GIVE MISS CALL ON :- +91 99774 99927

CAPITALSTARS – MCX COMMODITY EVENING MARKET NEWS UPDATES – 06 DEC 2018

CS MCX Commodity Evening mkt updates

BULLION:-

Gold prices edged lower on Thursday in range-bound trade as investors booked profits and the dollar strengthened, while palladium fell from a record high hit in the previous session. “Gold has been near key levels of $1,240, so there might be some technical-level profit-taking,” said Hareesh V, head of commodity research at Geojit Financial Services in Kochi, India. A meeting of the Organization of the Petroleum Exporting Countries (OPEC) and U.S. nonfarm payroll data expected on Friday are keeping gold investors on guard, he said. U.S. Federal Reserve policymakers are to gather at a Dec. 18-19 meeting, at which the central bank is widely expected to raise interest rates. “Although a rate hike is already priced in, markets will be closely watching the meeting for clues on rate-hike timings in 2019,” said Lukman Otunuga, a research analyst at FXTM, adding that: “if the meeting echoes a similar message to (Chairman Jerome) Powell’s dovish shift, gold has the potential to shine into 2019.” The dollar held steady as a spike in risk aversion pressured equities and U.S. Treasury yields. The spread between the two-year and five-year Treasury yields inverted this week and the two-year/10-year spread was at its flattest in more than a decade amid a sharp fall in long-term rates. “A yield curve inversion indicates higher borrowing cost in short term, so for safe-haven assets in the longer run it’s going to be very positive,” said Benjamin Lu, a commodities analyst with Phillip Futures in Singapore. Spot gold may test a resistance at $1,245 per ounce, a break above which could lead to a gain into a range of $1,253-$1,258, according to Reuters technical analyst Wang Tao. palladium prices stayed near gold’s after outshining the yellow metal for the first time since 2002 on Wednesday, with prices soaring by around 50 percent in less than four months to record levels. The market now awaits Friday’s U.S. nonfarm payrolls data for November, which is expected to show unemployment remains at 3.7 percent.

ENERGY:-

Oil prices dipped on Thursday as stock markets slid and as traders eyed an OPEC meeting expected to result in a supply cut aimed at draining a glut that has pulled down crude by 30 percent since October The Organisation of the Petroleum Exporting Countries (OPEC) is meeting at its headquarters in Vienna, Austria, on Thursday to decide its production policy in coordination with non-OPEC producer Russia. Expectations are for a supply cut between OPEC and Russia to be agreed between 1 and 1.4 million barrels per day (bpd). by Saudi Arabia, OPEC’s crude oil production PRODN-TOTAL has risen by 4.1 percent since mid-2018, to 33.31 million bpd. Oil output from the world’s biggest producers – OPEC, Russia and the United States – has increased by a 3.3 million bpd since the end of 2017, to 56.38 million bpd, meeting almost 60 percent of global consumption. PRODN-TOTAL C-RU-OUT C-OUT-T-EIA The increase alone is equivalent to the output of major OPEC producer United Arab Emirates. Traders said oil prices were also being weighed down by weak global financial markets, which saw stock markets tumble on Thursday. bank said in its Global Outlook published on Thursday that “investors need to lower their expectations” and that “2019 should be a period of lower returns and higher volatility”. The British bank said that it expected “the global economy to slow over the next several quarters” although it added that “not one major economy is near recession.” The financial downturn has also hit oil markets hard. Since early October, crude oil has lost around 30 percent of its value amid surging supply and fears that an economic downturn will erode fuel demand.

CapitalStars Provides  Free Trial To Our Client…

Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future cperformance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647.

Leave a Reply

Checking...

Ouch! There was a server error.
Retry »

Sending message...

FREE TRIAL REQUEST


CapitalStars FORUM