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CAPITALSTARS – MCX COMMODITY GOLD, SILVER, COPPER, CRUDE OIL NEWS UPDATE : 11 NOVEMBER 2020

MCX COMMODITY DAILY UPDATES

Precious Metals Preview:

download (19)Gold Sees Supportive Action.

Gold saw some stability in last session as buying emerged in the metal after the mega crash on Monday. COMEX Gold slumped as Pfizer and BioNTech stated late-stage trial data showed Covid vaccine is more than 90% effective in preventing infection. Gold tested a near three and half month intraday low under $1850 per ounce before some witnessing some support. The metal edged up further as local retail prices moved back towards Rs 50000 per 10 grams, triggering hopes of a return in retail buying as Diwali approached. A sharp drop in fresh Covid-19 cases also worked in favor of the metal and the commodity currently trades at $1877 per ounce, up slightly on the day. MCX Gold futures closed at Rs 50449 per 10 grams, up 1.41% on the day. Demand for gold loans in India, both through banks and non-banking financial companies (NBFCs), has grown in response to the economic impact of the COVID-19 pandemic. As a result, outstanding organised gold loans are expected to grow to INR 4,051bn (US$55.2bn) in 2021.

Energy Preview:

crude-oil-price-compressedCrude Hits Three Week High, EIA Says Brent Will Average $41 Per Barrel In 2021.

WTI Crude oil futures stayed well supported, hitting around three week high near $42 per barrel. MCX Crude also surged 1.80% to close at Rs 3055 per barrel. Energy Information Administration (EIA) noted yesterday that Brent crude oil spot prices averaged $40 per barrel (b) in October, down $1/b from the average in September. The EIA expects global oil inventories to continue falling in the coming months. However, EIA expects high global oil inventory levels and surplus crude oil production capacity will limit upward pressure on oil prices and that Brent prices will remain near $40/b through the end of 2020. EIA expects that as global oil demand rises, forecast inventory draws in 2021 will cause some upward oil price pressures. EIA forecasts Brent crude oil prices will average $47/b in 2021. EIA estimates that an average of 95.3 million barrels per day (b/d) of petroleum and liquid fuels was consumed globally in October. Liquid fuels consumption was down 5.9 million b/d from October 2019, but it was up from both the third-quarter 2020 average of 94.1 million b/d and the second-quarter 2020 average of 85.3 million b/d. EIA forecasts that global consumption of petroleum and liquid fuels will average 92.9 million b/d for all of 2020, down by 8.6 million b/d from 2019, before increasing by 5.9 million b/d in 2021.

Base Metals Preview:

shutterstock_546669673-minCopper Sees Stable Action.

COMEX Copper saw choppy moves. Sentiments were mixed for US equities on Tuesday after previous session’s vertical rise. Tech stocks saw some selling pressure. COMEX Copper lingers around $3.16 per pound, up 0.21% on the day. MCX Copper futures closed at Rs 535.70 per kg, up 0.17% on the day. Economic cues were mixed and traders remained focused on the trends in US dollar index which tilted slightly lower after Monday’s spurt.
The US workers will need to upgrade their skills if the US economy is to continue growing and it’s urgent that the government provide incentives for retraining, Federal Reserve Bank of Philadelphia President Patrick Harker said. Consumer prices in China rose around 0.5% on year in October, the National Bureau of Statistics said on Tuesday. This followed a 1.7% reading in last month. On a monthly basis, consumer prices sank 0.3%. The Chinese producer prices were down 2.1% on year – unchanged from the previous month.
UK retail sales jumped in October. Total retail sales grew 4.9% on a yearly basis in October and the like-for-like sales advanced 5.2%. The UK unemployment rate surged in the third quarter and redundancies reached a record high as firms reduced staffing after the government scaled back the furlough scheme, which was extended this month till March-end next year. Data from the Office for National Statistics showed that the ILO jobless rate rose by 0.7 percentage points from the previous quarter to 4.8%. A measure of the public assessment of the Japanese economy increased further in October, survey data from the Cabinet Office showed on Tuesday. The current conditions index of the Economy Watchers’ Survey, which measures the current situation of the economy, edged up to 49.1 in October from 48.3 in the previous month.



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