BULLION - MCX Gold and Silver may note mixed trade in line with international market but selling could be seen at higher levels. COMEX gold trades in a narrow range near $1315/oz after yesterday�s minor 0.1% decline. Gold trades in a range as market players await more clarity in US-China trade talks and US government shutdown. US-China trade talks are continuing today however news sources reported that both sides remained deadlocked on key issues. If there are no signs of a deal, safe haven demand for gold may rise however it will also push US dollar higher limiting gains in gold. The US House and Senate on Thursday approved a spending bill aimed at averting a government shutdown and sent it to President Donald Trump. It is likely that President Trump may approve the bill to avert another shutdown and this could lend support to US dollar. Amid other factors, gold remains supported by central bank buying, Fed�s dovish stance, disappointing US economic data and Brexit uncertainty. Prime Minister Theresa May lost another round of Brexit voting in Parliament. The divide in British Parliament will make it difficult for UK Prime Minister to renegotiate the Brexit deal with EU. US retail sales stumbled 1.2% in December, the largest decline since September 2009. ETF outflows however show weaker investor interest. Gold holdings with SPCR ETF were unchanged at 796.854 tonnes yesterday, lowest since Jan.8. Gold has witnessed listless trade in last few days and this will continue unless there is clarity on major issues. We however may see selling at higher levels if US dollar manages to hold its gains.
ENERGY- Crude Oil- MCX Crude Oil may note some gains tracking cues from international exchange however upside is limited. NYMEX crude trades higher above $54 per barrel after a 0.9% gain yesterday. Crude trades higher supported by tightening supply outlook amid OPEC�s production cut deal and supply concerns relating to Venezuela. Saudi has indicated willingness to extend production cuts further next month. Meanwhile, Russia's Energy Minister said it would accelerate output cuts agreed to in a deal. Russia expects production at about 11.3 million barrels a day as against target of 11.191 mn bpd. However, weighing on crude price is higher US production and demand concerns amid weakening outlook for major economies. Disappointing US economic data released yesterday rekindled worries about health of the economy and brought a halt to recent gains in US equity market. Chinese inflation data released today also disappointed. Equity markets have turned choppy also as market players awaits more clarity on US-China trade deal and US government shutdown. US-China trade talks are continuing today however news sources reported that both sides remained deadlocked on key issues. The US House and Senate on Thursday approved a spending bill aimed at averting a government shutdown and sent it to President Donald Trump. Crude has witnessed a sharp rebound in last few sessions however the gains will be challenged by concerns about health of US and Chinese economy.
Natural Gas- MCX Natural gas may trade with a negative bias in line with international market. NYMEX natural gas trades weaker near $2.56/mmBtu after a 0.1% decline yesterday. Weighing on gas price is EIA weekly report which noted a 78 Bcf decline in US natural gas stocks as against expectations of 85 Bcf decline and 5-year average decline of 160 Bcf. A smaller than average drop in gas stocks has reduced the deficit to some extent. However, supporting gas price is forecast of cold weather in US which will increase heating demand. Natural gas may remain under pressure amid easing supply concerns however we do not expect a sustained drop and price could take support near $2.5/mmBtu levels. Focus today will be on US weather and weekly rig activity report.
BASE METAL - Base metals on LME trade sideways to lower after noting volatile movement yesterday. LME Lead was the best performer with 0.8% gains followed by modest 0.2% gains in Copper prices. In other metals however Nickel ended 1.65% lower while Aluminium and Zinc closed 0.5% and 0.2% lower respectively. Nickel can take support near 865 and can recover towards 885. Aluminum prices may find some support near 130.
Financial Advisory Company in Indore, Stock Advisory Company in Indore, Equity Tips, FreeTrading Tips , MCX Tips, sebi registered advisory company, Intraday stock tips, Free commodity tips
No comments:
Post a Comment