Published on 30/05/2017 10:00:41 AM | Source: Angel Commodities Pvt Ltd

We expect MCX copper prices to trade lower today - Angel Commodities

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


Bullion

Gold

On Monday, international markets were closed on account of Memorial Day in the US while MCX gold prices rose marginally by 0.04 percent at Rs.28900 per 10 gms.

Gold hit its highest level since May 1 on Friday at $1,269.50 an ounce, as nervousness over U.S. President Donald Trump's negotiations with other world leaders at the G7 summit prompted investors to buy bullion as an alternative to nominally higher-risk assets such as shares.

 

Silver

Spot silver prices rose by 0.1 percent on Monday to close at $17.4 per ounce in a thin volume trade as markets were shut down on account of holidays in the US and other global markets.

On the MCX, silver prices rose by 0.61 percent to close at Rs.40337 per kg.

 

Outlook

We expect gold prices to trade sideways today as all the risk and uncertainties have faded for the time being while the minutes of the US Fed talked about slow pace of tightening in 2017 which will be tied to economic rebound.

On the MCX, gold prices are expected to trade sideways today; international markets are trading flat at $1267 per ounce.

 

Energy

Crude Oil

Oil prices rose slightly on Monday, barely paring last week's steep losses with the market remaining cautious as increases in U.S. drilling activity have undercut an OPEC-led push to tighten supply.

Trading was subdued due to public holidays in China, the United States and Britain. The market remains uncertain about whether the extension of output cuts by OPEC and other producing countries will be enough to support prices.

MCX oil prices rose by 1.4 percent on Monday to close at Rs.3259 per barrel.

 

Outlook

We expect oil prices to trade higher as strong start to the summer driving season will be a supportive factor for oil prices while high global inventories remains a cause of concern.

On the MCX, oil prices are expected to trade sideways today, international markets are trading higher by 0.16 percent at $49.86 per barrel.

 

Base Metals

LME markets were closed yesterday on the eve of Spring Day holiday. LME base metals traded mixed last week as global investors were cautious ahead of FOMC meeting minutes, OPEC and G7 meeting.

MCX base metals traded mixed in absence of cues from international markets.

 

Copper

LME Copper prices traded lower by 0.4 percent to close at $5657.5/t last week as Chinese demand woes continued to hurt following recent Moody’s downgrade and weak imports data. Moody’s downgraded Chinese sovereign debt rating on 23rd May’17 for the first time since 1989, adding to slew of worries regarding growth of the mainland nation.

Also, the International Copper Study Group (ICSG) said in its latest monthly bulletin that the global world refined copper market showed a 93,000 tonnes surplus in February, compared with a 55,000 tonnes surplus in January.

However, weaker DX and decline in LME stocks are supporting the metal. However, decline in LME stocks for six sessions in a row restricted sharp downside. LME Copper inventories plunged by 5.3 percent to 318,650 tonnes last week.

Also, supply disruption concerns from one of the major mines came to the rescue. Freeport McMoRan Inc said on Thursday that mining and milling rates at its Grasberg mine in Papua, Indonesia have been affected by an extended strike, and a "large number" of about 4,000 absentee workers were deemed to have resigned.

MCX copper prices gained 0.1 percent yesterday to close at Rs.367.6 per kg on Monday in absence of cues from LME markets.

 

Outlook

LME Copper prices are currently trading lower by 0.3 percent at $5640/t. Prices are expected to trade lower today as investors will be wary ahead of Chinese manufacturing PMI data due tomorrow and US Nonfarm payrolls data later this week.

We expect MCX copper prices to trade lower today.

 

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