US benchmark 10 -year treasury yields fell by 0.12% to 1.45 - ICICI Direct
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Bullion Outlook
* Comex gold prices surged by 1.47% on Friday as US Federal Reserve and Bank of England indicated that they were in no rush to raise interest rates. However, sharp gains were capped on improved job data from the US
* US benchmark 10 -year treasury yields fell by 0.12% to 1.45, reducing the opportunity cost of holding non -yielding bullion
* US nonfarm payrolls increased by 531,000 jobs in October 2021, highest in three months and above the market forecasts of 450,000
* Gold prices are expected to trade with a positive bias on the back of higher inflation and fall in US treasury yields. Further, concerns over rise in Coronavirus cases in China and European region may support gold prices on the higher side
Base Metal Outlook
* Aluminium declined by 2.2% on Friday as rising coal output in China eased worries over disruptions of metal production. However, sharp downside was prevented on weakness in the dollar
* On-warrant inventories of aluminium available to the market in LMEregistered warehouses eased to 621,850 tonnes, near its lowest since 2018
* China auctioned off another 30,000 tonnes of copper from its state reserves in October, slightly reducing the demand for imports
* Aluminium metal prices are expected to trade with a negative bias as rising coal output in China eased worries over disruptions and demand concerns from China. However, sharp downside may be prevented amid decline in LME inventories
Energy Outlook
* Crude oil prices surged 2.99% on Friday mainly supported by renewed supply concerns after Opec+ producers rebuffed a US call to accelerate output increases even as demand nears pre-pandemic levels. Further, upbeat job data from US supported prices
* China's crude oil imports plunged in October to the lowest since September 2018, as large state-owned refiners withheld purchases because of rising prices
* According to the Baker Hughes report released on Friday, US oil rigs increased six to 450 this week, highest since April 2020 while gas rigs were unchanged at 100
* Crude oil is expected to trade with a mixed bias as Opec+ maintained its modest pace of increase in crude oil output. However, sharp upside may be prevented on weaker demand from China
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