Published on 29/03/2017 10:16:09 AM | Source: Angel Commodities Pvt Ltd

We expect MCX copper prices to trade sideways - Angel Commodities

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


Bullion

Gold

On Tuesday, spot gold prices declined by 0.2 percent to close at $1251.5 per ounce after nearing the prior session's one-month high, as the U.S. dollar, Treasury yields and stock markets extended gains. Bullion was higher earlier on support from U.S. political and economic uncertainty and expectations of a lower dollar.

The move came as Kansas City Federal Reserve President Esther George said she needs more details on the Trump administration's fiscal proposals.

Investor demand for gold can be seen in the world's largest goldbacked exchange-traded fund, New York-listed SPDR Gold Shares, which reported an inflow of 2.7 tonnes on Monday.

On the MCX, gold prices rose marginally by 0.14 percent to close at Rs.28848 per 10 gms.

 

Silver

Spot silver prices rose by 0.4 percent on Monday to close at $18.2 per barrel in line with rise in base metals complex although dollar index strengthened by 0.6 percent in yesterday’s trade.

On the MCX, silver prices rose by 0.63 percent to close at Rs.42388 per kg.

 

Outlook

Gold and silver prices are expected to trade positive although we see some profit taking in the recent trading sessions as investment demand has gained in the past few days with inflows in the SPDR gold trust and uncertain global environment adding further push.

On the MCX, gold prices are expected to trade positive, although international markets are trading lower by 0.27 percent at $1248.1 per ounce.

 

Energy

Crude Oil

WTI oil prices rose by 1.3 percent on Tuesday to close at $48.4 per barrel after a severe disruption to Libyan oil supplies and as officials suggested OPEC and other producing countries could extend an output-cuts deal to the end of the year.

Armed factions have blocked production at the western Libyan oilfields of Sharara and Wafa, reducing output by 252,000 barrels per day (bpd), about a third, said a source at the National Oil Corp (NOC).

NOC has declared force majeure on crude loadings from those oilfields. Iranian Oil Minister Bijan Zanganeh said the deal between OPEC and non-OPEC producers to cut output and reduce the global crude glut is likely to be extended beyond June.

On the MCX, oil prices rose by 1.8 percent to close at Rs.3167 per barrel.

 

Outlook

Disruptions in Libya is supporting oil prices in the near term while the major fundamentals of demand and supply remains bearish , oil has to be traded with lot of caution.

On the MCX, oil prices are expected to trade higher today, international markets are trading higher by 0.45 percent at $48.59 per barrel.

 

Base Metals

LME base metals traded higher yesterday as global concerns on Trump’s ability to push through important economic reforms in the future eased. Also, favorable private economic indicators from China supported an upside

MCX base metals traded higher on Tuesday in line with international trends.

 

Copper

LME Copper prices recovered sharply off two week lows and jumped 2 percent to close at 5873/t, as the US economy gained momentum indicated by strong consumer confidence numbers, which jumped to more than 16-year high in March.

Also, the China Satellite Manufacturing Index rose to 51.8 from 51.1 in February, indicating factories are doing well, with one of the best readings in the past five years. Besides, private indicators showed Chinese sales manager sentiment and confidence of small- and medium-sized enterprises jumped to the highest in almost two years.

Further, Reuters’ sources said China's top copper smelters have agreed to an 11 percent cut in second-quarter treatment and refining fees, after disruptions at the world's two biggest copper mines curbed the global supply of raw material.

MCX copper prices traded higher by 1.6 percent yesterday to close at Rs.385.2 per kg on Tuesday.

 

Outlook

LME Copper prices are trading flat currently at $5873/t. Prices are expected to trade sideways today as global investors will cautiously watch President Trump’s speech due tonight, for his views on global trade although optimism regarding the US and Chinese economy will provide a cushion.

We expect MCX copper prices to trade sideways today in line with international trends. 

 

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