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Precious Metals Preview:

download (1)Gold Tests One Week Low Before Witnessing Recovery.

COMEX Gold fell sharply amid sustained selling pressure in last session. The metal tested one week low under $1940 per ounce before some buying emerged on flat moves in US equities and Covid-19 worries. World Health Organization on Thursday warned that Europe is bracing for a very serious situation regarding the coronavirus, as it is going to transmit at alarming rates across the continent. This cut losses in Gold and the metal currently trades at $1959 per ounce, up 0.50% on the day. MCX Gold ended at Rs 51468 per 10 grams, down 0.70% on the day after testing low near Rs 51180 mark.

Fund buying is active in Gold at lower levels, latest price action suggests. Large precious metals speculators continued to increase their net long positions further in the Gold futures markets last week after recent drop, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on last Friday. The non-commercial futures contracts of Gold futures, traded by large speculators and hedge funds, totaled a net position of 236473 contracts in the data reported through September 7th 2020. This was a weekly gain of 5677 net contracts. The net long positions are now at a one month high.

Base Metals Preview:

download (2)COMEX Copper Soars To 27 Month High.

COMEX Copper rallied to 27 month high yet again as global central banks remained in a dovish mode. The Bank of England kept its interest rate at a record low on Thursday, but policymakers started to assess how negative interest rates work. The nine-member Monetary Policy Committee unanimously decided to hold the interest rate at 0.10 percent. Policymakers also unanimously decided to retain the size of the asset purchase programme at GBP 745 billion. Japan’s central bank policy board voted 8-1 to retain the interest rate at -0.1% on current accounts that financial institutions maintain at the central bank. The bank will continue to purchase necessary amount of Japanese government bonds without setting an upper limit so that 10-year JGB yields will remain at around zero percent. COMEX Copper also benefitted from sliding US dollar index which fell under 93 mark. COMEX Copper currently trades at $3.09 per pound, up 0.50% on the day. MCX Copper closed at Rs 531.55 per kg, up 0.43% on the day.

Energy Preview:

Crude-oilWTI Crude Jumps Above $41 Per Barrel.

WTI Crude oil jumped above $41 per barrel in last session, rallying more than 2% as traders focused on OPEC+ updates. Top energy ministers comprising the JMMC gathered to discuss latest oil market outlook and review production quota compliance. Oil soared on remarks from Saudi Prince Abdulaziz which effectively suggested a tighter oil market. MCX Crude ended at Rs 3022 per barrel, up 2.79%. Local traders also focused on the sliding Indian. INR closed at 73.66, down 14 paise on the day after testing 73.78 per dollar in intraday moves – recording its lowest in last one week.

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

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