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CAPITALSTARS – MCX COMMODITY MORNING MARKET NEWS UPDATES – 9 JAN 2019

Morning-Commodities-Market-updates-1

BULLION:

Bullion counter may witness range bound movement as gold held steady on Wednesday as a surge in risk appetite on hopes of a Sino-U.S. trade deal offset support from expectations of a pause in U.S. Federal Reserve rate hikes. The United States and China will continue trade talks in Beijing for an unscheduled third day, a member of the U.S. delegation said on Tuesday amid signs of progress on issues including purchases of U.S. farm and energy commodities and increased access to China’s markets. Gold can find support near 31500 in MCX while upside will be capped near 31850. Silver can find support near 39100 and upside will be capped near 39550. Gold prices have gained about 11 percent since hitting a more than 1-1/2-year low in mid-August due to tumultuous stock markets and a slightly weaker dollar. British Prime Minister Theresa May’s government suffered a defeat in parliament on Tuesday when lawmakers who oppose leaving the European Union without a deal won a vote on creating a fresh obstacle to a no-deal Brexit.

METALS:

Base metals prices may witness lower level buying as most base metals rose in early Asian trade on Wednesday, buoyed by a report that top metals consumer China would try to boost spending on autos and home appliances this year, as well as signs of progress in Sino-U.S. trade talks.. Copper may recover towards 413 while taking support near 405 in MCX. Three-month copper on the London Metal Exchange had risen 0.9 percent to $5,959.50 a tonne by 0138 GMT, after slipping 0.3 percent in the previous session. Zinc can move sideways as it can face resistance near 178 while it has support near 173. However, the recent rebound in zinc prices is unlikely to sustain as the seasonality factors are likely to weaken consumption and cap gains in prices. Despite supply bottlenecks, high zinc concentrate treatment charges might prompt smelters to maintain operation. Lead can take support near 134 and can face resistance near 138. Nickel can take witness further recovery as it can test 795. Aluminium can face resistance near 132.50 levels and can take support near 129 levels. Aluminium upside remain capped as LME once again would begin to accept Rusal branded material as US government lifts sanctions.

ENERGY:

Crude oil may trade in green as oil prices rose on Wednesday, extending gains from the previous session on hopes that Washington and Beijing can resolve a trade dispute that has triggered a global economic slowdown. Crude oil can face resistance near 3570 while it has support near 3400. Crude exports from the Middle East for the first week of 2019 increased by 4.28 million bbl w-o-w to 122.38 million bbl. The gain came on the back of higher exports from the UAE, Saudi Arabia and Oman with the Emirates recording the highest weekly gain amongst its regional counterparts. OPEC oil supply fell in December by 460,000 barrels per day, to 32.68 million bpd. The aim of the production cut is to rein in a surge in global supply, driven mostly by the United States, where production grew by nearly a fifth to over 11 million bpd in 2018. Natural gas may open in red as it can tumble lower towards 205 in MCX. Looking over the weather forecast, we can see on above, 6-10 days forecast normal to cooler weather in region and is also showing blue zone developing in eastern region signifying temperature to remain lower than normal levels. The temperature levels in western counties are expected to be nominally warmer and higher than the average temperature levels by around 40%-50%.

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