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Published on 2/01/2020 10:53:08 AM | Source: Angel Broking Pvt Ltd

Oil 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 Wednesday, spot gold prices ended marginally lower by 0.01 percent to close at $1516.9 per ounce. Improvement in the trade and tariff situation between U.S. & China dented the appeal for the safe haven asset, Gold.

Gold posted its biggest rise in a decade as a raft of geopolitical uncertainties, including protests in Hong Kong and tensions on the Korean peninsular, as well as a long-drawn Sino-U.S. tariff war impacting global economic growth. The interim trade deal will be signed by both the nations on 15th January 2020 in the white house.

The interim trade deal is the first step to end the prolonged trade war which boosted the risk appetite amongst investors and weighed on the yellow metal prices.

Even the major central banks like the U.S. Federal Reserve, European Central Bank and PBOC had to resort to quantitative easing which further supported the yellow metal prices.

On the MCX, gold prices declined marginally by 0.10 percent to close at Rs.39067 per 10 gms.

Silver

On Wednesday, Spot silver prices ended flat closing at $17.8 per ounce while MCX silver prices declined 0.10 percent to close at Rs.46665 per kg.

Outlook

Easing of tension between U.S. & China might hamper the demand for Gold, the safe haven asset.

On the MCX, gold prices are expected to trade higher today, international markets are trading flat at percent at 1523.05 per ounce.

 

Energy

Crude Oil

On Wednesday, the U.S. markets were closed on account of New Year’s. Improvement in the trade and tariff situations between U.S. & China might ease down the demand worries for Crude and support the prices.

Tension arising from the Middle east might raise supply concerns and further support Crude prices. Markets showed little immediate reaction to news of U.S. air strikes in Iraq and Syria against an Iranbacked militia group, even as U.S. officials warned "additional actions" may be taken.

On the MCX, oil prices declined by 0.59 percent to close at Rs.4360 per barrel.

Outlook

The Middle East tensions might roil the oil markets and raise the risk premium while easing of tension between U.S. & China might further support the prices.

On the MCX, oil prices are expected to trade higher today; International markets are trading higher by 0.28 percent at $61.23 per barrel.

 

Base Metals

On Wednesday, the LME was closed on account of New Year’s. easing of tension between the super power nations, U.S. & China, might ease the demand concerns for industrial metals and support the pricers.

U.S. trade officials stated earlier in December’19 that the Phase one trade deal with China is completed which reinfused optimism in the markets. U.S. President Donald Trump said that the Phase 1 trade deal with China would be signed on Jan. 15 2020 at the White House.

The interim trade deal would be the first step to end the prolonged trade war which had hampered the growth prospects for industrial metals.

China's Purchasing Managers' Index (PMI) was unchanged at 50.2 in December’19 from November’19 which was still above the neutral level which further infused optimism in the markets.

 

Copper

On Wednesday, MCX Copper prices ended higher by 1.0 percent to close at Rs.443.7 per kg. Expectation of rising demand for industrial metals in China amid easing of the Sino-American trade tension supported the red metal prices.

Outlook

Optimism over a possible trade deal between U.S. & China might support the industrial metal prices.

On the MCX, Copper prices are expected to trade higher today; international markets trading higher by 0.79 percent at $6128 per tonne.

 

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