Gold rose to a two-week high on Wednesday as political turmoil in the United States reduced expectations of aggressive interest rate rises this year, pushed down U.S. bond yields and drove the dollar to its lowest in six months.
Lower yields reduce the opportunity cost of holding non-yielding gold, while a weaker dollar makes bullion cheaper for non-U.S. investors. Higher interest rates would push yields up and likely boost the dollar.
Futures traders are pricing in a 66 percent chance of a June rate rise, down from around 90 percent earlier this month, according to CME's FedWatch Tool.
We expect gold prices to trade positive on the back of short covering after drop in prices.
Silver as up 0.6 percent at $16.92 an ounce.
We expect silver prices to trade positive on the back of short covering after drop in prices.
Oil prices settled at a two-week high on Wednesday after U.S crude inventories declined for the sixth straight week, a positive sign for markets ahead of next week's OPEC meeting, where major oil producers are expected to extend supply cuts.
The Organization of Oil Exporting Countries (OPEC) and other key producers will gather in Vienna on May 25 to decide whether to extend output cuts of 1.8 million bpd that started in the first half of 2017. Riyadh and Moscow say they should be extended until March 2018.
The EIA forecasts U.S. production to average nearly 10 million bpd by the end of 2018.
Libya also plans to restart production. In an interview with Reuters, the national oil company chairman said the company has returned to parts of the Sirte basin for the first time in more than two years.
We expect crude oil prices to trade negative on the back of profit booking after sharp up-move in prices.
We expect Natural gas prices to trade sideways on the back of short covering after drop in prices.
Nickel and zinc rebounded on Wednesday after steel prices jumped, while nickel also received a boost from news that output at a Canadian mine would be suspended.
Meanwhile, copper was knocked lower by a fresh influx of inventories into warehouses.
We expect base metal prices likely to trade volatile on the back of mixed fundamentals.
To Read Complete Report & Disclaimer Click Here
For more details refer – www.sushilfinance.com
For More Sushil Finance disclaimer at http://goo.gl/1sOHeV SEBI Registration No. INH000000867
Views express by all participants are for information & acadamic purpose only. Kindly read disclaimer before refering below views. Click Here For Disclaimer