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Thursday, 30 August 2018

MCX MORNING FUNDAMENTAL NEWS AND UPDATES 30-Aug-2018



BULLION:-

Gold prices inched lower in the morning session amid expectations of higher U.S. interest rates, but managed to hold above a key psychological level of $1,200 which acted as a strong support. Spot gold was down 0.2 percent at $1,203.86 an ounce at the time of writing, after rising nearly 0.5 percent in the previous session. U.S. gold futures were down 0.1 percent at $1,209.90 an ounce. Spot gold has been trading in an $8 range for the past two sessions, with investors keenly watching the $1,200 level after the metal broke below that and hit a 1-1/2-year low of $1,159.96 early this month. Data showing a higher-than-expected annualized growth in second-quarter U.S. gross domestic product cemented expectations for a rate hike next month, with a 96 percent probability, according to Fed funds futures. Higher rates dent the appeal of noninterest-yielding gold, boosting the dollar in which the yellow metal is priced. The dollar index against a basket of six major currencies stayed above a four-week low of 94.434 hit on Tuesday. The greenback has been on the defensive this week with safe-haven demand for the currency diminishing in the wake of improving risk sentiment in broader markets following promising NAFTA negotiations. Gold prices are heading for a fifth straight monthly fall, which would make it the precious metal’s longest losing streak since early 2013. The metal has declined about 7.4 percent so far this year amid international trade disputes and the Turkish currency crisis, with investors preferring the dollar as a safe haven.

METALS:-

London aluminium prices fell for the first time in six sessions in early Asian trade on Thursday, after U.S. President Donald Trump allowed relief on aluminium import quotas from Argentina. Trump, who put in place tariffs on steel and aluminium imports in March, signed proclamations allowing relief from the quotas on steel from South Korea, Brazil and Argentina and on aluminium from Argentina, the U.S. Commerce Department said in a statement on Wednesday. Three-month aluminium on the London Metal Exchange fell 0.7 percent to $2,157 a tonne, after jumping 1.8 percent in the previous session. It hit a two-month high of $2,178 and has climbed for five straight days on rising input costs for smelters. Copper prices have recovered from a recent rout, but the possibility of the trade dispute between Washington and Beijing escalating and its potential to crimp demand in China, the world's top consumer, is expected to cap gains. Striking workers at state-owned Codelco's Andina copper mine have rejected their employers' latest contract offer, the company and union said on Wednesday.

ENERGY:-

Oil prices inched up on Thursday, extending solid gains from the previous session on a fall in U.S. crude inventories and expected disruptions to supply from Iran and Venezuela. U.S. West Texas Intermediate (WTI) crude futures were up 14 cents at $69.65 a barrel. The rises came after crude hit multi-week highs during the previous session. U.S. commercial crude inventories fell by 2.6 million barrels in the week to Aug. 24, to 405.79 million barrels. U.S. production was flat from the previous week’s record 11 million barrels per day (bpd). The Organization of the Petroleum Exporting Countries (OPEC), of which Iran is the third biggest producer, will discuss in December whether it can compensate for a sudden drop in Iranian oil supply after U.S sanctions against Tehran start in November, the head of Iraq’s state-oil marketer SOMO, Alaa al-Yasiri, said on Wednesday. Iran’s August crude oil exports will likely drop to just over 2 million bpd, versus a peak of 3.1 million bpd in April, as importers bow to American pressure to cut orders. The International Energy Agency (IEA) warned of a tightening market toward the end of the year, due to a combination of supply concerns, such as Iran and also Venezuela, and strong demand especially in Asia.



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