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Published on 20/11/2019 10:14:58 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 Tuesday, spot gold prices ended higher by 0.10 percent to close at $1472.3 per ounce. Uncertainties revolving around the prolonged trade spat amid rising tension in Hong Kong dented the risk appetite amongst investors in turn boosting the demand for the safe haven asset.

President Donald Trump threatened of imposing fresh tariffs on China if the two nations fail to strike a deal soon which weighed on the market sentiments. President Donald Trump reluctant to roll back the tariffs levied on the Chinese goods signaled towards a persistent tension between both the nations.

President Donald Trump and U.S. FED Chair Jerome Powell met on Monday to discuss the economy situation. Markets will also have a keen watch on the U.S. Federal Reserve’s minutes from their latest meeting which is due on Wednesday i.e. today for cues on their further stance.

Silver

On Tuesday, Spot Silver prices ended higher by 0.67 percent to close at $17.1 per ounce while prices on the MCX rose by 0.40 percent to close at Rs.44862.0 per kg.

Outlook

Fading optimism over a possible trade deal between U.S. & China amid rising political tension in Hong Kong might boost the demand for Gold and push the prices higher.

On the MCX, gold prices are expected to trade higher today; international markets are trading marginally lower by 0.01 percent at $1474.15 per ounce.

 

Energy

Crude Oil

On Tuesday, WTI Crude prices dipped lower by 3.23 percent to close at $55.2 per barrel. Prices plunged over worries of excess oil supply in the global market amid escalating tension between U.S.-China.

The protracted trade war between the United States and China sapped the demand prospects for oil as U.S. President seems to be reluctant to roll back the tariffs. No major progress in the prolonged trade tension between the biggest oil consuming countries weighed on the demand prospects for Crude Prices and pushed the prices lower.

Moreover, reports showing chances of rising U.S. Crude inventory levels for the fourth consecutive week further pressurized the prices. The official inventory data will be published later in the day.

Outlook

No concrete outcome of the protracted trade war amid expectation of rising U.S. Crude inventory levels might weigh on the market sentiments and push the prices lower.

On the MCX, oil prices are expected to trade lower today; international markets are trading higher by 0.22 percent at $55 per barrel.

 

Base Metals

On Tuesday, Industrial metals prices on the LME were mixed with Lead being the highest gainer amongst the pack. Rising uncertainties between U.S. & China, the biggest consumers of industrial metals raised severe demand concerns for the metals and weighed on the prices.

Market sentiments were pressurized after U.S. President seemed to be reluctant for revoking the tariffs which signalled towards hint of tension persisting between both the nations. Tensions further escalated after U.S. threatened to impose further tariffs on China if both the nations fail to mend ways.

 

Copper

On Tuesday, copper prices on the LME ended higher by 0.77 percent to close at $5875.0 per tonne. Prices gained reflecting an uptrend in Shanghai copper after China’s central bank announced to provide more stimulus measures to try and get their economy back on track.

Outlook

No concrete outcome of the U.S.-China trade spat might weigh on the market sentiments and push the prices lower

On the MCX, Copper prices are expected to trade sideways today; international markets trading lower by 0.17 percent at $5871.5 per tonne

 

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