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Precious Metals Preview:

download (19)Gold Accelerates After Breaking Above $1900 Per Ounce.

COMEX Gold futures extended a break above $1900 per ounce mark as the US Presidential Election looked headed for a nail biting finish. Finally, the US has chosen Democrat Joe Biden as its 46th president after a closely fought battle. This will keep global markets volatile in near term after recent surge in equities. Weakness in the US dollar also boosted the metal and ETF buying stayed strong. COMEX Gold futures hit a seven week high of $1961 per ounce. MCX Gold futures also jumped above Rs 52000 per 10 grams with weakness in the US dollar boosting the metal further. The World Gold Council (WGC) noted that Gold-backed ETFs and similar products (gold ETFs) recorded their 11th consecutive month of net inflows during October, matching the record number of positive monthly flows set in April 2006.
Gold ETF holdings increased by 20.3 tonnes (t), +US$1.4bn or 0.6% of assets under management (AUM), during the month as the gold price moved mostly sideways, finishing slightly below US$1,900/oz. Net inflows of 1,022t (US$57.1bn) in 2020, so far, have driven global gold ETF holdings to a new all-time high of 3,899t (US$235bn in AUM). European funds drove nearly all net inflows as holdings in European funds increased by 20.2t (US$1.4bn, 1.4% AUM). North American funds had inflows of 1.8t (US$166mn, 0.1%). Funds listed in Asia saw holdings rise by 1.1t (US$76mn, 1.0%). Other regions had outflows flows of 2.8t (US$144mn, 3.8%).

Energy Preview:

crude-oil-price-compressedCrude Slides Sharply On MCX.

WTI Crude oil extended a rebound from recent five month lows last week as energy major Saudi Aramco noted that the third quarter of 2020 saw early signs of a recovery in global energy markets as some governments across the world eased COVID19 related restrictions, providing stimulus for improved economic activity. However, a renewed wave of lockdowns in Europe and persistently high cases count globally in first week of November capped the upside and the commodity dropped sharply after approaching near $40 per barrel mark and took oil near $37 per barrel. MCX Crude oil futures also turned back after hitting near Rs 2900 per barrel. The counter shed around 3.70% in a single session.
Meanwhile, the US crude oil stocks fell sharply last week, the Energy Information Administration (EIA) said on Wednesday. Crude inventories fell by 8 million barrels in the week to October 30th. US Crude production fell 600,000 barrels per day to 10.5 million bpd last week, the EIA said. Crude oil stocks at the Cushing, Oklahoma, delivery hub for US crude futures rose by 936,000 barrels, EIA said. US Refinery crude runs rose by 164,000 bpd and refinery utilization rates rose by 0.7 percentage point. Gasoline stocks rose by 1.5 million barrels while Distillate stockpiles, which include diesel and heating oil, fell by 1.6 million barrels.

Base Metals Preview:

shutterstock_546669673-minCOMEX Copper Hits Two Week High.

COMEX Copper futures stayed supported in last session as global equities rallied and traders focused on firm Chinese economic cues. The red metal hit a two week high of $3.17 per pound. MCX Copper also managed to break above Rs 530 per kg. Global factory output rose at the fastest rate for two and a half years in October, signalling a strong start to the fourth quarter that builds on a recovery seen in the third quarter. Expansion was seen across the world’s major markets, led by the Eurozone, with the exception of a decline in Japan, though even here the downturn eased. Of particular note, Asia excluding China and Japan – which has lagged the global recovery- saw output growth hit the highest since April 2011. Although firms remain optimistic that business conditions will improve further one year from now, the nearer-term stays highly uncertain for many companies amid rising COVID-19 infection rates.

Investment & Trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.

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