Evening Track : Gold futures tick up above $2,700 ahead of U.S. inflation data by Kotak Securities Ltd
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
Comex Gold futures traded above $2,700 an ounce on reports that China's central bank resumed gold purchases after a seven-month. The market is largely betting on a quarter-point interest rate cut by the Federal Reserve at its upcoming meeting. Lower interest rates typically benefit gold as it doesn't pay interest. However, any unexpected signs of inflationary pressure could dampen this bullish sentiment. Additionally, geopolitical tensions and the resumption of gold purchases by China's central bank are providing further support to gold prices.
WTI Crude oil prices surged above $69.3 per barrel ahead of crucial economic indicators moreover investors await the US CPI data for November, which will influence the Federal Reserve's upcoming monetary policy decisions. Additionally, the Biden administration's potential new sanctions on Russian oil trade could tighten global supply and further elevate prices. Despite recent market volatility, the US EIA's revised forecast for a small deficit next year suggests a tighter market outlook.
LME Copper futures declined by 0.50% to trade near $9,167 per tons on Wednesday, followed a broader downturn in base metal prices, triggered by the Chinese yuan's sharp devaluation in late Asian trading. Concerns about potential Chinese currency devaluation next year, in response to US tariff threats, weighed on the market. A weaker yuan could make Chinese copper exports less expensive, impacting global prices. Despite recent pledges of economic stimulus, lingering skepticism about their implementation further pressured industrial metals. While November's manufacturing data showed expansion, particularly for domestic-focused companies, it wasn't enough to offset the negative sentiment.
European natural gas prices saw a decline of up to 1.4% on Wednesday, influenced by concerns over the impending expiration of a key RussiaUkraine transit agreement and ongoing maintenance in Norway. While milder weather forecasts offer some respite, unplanned maintenance in Norway, particularly at the Kollsnes processing plant and Asgard field, poses additional risks to the region's already strained supply balance. With storage levels below the
Above views are of the author and not of the website kindly read disclaimer
