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Published on 18/06/2019 10:56:10 AM | Source: Angel Broking Pvt Ltd

Oil prices are expected to trade lower today - Angel Commodities

Posted in Commodities Reports| #Commodity Tips #Angel Broking Pvt Ltd

Bullion

Gold

On Monday, Gold prices declined by 0.15 percent to close at $1339.3 per ounce. Prices declined over robust US economic data which signalled towards stronger economy and weighed on the possible chance of a rate cut by the U.S. Federal Reserve.

Robust U.S. manufacturing data, retail sales and consumer confidence pointed towards steady growth and lowered the expectation of easing the interest rates which weighed on the Bullion metal prices. Markets will have a keen watch on the Fed’s meeting which is on 18th & 19th of June 2019 i.e. today and tomorrow.

On the MCX, prices declined by 0.07 percent to close at Rs.33021.0 per 10gms.

Silver

On Monday, Spot silver prices ended lower by 0.24 percent to close at $14.8 per ounce in line with the Gold prices

On the MCX, silver prices rose marginally by 0.1 percent to close at Rs.37455.0 per kg.

Outlook

Upbeat US economic data pushed the Dollar higher which might weigh on Gold prices.

On the MCX, gold prices are expected to trade higher today; international markets are trading higher by 0.13 percent at $1344.65 per ounce.

 

Energy

Crude Oil

On Monday, Crude dipped by 1.1 percent to close at $51.9 per barrel. Crude prices have declined over 20 percent after hitting the highest levels in April 2019 over global demand concerns. Escalating trade tension between US and China coupled with weak economic data pushed the prices lower.

Investors will have an eye on the G20 summit which is to be conducted in Japan later this month where U.S. President Donald Trump will likely meet Chinese President Xi Jinping. However, situations might worsen if the super power nations fail to strike a deal.

Tension arising from the Middle East after the last week’s attacks on two oil tankers in the Gulf of Oman limited the downfall in the prices.

Outlook

Weak economic data from China coupled with rising tension between U.S. & China might weigh on the prices. .

On the MCX, oil prices are expected to trade lower today; international markets are trading lower by 0.1 percent at $51.87 per barrel.

 

Base Metals

On Monday, base metals on the LME ended marginally higher except for Nickel which declined by 1.3 percent to close at $11765.0 per tonne. Weakening of demand Chinese mills over production curbs in top steelmaking city of Tangshan pushed the Nickel prices lower.

Weaker Dollar over a possible rate cut by the U.S. Federal Reserve supported the base metal prices. However, declined industrial out growth in China capped the gains.

The prolonged trade tension between U.S. and China continues to hamper the demand prospects for the industrial metals. Investors will have an eye on the G20 summit which is to be conducted in Japan later this month where U.S. President Donald Trump will likely meet Chinese President Xi Jinping. However, situations might worsen if the super power nations fail to strike a deal.

 

Copper

On Monday, LME Copper prices rose by 0.4 percent to close at $5845.0 per tonne. Chuquicamata copper mine, which is one of the world’s largest Copper mine lopcated in Chile witnessed a fall in output by over 50 percent over the ongoing union strike. The strike has continued for four days. Moreover, Zambia's Mopani Copper Mines (MCM) has shut its Mufulira smelter for some major renovation activity which might further reduced the global output and in turn support the red metal prices.

Outlook

Weakening of the Chinese economy over rising uncertainties of the trade spat between US and China might weigh on the industrial metal prices.

On the MCX, Copper prices are expected to trade higher today; international markets are trading higher 0.05 percent at $5847.25 per tonne.

 

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