Published on 16/03/2017 11:26:49 AM | Source: Angel Commodities Pvt Ltd

We expect gold prices to trade higher - Angel Commodities

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


Bullion

Gold

On Wednesday, spot gold prices rose by 1.7 percent to close at $1218.7 per ounce as prices rose to a one-week as the U.S. Federal Reserve called for gradual monetary tightening after raising interest rates by an expected 25 basis points for the second time in three months.

The central bank said in its policy statement that further hikes would only be "gradual," with officials sticking to their outlook for two more rate hikes this year and three more in 2018.

Investors were also focusing on Wednesday's elections in the Netherlands, which have been boosting gold's safe-haven appeal. Some said looming Brexit talks also added to the geopolitical risk.

On the MCX, gold prices declined marginally by 0.32 percent to close at Rs.27985 per 10 gms.

 

Silver

Spot silver prices rose by 2.7 percent on Wednesday to close at $17.3 per ounce. The rise in silver prices is in line with rise in gold prices, besides, recovery in all the base metals also acted as a positive factor.

On the MCX, silver prices declined marginally by 0.09 percent to close at Rs.40045 per kg.

 

Outlook

We expect gold prices to trade higher today as international markets are trading positive by half a percent at $1225 per ounce although the US FED has done the rate hike for the second time, they said that further rate hikes will be gradual in nature.

On the MCX, gold prices are expected to trade higher today, in line with international trends.

 

Energy

Crude Oil

WTI oil prices rose by 2.4 percent on Wednesday to close at $48.9 per barrel as pricesclimbed for the first time in more than a week on a surprise drawdown in U.S. crude inventories and data from the International Energy Agency (IEA) suggesting OPEC cuts could create a crude deficit in the first half of 2017.

Oil prices extended earlier gains as the dollar fell to its lowest level in two weeks against a basket of currencies after the Federal Reserve increased interest rates as expected but did not signal a faster pace of monetary tightening this year.

On the MCX, oil prices rose by 1.3 percent to close at Rs.3178 per barrel.

 

Outlook

We expect oil prices to trade higher today continuing its positive momentum from the previous trading session. although oil inventories remains high in the US and Saudi Arabia seems to be pumping more oil in February.

On the MCX, oil prices are expected to trade higher today, international markets are trading higher by half a percent at $49.14 per barrel.

 

Base Metals

LME base metals traded mostly higher yesterday on account of bargain hunting at lower levels although investors keenly awaited the outcome of the FOMC meeting.

MCX base metals traded higher yesterday in line with international trends.

 

Copper

LME Copper prices gained 0.8 percent to close at $5864/t on Wednesday as weaker dollar ahead of the US rate decision supported prices. Besides, strike at the BHP Billiton’s Escondida mine is still on, after a third attempt to restart negotiations with management failed yesterday.

Also, strike at Cerro Verde, Peru's biggest copper mine, after a meeting between the union and management failed to resolve a dispute over labor demands, added to supply disruption concerns. This comes in addition to strikes at Grasberg in Indonesia.

Additionally, Chinese industrial production increased at a fasterthan-expected 6.3 percent pace in the first two months of the year, although retail sales surged lower than expected.

MCX copper prices traded higher by 0.3 percent to close at Rs.386.8 per kg on Wednesday.

 

Outlook

LME Copper prices are trading higher currently by 0.7 percent currently at $5905/t. Weaker dollar after an expected rate hike by the US Fed and reassurance by China that the economy is strong enough is supporting prices. Supply disruption concerns will act as a positive factor for copper prices in the near term.

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

 

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