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Precious Metals Preview:

download (19)COMEX Gold Supported As Dollar Sinks.

Gold witnessed a very choppy movement as global markets saw thin moves and sentiments in the yellow metal turned lax after prices eased from one week high above $1900 per ounce. However, the US dollar index fell under 90 mark and currently lingers at 89.70, down 0.20% on the day, keeping Gold broadly supported. COMEX Gold futures currently trade at $1888 per ounce, up 0.30% on the day right now. MCX Gold futures fell under Rs 49900 per 10 grams now as strength in the Indian Rupee weighed on the counter. The INR hit around a two month high of 73.34 per US dollar today as local equities hit a fresh record high.
The focus is likely to turn on the continued slide in the US dollar following the Covid-19 stimulus by the US and concurrent impact in other currencies. The People’s Bank of China (PBOC) stated today that it will make monetary policy flexible, targeted and appropriate and added that it will keep the yuan exchange rate basically stable, media reports noted. Major economies will be keeping a track of the movement in the US dollar and Gold would benefit from a secular debasement in currencies.

Energy Preview:

crude-oil-price-compressedWTI Crude Stabilises Above $48 Per Barrel.

WTI Crude oil futures stabilized above $48 per barrel as weakness in the US dollar and steady moves in equities kept the sentiments supported. MCX Crude oil futures fell near Rs 3500 per barrel before pulling back on firm global cues. Near term trend looks choppy for oil but the improving outlook on the economic front and trade is likely to augur well for the commodity. The United Nations noted in a latest update that global and regional merchandise trade have faced significant downward pressure throughout 2019 and 2020. The emergence of the COVID-19 pandemic, coupled with increasing trade tensions and an already slowing global economy, have paved the way for the world’s worst economic performance since the Great Depression, with global international trade value estimated to dip by 14.5% in 2020. In 2021, merchandise trade volumes are expected to rebound: globally by 7.2%, and in Asia and the Pacific by 5.8% and 6.2% in terms of real exports and imports, respectively.

Base Metals Preview:

shutterstock_546669673-minCOMEX Copper Stays Supported.

Copper was caught in a tight range amid limited trading interest. Sentiments remained choppy for world markets as liquidity was thin ahead of the yearend and lack of major economic updates. The red metal currently trades up 0.60% at around $3.57 per pound. MCX Copper futures turned lower though, testing near Rs 600 per kg as the Indian Rupee hit around two month high against the US dollar.
The only key update out yesterday on the US economic front was data on the housing front. The S&P CoreLogic Case-Shiller US National Home Price NSA Index, covering all nine US census divisions, reported an 8.4% annual gain in October, up from 7.0% in the previous month. The 10-City Composite annual increase came in at 7.5%, up from 6.2% in the previous month. The 20-City Composite posted a 7.9% year-over-year gain, up from 6.6% in the previous month.
The National Index posted a 1.4% month-over-month increase, while the 10-City and 20-City Composites both posted increases of 1.4% and 1.3% respectively, before seasonal adjustment in October. After seasonal adjustment, the National Index posted a month-over-month increase of 1.7%, while the 10-City and 20-City Composites both posted increases of 1.6%. In October, all 19 cities (excluding Detroit) reported increases before and after seasonal adjustment.

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

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