BULLION:-
Gold prices headed lower on Friday as a stronger dollar
dented demand for the precious metal, but it was still on track for its first
weekly climb in four as investors reentered their attention on the Federal
Reserve. The fall in dollar this week came as
safe-haven demand for the U.S. currency ebbed amid continued relief that fresh
U.S. and Chinese tariffs on reciprocal imports were less harsh than originally
feared. On Monday, the U.S. slapped tariffs of 10% on $200
billion in Chinese goods, before they rise to 25% by the end of 2018, rather
than an outright 25%.The precious metal has dropped more than 10% from a peak
in April as escalating U.S.-China trade dispute and rising U.S. interest rates
were cited as catalysts for the selling in gold.
METALS:-
As longs aggressively added their positions, the SHFE 1811
contract jumped past 50,000 yuan/mt, a psychologically-significant level, to an
intraday high of 50,020 yuan/mt before it edged down to close at 49,740
yuan/mt. Open interest for the October contract shrank 8,024 lots while that
for January-March contracts grew 14,198 lots. The spread between October and
November contract exceeded 300 yuan/mt. On the technical front, MACD red line
extended further, suggesting an open upward track for the contract. The SHFE
1811 contract climbed past the 20-day moving average to 105,220 yuan/mt on a
substantial buildup of long positions. The contract then reversed little gains
and closed at 104,870 yuan/mt. On the technical front, KDJ lines expanded
upwards and MACD red line lengthened.
ENERGY:-
Crude oil markets were all over the place on Friday, based upon a lot
of different moving pieces. Not the least of which would have been a searching
US dollar.
The market does want to go higher but the US dollar strengthening based
upon the noise and the United Kingdom has put more bearish pressure on this.
Overall, I think that the market will be paying attention to quadruple witching
during the session as well, so quite frankly I would pay more attention to the
longer-term trend of going higher. The US dollar is the counterbalance, so
pay attention to that. The $77.50 level underneath will be supported as well,
but at this point I think that oil traders have decided that they want to go
higher. If we break above the $80 level, it’s likely that we will then go to
the $82.50 level next. Expect volatility regardless of what happens, so be very
cautious about your position size going into this next couple of days.
Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647.
0 comments:
Post a Comment