Published on 17/05/2017 10:41:19 AM | Source: Sushil Finance
We expect silver prices to trade positive - Sushil Finance
Gold prices extended gains for a fourth day on Tuesday as political troubles and weaker-than-expected housing data in the United States dented the dollar while a more upbeat scenario in Europe lifted the euro.
The dollar index slipped to the weakest in more than six months after two U.S. officials said President Donald Trump disclosed highly classified information to Russia's foreign minister about a planned Islamic State operation.
Investors regarded Trump's difficulties as another obstacle to planned U.S. tax cuts and infrastructure spending that had boosted the dollar since the November election.
Gold is used as an alternative investment during times of political and financial uncertainty.
Also pressuring the dollar, the Commerce Department said housing starts dropped to the lowest level in five months.
We expect gold prices to trade positive on the back of short covering after drop in prices.
Silver rose 1.3 percent at $16.81 an ounce after tapping $16.86, the highest since May 3.
We expect silver prices to trade positive on the back of short covering after drop in prices.
Oil prices settled little changed on Tuesday after several OPEC members voiced support for prolonging supply cuts through March 2018 to reduce a global crude glut.
Crude prices dipped later in post-settlement trade after data from the American Petroleum Institute showed an unexpected build in crude and distillate products inventories. Forecasters had expected another draw in U.S. crude stocks.
Prices have rebounded about 10 percent since hitting five-month lows 11 days ago. Members of the Organization of the Petroleum Exporting Countries have stated their intentions to keep supply cuts going through next year. The market has grown skeptical, as inventories have been drawing down slowly even after OPEC and several big non-OPEC producers agreed at the end of November to cut production 1.8 million barrels a day in the first half of 2017.
Officials in Kuwait, Iraq, Iran and Venezuela voiced support for extending the crude output cut. The meeting to decide on the output cut extension has been set for May 25.
Russian Energy Minister Alexander Novak said the proposed extension of output cuts aimed to bring global commercial oil inventories down to the five-year average and stabilize the market.
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.
Lead hit a four-month low and zinc sank to its weakest in nearly a month on Tuesday as China's latest moves to curb shadow banking and risky investment dented the growth outlook in the world's top metals consumer.
Late on Monday, China's banking regulator tightened disclosure rules on lenders' wealth management products. Separately, the China Banking Regulatory Commission unveiled plans to publish a flurry of regulations later this year to control financial risks.
We expect base metal prices likely to trade volatile on the back of mixed fundamentals.
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