Published on 29/06/2017 10:17:58 AM | Source: Sushil Finance
We expect Natural gas prices to trade positive - Sushil Finance
Gold prices rose on Wednesday as the dollar weakened for a second straight day following a global cyber attack and a delay to U.S. healthcare legislation that fueled doubts about President Donald Trump's ability to pass measures expected to boost the economy.
The dollar sank to its lowest level since November while the euro hit a one-year high after European Central Bank President Mario Draghi on Tuesday appeared to hint that stimulus could be trimmed this year, though sources later said he had been misinterpreted.
While the weak greenback was seen giving support to gold prices, rising yields on U.S. benchmark 10-year Treasury notes were seen preventing stronger gains.
We expect gold prices to trade sideways on the back of short covering after drop in prices.
Silver was up 0.9 percent at $16.81 an ounce.
We expect silver prices to trade positive on the back of short covering after drop in prices.
Oil futures climbed more than 1 percent on Wednesday to their highest in more than a week as buyers were encouraged by a small weekly decrease in U.S. production and shrugged off a surprise build in crude inventories in the world's top oil consumer.
The U.S. Energy Information Administration (EIA) said crude stocks rose 118,000 barrels last week, while weekly production declined 100,000 barrels per day (bpd) to 9.3 million bpd. That was the biggest decline in weekly output since July 2016.
Other analysts and traders noted the U.S. production decline last week was related to temporary factors like Tropical Storm Cindy in the Gulf of Mexico and maintenance work in Alaska that will likely be reversed in coming weeks.
U.S. output during the week ended June 16 reached almost 9.4 million bpd, the most since August 2015.
OPEC and the other producers, trying to reduce a crude glut, agreed in May to extend the supply cut through March 2018. But OPEC has exempted Nigeria and Libya from cutting output.
OPEC delegates have said they will not rush to cut crude output further or end the exemptions, although a meeting in Russia next month is likely to consider further steps to support the market.
We expect crude oil prices to trade sideways on the back of EIA Crude oil Inventory Data.
We expect Natural gas prices to trade positive on the back of favorable weather conditions.
Aluminium prices held near six-week lows on Thursday as the market focused on rising supplies and exports from top producer China, lower output costs and higher inventories.
China's aluminium exports are rising. In May the country exported 460,000 tonnes of unwrought aluminium and aluminium products, up from April's 430,000 tonnes.
China's aluminium production last year accounted for 55 percent of the global total, estimated at nearly 59 million tonnes, according to International Aluminium Institute. Its output has been rising since March.
Zinc closed up 2.3 percent at $2,700 a tonne. Earlier it touched $2,710, its highest since April 7, on falling stocks in LME warehouses, which are down nearly 30 percent since January to 304,000 tonnes, and on cancelled warrants -- metal earmarked for delivery -- at above 65 percent.
We expect base metal prices likely to trade volatile on the back of mixed fundamentals.
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