakness.
On the MCX, gold prices are expected to trade lower today, international markets are trading higher by 0.2 percent at $1243.7 per ounce.
WTI oil prices declined 5 percent on Wednesday to close at $70.4 per ounce as escalating U.S.-China trade tensions threatened to hurt oil demand, and news that Libya would reopen its ports raised expectations of growing supply.
The sell-off began early in the session after Libya's National Oil Company said it would reopen ports which had been closed since late June.
The selling pressure intensified as trade tensions between the U.S. and China raised concerns about demand. The specter of tariffs on a further $200 billion of Chinese goods sent commodities lower, along with stock markets, as tension between the world's biggest economies intensified.
On the MCX, oil prices declined 3.4 percent to close at Rs.4900 per barrel.
We expect oil prices to trade sideways today as trade tensions between US and China and possible opening of Libya’s exports are near term factors.
On the MCX, oil prices are expected to trade sideways today, international markets are trading higher by 0.6 percent at $70.8 per barrel.
Base metals traded lower on Wednesday as risky assets lost further momentum after the US threatened to slap additional tariffs on China.
MCX base metals traded lower in line with international trends.
LME Copper prices plunged by 3 percent on LME and MCX on Wednesday to one year lows as tensions between the US and China touched another peak after the Trump administration threatened to slap 10 percent tariff on $200 billion worth of Chinese imports. This sparked retaliation from the mainland nation, pushing risky assets off the table.
Concerns that the US tariffs on China would weigh on the economic growth of the mainland nation, sparked worries of weak base metals demand from the top consumer.
LME Copper stocks fell by around 2 percent on Tuesday, although it did not have much impact on prices amidst vague global economic situation.
LME Copper prices are trading higher by 0.8 percent at $6191/t. Copper prices are likely to trade sideways today as bargain buying will provide cushion after prices slipped sharply on additional tariff warning by the US on China.
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