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On Thursday, spot gold prices ended marginally higher by 0.28 percent to close at $1563 per ounce. The coronavirus outbreak in China led to about 25 deaths and the reported cases of infection confirmed were over 830. Hundreds of millions will be visiting China to celebrate the China's Lunar New Year which might further spread the virus.
The markets expect that newly found virus which has spread in various nations might impact the global economy which supported the safe haven asset, Gold.
However, the world health organisation (WHO) didn’t feel the urge to declare a global emergency over the virus outbreak which limited the uptrend in prices.
U.S. Treasury Secretary Steve Mnuchin stated that the fresh trade deals with China, Mexico and Canada could help the U.S. economy and helped the U.S. Dollar recover in turn pressurizing the yellow metal prices.
On Thursday, Spot silver prices ended lower by 0.19 percent to close at $17.8 per ounce whereas the MCX silver prices ended marginally higher by 0.32 percent to close at Rs.46380 per kg.
The new virus outbreak which has spread to various nations might continue to weigh on the market sentiments and Support Gold prices. Investors wait for the first U.S. Federal Meeting which is due next week.
On the MCX, gold prices are expected to trade sideways today
On Thursday, WTI Crude prices ended significantly lower by 2.03 percent to close at $56.7 per barrel. Prices continue to fall significantly as the markets expected that the newly identified respiratory virus called coronavirus from China might dent the demand for fuel.
As per reports from the EIA, U.S. Crude inventory levels fell by 405,000 barrels last week which was less than market expectations of a dip of 1 million barrel.
Moreover, prices were further undermined after the Dollar recovered considering the growth prospects for the U.S. economy. Even the interim trade deal between U.S. & China couldn’t support the prices as most of the tariffs are still on the table.
Demand concerns arising from China amid appreciating Dollar might continue to weigh on the Crude oil prices
On the MCX, oil prices are expected to trade sideways today
On Thursday, base metal prices on the LME ended negative with Zinc being the highest loser amongst the pack. Prices were pressurized after the new virus outbreak in China could hit economic growth in the world's top metals consumer, China and dent the demand prospects for industrial metals.
China’s steel futures continue to decline as the virus outbreak led to multiple deaths and pointing towards weakening of their economy. Even the prices of the ingredients used for steel production like Zinc and Nickel were pressurized.
The interim trade deal between U.S. & China was the first step to end the prolonged trade and tariff war which underpinned the demand prospects for industrial metals. However, with most of the tariffs still on the table the demand prospects for the industrial metals still remain under cloud.
On Thursday, LME Copper prices ended lower by 0.88 percent to close at $6106.0 as the virus outbreak raised fears chances of recovery in China after a protracted downfall.
Worries that the coronavirus could impact the Chinese economy might weigh on the industrial metal prices. Copper prices might find some support as production closure in Africa might raise supply concerns.
On the MCX, Copper prices are expected to trade lower today.
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