Published on 24/04/2017 5:22:22 PM | Source: Angel Commodities Pvt Ltd

We expect gold prices to trade higher - Angel Commodities

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


Gold

* Last week, Spot gold prices declined by 0.3 percent, to close at $1284/oz, while MCX gold prices closed flat at Rs.29418 per 10 gms.

* Moves were muted as markets awaited the outcome of the looming French presidential election. Two candidates, Marine Li Pen and Macron Emmanuel are in the lead now. Now the second round result will be on May 8.

* Holdings of the world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, rose 11.8 tonnes on Wednesday for their biggest one-day inflow since September, data from the fund showed.

* A run of disappointing U.S. economic data and doubts the Trump administration will progress with tax cuts have quelled expectations of faster inflation, while the Federal Reserve said in its Beige Book that the U.S. economy expanded at a modest-to-moderate pace between mid-February and the end of March.

* The dollar index fell to a three-week low on disappointing U.S. housing starts data and nerves over trade talks between the United States and Japan, while Britain's pound soared after Prime Minister Theresa May called for a snap general election.

* From a week perspective, we expect gold prices to trade higher towards $1300 mark while MCX gold prices will trade higher towards Rs.30000 mark.

 

Crude Oil

* WTI oil prices declined by 6.7 percent to close at $49.6 per barrel , as investors weighed rising U.S. production against geopolitical uncertainties and comments from leading Gulf oil producers that an extension to OPEC-led supply cuts was likely.

* OPEC members Saudi Arabia and Kuwait signaled that the Organization of the Petroleum Exporting Countries and other producers, including Russia, would likely extend their oil output cut beyond June.

* U.S. crude stocks fell 1 million barrels in the latest week, the U.S. Energy Information Administration said, a smaller draw than expected. Gasoline stocks posted a counter-seasonal build of 1.5 million barrels, despite heavier refining activity.

* The surprise gasoline build, along with an increase in U.S. production and imports from OPEC nations, pressured prices. Weekly imports from OPEC nations rose by 900,000 barrels, the EIA said.

* The oil market has been caught in a tug-of-war, with OPEC production cuts supporting prices while signs of rising U.S. production have pressured crude on concerns about a glut.

* From a weekly perspective, we expect oil prices to trade lower towards $48 while MCX crude oil prices can go lower towards Rs.3120 mark.

 

Copper

* Last week, LME Copper prices fell 1.2 percent to $5623/t, as Freeport McMoRan Inc received preliminary approval to resume copper concentrate exports from its Indonesian operation and hopes to lodge an application for an export permit this week.

* Also, National Statistics Bureau data showed China’s refined copper output rose 8.5 percent in March from a year ago to 764,000 tonnes, its highest since at least December 2015.

* Further, UK Prime minister May stunned the markets by demanding a snap general election on 8 June that she hopes will turn her party’s clear lead in the opinion polls into a healthy parliamentary majority.

* However, sharp downside was restricted as robust Chinese property markets provided a cushion. Newhome prices gained last month in 62 of the 70 cities tracked by the government, compared with 56 in February.

* Besides, IMF boosted Global Growth forecast to 3.5% despite trade tensions and looming geopolitical threats.

* MCX Copper prices traded lower by 0.9 percent to close at Rs.363/kg on Friday.

* From a week perspective, we expect MCX Copper prices to trade lower towards Rs.355/kg mark while LME Copper prices will trade lower towards $5530 per tonne as recent leverage crackdown measures by the Chinese government will restrict risk appetite in the biggest consumer.

 

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