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Published on 8/11/2019 11:41:09 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

Bullion

Gold

On Thursday, spot gold prices ended lower by 1.51 percent to close at $1467.8 per ounce. Risk appetite amongst investors boosted after tensions between U.S. & China eased down denting the appeal for the safe haven asset, Gold.

U.S. & China stated that they would revoke a few tariffs which were imposed earlier as a part of the phase one agreement of the trade deal. Conciliatory gestures by both the super power nations signalled towards easing of tension in the 16 month long trade spat.

However, a consistently string labour market in U.S. supported the Dollar which further weighed on the yellow metal prices. a larger than expected fall was witnessed in the the number of Americans filing applications for unemployment benefits which supported the U.S. Dollar

Silver

On Thursday, Spot Silver prices ended significantly lower by 2.91 percent to close at $17.6 per ounce in line with the international Gold prices.

Silver prices on the MCX plunged over 3.2 percent to close at $44168.0 per kg.

Outlook

Optimism over a possible trade deal between U.S. & China amid positive economic data from U.S. might boost the risk appetite amongst investors and further pressurize Gold prices.

However, an actual deal between the super power nations might take time which might restrict the downfall.

On the MCX, gold prices are expected to trade sideways today; international markets are trading lower by 0.54 percent at $5966.7 per ounce.

 

Energy

Crude Oil

On Thursday, Crude prices ended higher by 1.42 percent to close at $57.2 per barrel. Prices found some support after U.S. & China made conciliatory gestures to mend the protracted trade tension which has roiled the markets for over 16 months.

The gains were capped as a concrete outcome of the prolonged trade and tariff spat might take. Prices have been under pressure as uncertainties around the 16-month long trade war between the United States and China sapped the demand prospects for oil. Markets might have a cautious approach as the meeting between U.S. & China’s Presidents has been pushed till December 2019.

Outlook

Positive economic data from U.S. amid optimism over a possible trade deal between U.S. & China might provide some support for Crude.

Markets might have a cautious approach as the meeting between U.S. & China’s Presidents has been pushed till December 2019. Moreover, rising U.S. Crude inventory levels might further weigh on the prices.

On the MCX, oil prices are expected to trade higher today; international markets are trading lower by 0.42 percent at $56.91 per barrel.

 

Base Metals

On Thursday, industrial metal prices on the LME were mixed with Nickel being the highest loser amongst the pack. Nickel prices dipped after Indonesia allowed few of the Nickel ore exporters to resume with their shipments after a temporary halt. Indonesia had announced to stop all exports for a short span ahead of the actual ban effective in January 2020 to investigate reports of violation in exporting activities. However, the downfall was limited as the export ban announced by Indonesia might impact the steel output and boost the prices.

Base metal found some support after U.S. & China announced to roll out tariffs imposed earlier as a part of the phase one of the trade deal. Easing of tension between the biggest economies on the world might improve the risk demand prospects and push the prices higher.

Lead prices dipped after inventory levels in China picked up reflecting the rise in usage of recycled output. Lead prices rose last month on widening global deficit and falling stocks.

 

Copper

On Thursday, copper prices on the LME ended lower by 0.56 percent to close at $5907.0 per tonne. Optimism over possible trade deal between U.S. & China, the biggest consumers of industrial metals pushed the red metal prices higher.

Outlook

Optimism over a possible trade deal between U.S. & China might provide some support for industrial metals.

On the MCX, Copper prices are expected to trade higher today; international markets trading marginally higher by 0.02 percent at $5886.25 per tonne.

 

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