Commodity Research Evening Track by Kotak Securities Ltd
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Gold gain ahead of US jobs data
Comex Gold prices gain as it trade near $2,547 an ounce, as investors eagerly awaited the release of crucial U.S. economic data later in the evening.. Additionally, the weaker dollar has provided further support to gold prices, as the precious metal is typically priced in U.S. currency. The recent report indicating a significant slowdown in job growth further reinforced expectations that the Federal Reserve would soon begin easing its monetary policy. Market are divided between a 25 basis point or a 50 basis point reduction.
WTI Crude Oil trading positive in todays’ session to trade near $69.50 but set for a significant weekly decline, fueled by concerns over weak demand and abundant supply. OPEC+, a coalition of major oil-producing nations, has decided to delay a planned increase in output by two months. Demand concerns from key consumers, such as China, and rising supply from non-OPEC sources have contributed to the price decline. Disruptions to Libyan supplies have provided some support, but overall, oil prices have been under pressure.
LME base metals are trading mixed with industrial users stepping in to buy after recent selling pressure but global economic concerns, particularly worries about China's economy, are limiting gains. LME copper are trading higher by 1.50% near $9,092 per ton as weaker US dollar has provided some support to copper prices. The overall base metal demand outlook remains weak, especially in China, where factory activity has slowed. LME Zinc, Aluminium and Lead is down about 2% , 0.75% and 1.24% respevtivelyto trade near $2,737 while Aluminium is trading positive.
European Natural gas prices climbed on Friday as Egypt announced plans to import 20 cargoes of liquefied natural gas (LNG) starting in October. This marks a shift from recent years and has traders concerned about Europe's supply balance. With increased competition for LNG from other regions, Europe may receive less fuel than needed, especially during the upcoming winter. Although the region is currently well-supplied, it heavily relies on global flows to compensate for reduced Russian pipeline deliveries.
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