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Published on 3/07/2019 9:16:10 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 Tuesday, spot gold prices ended higher by 2.47 percent to close at $1418.2 per ounce after rising global trade uncertainties dent the risk appetite amongst investors and in turn boost the appeal for the bullion metal.

Expectation of trade deal between U.S. & China weighed eased of the slowdown concerns a bit. However, US president Trump stated that any kind of deal between the two nations will somewhat be tilted in the favour of the United States.

Moreover, U.S. is planning to impose tariffs on $4 billion worth European Union goods over the prolonged dispute of the aircraft subsidies. Rising global tension led to an increase in the demand for safe haven metal.

Weakening of the manufacturing sector globally signals towards an evident slowdown which might drive the investors to take shelter under the safe haven asset and push Gold prices higher.

Silver

On Tuesday, Spot silver prices ended higher by 1.12 percent to close at $15.3 per ounce.

On the MCX, silver prices declined by 2.76 percent to close at Rs.36635.0 per kg.

Outlook

Weak economic data and rising global tensions might provide some support for the yellow metal.

On the MCX, gold prices are expected to trade higher today; international markets are trading higher by 1.31 percent at $1426.45 per ounce.

 

Energy

Crude Oil

On Tuesday, WTI Crude prices ended lower by 4.8 percent to close at $56.3 per barrel. prices declined significantly as weaker manufacturing sector data globally raised severe demand concerns for Crude.

Crude prices declined despite of continuation of output cuts by OPEC and its allies. In their latest meeting, OPEC+ along with Russia decided to continue with the production cuts in order to prop up Crude prices. However, worries over declining global demand weighed on the prices.

In their meeting last week, U.S. President & China president decided for a truce and no further tariffs to be levied by Washington which eased down global slowdown concerns. However, US president Trump stated that any kind of deal between the two nations will somewhat be tilted in the favour of the United States.

Outlook

Weaker manufacturing sector data globally signalled towards an evident slowdown and in turn dampened the demand prospects for Crude which pushed the prices lower. However, chances of continuation in supply cuts by OPEC+ might provide some support to prices.

On the MCX, oil prices are expected to trade higher today; international markets are trading lower by 0.57 percent at $56.57 per barrel.

 

Base Metals

On Tuesday, LME base metal traded significantly lower after weka manufacturing sector data globally dampened the demand prospects for the industrial metals.

In their meeting last week, U.S. President & China’s president decided for a truce and no further tariffs to be levied by Washington which eased down global slowdown concerns. However, President Donald Trump stated that any kind of deal between the two nations might be in the favour of U.S.

China steel production peaked in 2019 which might push the prices lower and in turn push weigh on Nickel and Zinc prices as well. Moreover rising production in India might further increase the supply and push the prices lower.

 

Copper

On Tuesday, LME Copper prices declined by 1.1 percent to close at $5887.0 per tonne. Prices declined after weaker manufacturing data around the global clouded the demand prospects for the red metal.

Outlook

Weaker manufacturing sector data might dampen the global demand prospects for the industrial metals.

On the MCX, Copper prices are expected to trade lower today; international markets are trading lower by 0.07 percent at $5891.25 per tonne.

 

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