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Showing posts with label Gold tips. Show all posts
Showing posts with label Gold tips. Show all posts

Wednesday, 10 October 2018


BULLION:-

Gold prices edged higher in the morning session as some investors sought refuge in the precious metal after the global stocks tumbled and the U.S. dollar weakened. Spot gold rose 0.4 percent to $1,194.12 per ounce at the time of writing. U.S. gold futures settled up $1.9, or 0.16 percent, at $1,193.4. Stocks on major world markets fell to a three-month low, with the benchmark S&P500 stock index falling more than 3 percent, in its biggest one-day fall since February. The U.S. dollar index retreated from a seven-week peak hit in the previous session. Gold, however, has fallen over 13 percent since hitting a peak in April, with investors increasingly opting for the safety of the greenback as the U.S.-China trade war unfolded against a backdrop of rising U.S. interest rates. Rising bond yields have also dampened the appeal of gold, which pays no interest. Higher U.S. Treasury yields can translate into more demand for the dollar, making bullion more expensive for holders of other currencies. U.S. Treasury yields held near multi-year highs after government data showed the U.S. producer price index (PPI) climbed in September, which reinforced expectations that the Federal Reserve would continue raising interest rates.  

METALS:-

Zinc fell in the previous session on trade and inflation worries, although it had earlier risen back towards a 3-month high reached last week on shrinking inventories and smelter cuts in China. Zinc inventories in LME-registered warehouses fell to 194,575 tonnes from more than 250,000 tonnes in August and are nearing 10-year lows. Stockpiles in Shanghai Futures Exchange storehouses at 29,204 tonnes are the smallest since 2007. Also weighing on zinc were lingering worries that trade tensions will sap growth. The worries, coupled with rising U.S. bond yields, pushed world shares down to a three month low. Demand for refined zinc will exceed supply by 322,000 tonnes this year, but the gap will narrow to 72,000 tonnes in 2019, industry data showed on Monday. The premium of cash zinc over the three-month contract rose to $41.50, reversing recent falls and signaling a lack of nearby supply.  

ENERGY:-

Oil dropped on Thursday to extend big losses from the previous session as global stock markets suffered a rout, with crude prices also taking a hit from a weekly industry report showing U.S. crude inventories had risen more than expected. Supply worries also eased as Hurricane Michael likely spared oil assets from significant damage as it smashed into Florida, even as it caused injuries and widespread destruction. U.S. West Texas Intermediate (WTI) crude futures were down 57 cents, or 0.8 percent, at $72.60 after dropping 2.4 percent in the previous session. U.S. crude stockpiles rose more than expected last week, while gasoline inventories increased and distillate stocks drew, industry group the American Petroleum Institute said on Wednesday. Crude inventories climbed by 9.7 million barrels in the week to Oct. 5 to 410.7 million, compared with analyst expectations for an increase of 2.6 million barrels. Crude stocks at the Cushing, Oklahoma delivery hub rose by 2.2 million barrels, API said. The U.S. Energy Information Administration (EIA) is due to release official government inventory data today at 08.30 PM IST. In the U.S. Gulf of Mexico, producers have cut daily oil production by roughly 42 percent due to the storm, the Bureau of Safety and Environmental Enforcement said.  


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Saturday, 29 September 2018

BULLION:-

Gold hit a fresh six-week low on Friday as the dollar firmed after upbeat U.S. economic data supported the Federal Reserve's resolve for steady interest rate hikes, putting the metal on track for its longest monthly losing streak since January 1997. The dollar gained against its peers on Friday as data showed U.S. economic growth accelerated in the second quarter at its fastest pace in nearly four years. Another report showed durable goods rose 4.5 percent in August, rebounding from a revised 1.2 percent drop the month before. USD/ short-term outlook is bearish for gold as the dollar may see some upside due to an ongoing trade war between China and the U.S. and the Federal Reserve interest rate hike outlook, according to Argonaut Securities analyst Helen Lau. The Fed raised interest rates on Wednesday and said it planned four more increases by the end of 2019 and another in 2020.  


ENERGY:-

Oil prices steadied on Friday as U.S. sanctions on Tehran squeezed Iranian crude exports, tightening supply even as other key exporters increased production. "The fall in Iranian production is set to intensify once the second round of U.S. sanctions come into effect in November," said Abhishek Kumar, senior analyst at Interfax Europe Ltd. A new round of U.S. sanctions on Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries, kick in on Nov. 4. Washington is demanding that buyers of Iranian oil cut imports to zero to force Tehran to negotiate a new nuclear agreement and to curb its influence in the Middle East. Saudi Arabia is expected to add extra oil to the market over the next couple of months to offset the drop in Iranian production. sources familiar with OPEC policy told Reuters Saudi Arabia and other producers had discussed a possible production increase of about 500,000 barrels per day (bpd) among OPEC and non-OPEC producers. 


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Monday, 17 September 2018



BULLION:-

Gold prices have declined over 12 per cent from April amid intensifying global trade tensions and under pressure from rising US interest rates. Hedge funds and speculators have swung sharply toward pricing in higher rates and yields at the short end of the curve, a sign that they are backing down and now think the Fed will stick to the pace and path of rate hikes it has long flagged. Bond traders are increasing bets the Federal Reserve will raise US short-term interest rates into 2019 as the jobs market tightens and with inflation seen climbing above its 2 per cent goal. Three South African unions have signed a three-year wage deal with AngloGold Ashanti, potentially inching the country's gold industry closer to ending a standoff over pay. 

METALS:-

LME copper opened at a low of $5,858/mt today as shorts surged on news that the US is on the cusp of implementing tariffs of 10% on $200 billion worth of Chinese goods. Spot premiums are expected to stay at highs on expectations of rising demand before the upcoming week-long National Day holiday. Premiums are set at 190-250 yuan/mt today. LME nickel faced resistance at the five- and 10- day moving averages overnight, and settled 1.13% lower, even though pressure from the US dollar eased. The SHFE 1811 contract also fell as spot products increased faster than demand amid opened import window. We expect LME nickel to hover around $12,300/mt today with the contract trading at 101,000-102,500 yuan/mt. Spot prices are set at 102,000-108,500 yuan/mt. 

ENERGY:-

  Oil markets fell on Tuesday as the latest escalation in the Sino-U.S. trade war clouded the outlook for crude demand from the two countries, which are the world's top two oil consumers. U.S. West Texas Intermediate (WTI) crude CLc1 was down 28 cents, or 0.4 percent, to $68.62 per barrel. U.S. President Donald Trump on Monday said he would impose 10 percent tariffs on about $200 billion worth of Chinese imports. growing trade dispute has hurt trading sentiment. The impact on economic growth is slowly dripping in, which again hurts oil prices," Wang Xiao, head of crude research at Guotai Junan Futures, said on Tuesday. Refineries in the United States consumed about 17.7 million barrels per day (bpd) of crude oil last week while China's refiners used about 11.8 million bpd in August, according to government data from the countries, the most among the world's countries.



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Sunday, 16 September 2018



BULLION:-

Gold prices were little changed in the morning session, after falling 0.6 percent in the previous session, as investors remained cautious on reports that the United States is set impose a new round of tariffs on Chinese imports. U.S. President Donald Trump is likely to announce new tariffs on about $200 billion on Chinese imports as early as Monday, a senior administration official told Reuters. The tariff level will probably be about 10 percent, the Wall Street Journal reported, below the 25 percent the administration had said it was considering. The WSJ also reported Beijing may decline to participate in proposed trade talks with the United States later this month if the Trump administration moves forward with the tariffs. The dollar index was firm at 94.951, having bounced from over six-week lows of 94.359 hit last week. Gold prices have declined about 12.6 percent from April amid intensifying global trade tensions and under pressure from rising U.S. interest rates. The months-long trade rift between Washington and Beijing has prompted investors to buy the U.S. dollar in the belief that the United States has less to lose from the dispute.  

METALS:-

Base metals prices fell sharply in the morning session on reports that U.S. tariffs on $200 billion of Chinese goods could be imposed immediately. The tit-for tat trade row between the world's top two economies has left investors fearing that demand for industrial metals will soften. Three-month copper on the London Metal Exchange fell as much as 1.9 percent to $5,861.50 a tonne and stood at $5,890 a tonne at the time of writing, after shedding 1.4 percent on Friday. The most-traded November copper contract on the Shanghai Futures Exchange slipped 1.4 percent to 47,940 yuan ($6,977.86) a tonne. U.S. President Donald Trump is likely to announce new tariffs on about $200 billion on Chinese imports as early as Monday, a senior administration official told Reuters on Saturday. LME nickel fell furthest, tumbling as much as 3.2 percent overnight to $12,250 a tonne, its lowest since Sept. 12, before trimming losses to around 2 percent.  

ENERGY:-

Global oil prices eased in early Asian trading on Monday on concerns that the United States is poised to impose additional tariffs on China, outweighing supply fears from upcoming sanctions on Iran. Brent crude oil futures dipped 16 cents, or 0.2 percent to $77.93 a barrel at the time of writing. U.S. West Texas Intermediate (WTI) futures fell 20 cents or 0.3 percent, to $68.79 a barrel. U.S. President Donald Trump is likely to announce new tariffs on about $200 billion on Chinese imports as early as Monday, a senior administration official told Reuters on Saturday. The escalating trade row is raising concerns about the potential for slower growth in oil consumption, offsetting supply concerns stemming from upcoming U.S. sanctions on Iran over its nuclear program. Refiners in India, Iran’s second largest crude buyer will cut their monthly crude loadings from Iran for September and October by nearly half from earlier this year. Also weighing on oil prices, U.S. drillers added two oil rigs in the week to Dec. 1, bringing the total count up to 749, the highest since September, General Electric Co’s Baker Hughes energy services firm said in its closely followed report on Friday.



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Tuesday, 11 September 2018


BULLION:-

Gold at COMEX continued to trade below $1200/Oz with a downward pressure as the likelihood that the Federal Reserve will announce and implement an interest rate hike on September 27 at the end of this month’s FOMC meeting, traders and investors are beginning to focus on what comes after that. Currently, the CME’s FedWatch tool predicts a 99% probability of a rate hike this month, followed by a 60% probability that the Fed will implement another rate hike in December. This action could continue to weigh heavily on gold prices as higher interest rates will certainly be supportive of the U.S. dollar. Last week’s jobs report is certainly supportive of a rate increase this month. Concerns continue to grow as the United States and China continue to be deeply immersed in a trade dispute that seems more and more like it will become a full-blown trade war.  

METALS:-

Base metals were trading mixed on Tuesday morning as an intensifying trade dispute between the United States and China raised concerns over demand for industrial metals. China will respond if the United States takes any new steps on trade, the foreign ministry said on Monday, after U.S. President Donald Trump warned he was ready to slap tariffs on virtually all Chinese imports into the United States. Trump said on Friday he was ready to levy additional taxes on practically all Chinese imports, threatening duties on $267 billion of goods over and above planned tariffs on $200 billion of Chinese products. Wood Mackenzie estimates the expansion of the tariff list could raise the impact to around 1 percent of total Chinese copper demand, as many copper intensive goods are included in the extended list. 
ENERGY:-

Oil was steady on Tuesday, supported by looming U.S. sanctions against Iran's petroleum industry. But prices were capped by signs that increased supplies by other major producers, including the United States and Saudi Arabia, could make up for the disruptions from Iran. Washington is putting pressure on other countries to also cut Iran imports, with close allies like South Korea and Japan, but also India, showing signs of falling in line. US Energy Secretary Rick Perry met with Saudi Energy Minister Khalid al-Falih on Monday in Washington, the US Energy Department said, as the Trump administration encourages big oil-producing countries to keep output high ahead of the renewed sanctions. Perry will also meet with Russian Energy Minister Alexander Novak on Thursday in Moscow. Russia, US and Saudi Arabia are the world's three biggest oil producers by far, meeting around a third of the world's almost 100 million barrels per day (bpd) of daily crude consumption. Combined output by these three producers has risen by 3.8 million bpd since Sept.  



Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647.

Monday, 10 September 2018

BULLION:-

Gold at COMEX continued to trade below $1200/Oz with a downward pressure as the likelihood that the Federal Reserve will announce and implement an interest rate hike on September 27 at the end of this month’s FOMC meeting, traders and investors are beginning to focus on what comes after that. Currently, the CME’s FedWatch tool predicts a 99% probability of a rate hike this month, followed by a 60% probability that the Fed will implement another rate hike in December. This action could continue to weigh heavily on gold prices as higher interest rates will certainly be supportive of the U.S. dollar. Last week’s jobs report is certainly supportive of a rate increase this month. Concerns continue to grow as the United States and China continue to be deeply immersed in a trade dispute that seems more and more like it will become a full-blown trade war. As long as there is a real possibility that the trade dispute will become a trade war, we could see the U.S. dollar strength continue and the Chinese yuan weaken. On the other hand, MCX gold which supposed to trade in-line with the COMEX gold, discounting the USDINR movement.

METALS:-

Base metals were trading mixed on Tuesday morning as an intensifying trade dispute between the United States and China raised concerns over demand for industrial metals. China will respond if the United States takes any new steps on trade, the foreign ministry said on Monday, after U.S. President Donald Trump warned he was ready to slap tariffs on virtually all Chinese imports into the United States. Trump said on Friday he was ready to levy additional taxes on practically all Chinese imports, threatening duties on $267 billion of goods over and above planned tariffs on $200 billion of Chinese products. Wood Mackenzie estimates the expansion of the tariff list could raise the impact to around 1 percent of total Chinese copper demand, as many copper intensive goods are included in the extended list. 

ENERGY:-

Oil was steady on Tuesday, supported by looming U.S. sanctions against Iran's petroleum industry. But prices were capped by signs that increased supplies by other major producers, including the United States and Saudi Arabia, could make up for the disruptions from Iran. Washington is putting pressure on other countries to also cut Iran imports, with close allies like South Korea and Japan, but also India, showing signs of falling in line. US Energy Secretary Rick Perry met with Saudi Energy Minister Khalid al-Falih on Monday in Washington, the US Energy Department said, as the Trump administration encourages big oil-producing countries to keep output high ahead of the renewed sanctions. Perry will also meet with Russian Energy Minister Alexander Novak on Thursday in Moscow. Russia, US and Saudi Arabia are the world's three biggest oil producers by far, meeting around a third of the world's almost 100 million barrels per day (bpd) of daily crude consumption. Combined output by these three producers has risen by 3.8 million bpd since Sept. 2014, more than the peak 3 million bpd Iran has managed during the last three years. 


Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647.

Monday, 3 September 2018


Gold inches down as trade worries keep dollar firm.

Gold inched down on Tuesday as the dollar remained firm near a one-week high on the back of intensifying global trade tensions, but analysts said growing emerging market worries could benefit the metal. Spot gold was down 0.1 per cent at $1,199.40 an ounce at 0049 GMT. US gold futures were down 0.1 per cent at $1,206 an ounce. Markets are nervous about the escalating trade conflict between the United States and China, after US President Donald Trump said last week that he wanted to move ahead on a plan to impose tariffs on Chinese imports worth $200 billion. 

Pressure from shorts mounted as open interests across all SHFE copper contracts rose. 

Pressure from shorts mounted as open interests across all SHFE copper contracts rose 8,354 lot to 611,000 lots overnight. Pessimistic sentiment over macro economy will weigh on copper prices in the near run. The SHFE 1811 contract settled 300 yuan/mt lower at 47,860 yuan/mt. In the spot market, sellers held premiums firm, as traders accounted for most transactions. Spot premiums are seen at 130-170 yuan/mt today.

Large amount of Norilsk nickel entered the domestic market last Friday while downstream demand rose slightly. 

LME nickel slowed its decline by 0.12%, hovered around the daily moving average and closed at $12,795/mt. We expect it to consolidate around $12,750/mt with the SHFE 1811 contract trading at 104,000-105,500 yuan/mt. Pressure will remain in the short run after large amounts of Norilsk nickel entered the domestic market. Spot prices are likely at 104,500-109,000 yuan/mt.

Oil prices rise as Gulf oil rigs evacuated ahead of hurricane. 

 U.S. oil prices rose on Tuesday, breaking past $70 per barrel, after two Gulf of Mexico oil platforms were evacuated in preparation for a hurricane. APC.N said on Monday it had evacuated and shut production at two oil platforms in the northern Gulf of Mexico ahead of the approach of Gordon, which is expected to come ashore as a hurricane. This came as India allowed state refiners to import Iranian oil if Tehran arranges and insures tankers. International shippers have stopped loading Iranian oil as U.S. financial sanctions against Tehran prevent them from insuring its cargoes. Mirroring a step by China, where buyers are shifting nearly all their Iranian oil imports to vessels owned by National Iranian Tanker Co (NITC), this means that Asia's two biggest oil importers are making plans to continue Iran purchases despite pressure by Washington to cut orders. said Brent was also pressured by emerging market turmoil and the strong dollar, which makes crude imports for countries using other currencies more expensive.


Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647.


BULLION:-

Gold prices traded sideways during early trades on Tuesday, in the previous session also it closed flat amid thin trade with US and Canadian financial markets closed for their respective Labor Day holidays. On a wider perspective, gold remains depressed amid US interest rate outlook and is not seen as a safe haven asset, to protect from trade wars, Brexit concerns and emerging-market jitters. With no major economic reports out Monday due to the U.S. holiday, investors looked forward to the publication of the August nonfarm payrolls report on Friday. The consensus forecast is for the creation of 191,000 jobs last month, while the unemployment rate is expected to hold steady at 3.9%. With expectations pointing to another solid reading for the U.S. labor market, the report is not likely to move market expectations for the Federal Reserve to hike interest rates by a quarter point at the next policy meeting on September 25-26. Fed fund futures currently put the probability of an additional increase in December at just under 70%, according to Investing.com’s Fed Rate Monitor Tool. Higher interest rates tend to weigh on demand for gold, which doesn’t bear interest, in favor of yield-bearing investments. Growing turbulence in Argentina once again focused global attention on emerging markets. On Monday, Argentine President Mauricio Macri announced new taxes on exports and steep cuts to government spending in what he termed "emergency" measures to balance next year's budget.

METALS:-

London metal prices steadied on Tuesday, but a trade dispute between China and the United States chilled factory activity in August and tempered appetite for metals. Other ShFE metals were also weaker, with nickel , zinc and tin all down around 1 percent. Manufacturing activity in China took a hit from weak orders in August, surveys showed, a sign firms are feeling the pinch from the intensifying trade war between the Sino U.S. trade war that could derail global growth. Chilean state miner Codelco halted the operations of three out of four furnaces at its Ventanas copper foundry on Monday morning after high levels of sulphur dioxide were detected, it said in a statement. U.S. President Donald Trump is likely to impose 25 percent tariffs on $200 billion of additional Chinese goods as soon as this Friday. Nickel sank to its lowest in more than seven months on Monday, weighing on nickel, mainly used to make stainless steel, was another fall in construction steel rebar prices in Shanghai after they posted their weakest weekly performance since late March. LME lead was the biggest gainer, rising 1.2 percent to $2,103 a tonne as inventories continued to fall. On-warrant LME stocks fell by 1,050 tonnes to 59,050, the lowest since June 2013, data showed on Monday.

ENERGY:-

US oil prices edged up on Tuesday, rising back past $70 per barrel, after two Gulf of Mexico oil platforms were evacuated in preparation for a hurricane. Anadarko Petroleum Corp said on Monday it had evacuated and shut production at two oil platforms in the northern Gulf of Mexico ahead of the approach of Gordon, which is expected to come ashore as a hurricane. International Brent crude futures, by contrast, lost ground, trading at $78.10 per barrel, down 5 cents from their last close. This came as India allowed state refiners to import Iranian oil if Tehran arranges and insures tankers. Many international shippers have stopped loading Iranian oil as U.S. financial sanctions against Tehran prevents them from insuring its cargoes. Mirroring a step by China, where buyers are shifting nearly all their Iranian oil imports to vessels owned by National Iranian Tanker Co (NITC), this means that Asia’s two biggest oil importers are making plans to continue Iran purchases despite pressure by Washington to cut orders. Russia's crude and condensate production averaged 11.21 million b/d in August, dipping 8,000 b/d from July, when the country cranked up production significantly, according to preliminary data released Sunday by the Central Dispatching Unit, the energy ministry's statistics arm.



Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647.

Tuesday, 28 August 2018



BULLION:

Gold, however, has recovered after touching 1-1/2-year lows on Aug. 16 at $1,159.60 as the dollar's run slowed after U.S. President Donald Trump criticized the Federal Reserve for raising interest rates at a time when the government was trying to stimulate the economy. Spot gold may rise to $1,224 an ounce, as it has broken a resistance at $1,209 per ounce, according to Reuters technical analyst Wang Tao. shorts in COMEX gold contracts were at a record high. short positions will not be covered till you see a major trigger for buying," said Amit Kumar Gupta, portfolio management services head at Adroit Financial Services in New Delhi.

ENERGY:-


The monitoring committee of the Organization of the Petroleum Exporting Countries (OPEC) found that oil producers participating in a supply-reduction agreement, which includes non-OPEC member Russia, cut output in July by 9 percent more than called for. are now more confident that supply is likely to fall short of demand in the coming months, as reflected by a narrowing in the discount, or spread, between the October and November Brent futures contracts to around 26 cents a barrel LCOc1-LCOc2 , half of what it was a month ago. The findings of the OPEC monitoring committee for last month compare with a compliance level of 120 percent for June and 147 percent for May, meaning participants have been steadily increasing production, but at a more modest pace than some had expected.


Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647.

Thursday, 23 August 2018


Gold prices retreated from resistance defining the down trend started in mid-June. 

Commodity prices turned lower Thursday following the prior sessions’ gains as a recovery in the US Dollar pressured assets denominated in terms of the benchmark unit (as expected). Perennially anti-fiat gold prices appeared to reflect the currency’s recovery most directly while crude oil prices merely stalled having scored the largest daily gain in 2 months Wednesday. The greenback advanced alongside two-year Treasury bond yields as the priced-in 2018 interest rate hike path implied in Fed Funds futures steepened. The move probably marks pre-positioning ahead of a much-anticipated speech from Fed Chair Jerome Powell at the central bank’s Economic Symposium in Jackson Hole, Wyoming on Friday.

COPPER is extending its recovery and now it’s in range bound. 

LME copper climbed above the daily moving average from a low of $5,901.5/mt on Thursday, with pressure from the five- and 10-day moving averages. The SHFE 1810 contract rose to close at 48,480 yuan/mt overnight. Open interests for the SHFE copper contracts shrank to 587,000 lots. We expect copper prices to trade range bound in the short term. Spot premiums are seen lower at 70-130 yuan/mt today with inflows of imports.

Risk aversion sentiment grew as China’s stainless steel exports. 

LME nickel tumbled to an intraday low of $13,185/mt before it regained some losses and closed at $13,240/mt on Thursday. The SHFE 1811 contract fell to a low of 108,760 yuan/mt before it recovered some losses and closed at 109,630 yuan/mt overnight. Risk aversion sentiment grew as China’s stainless steel exports are expected to be affected by the new round of trade tariffs. We expect nickel prices to trade range bound today. LME nickel is likely to hover around $13,200/mt and the SHFE 1811 contract is expected to trade at 108,500-110,000 yuan/mt. Spot prices are seen at 109,000-112,000 yuan/mt.

Oil prices rise on Iran sanctions, but U.S.-China row mutes trading. 

Oil prices rose on Friday as U.S. sanctions on Iran are expected to cut significant volumes of crude from the market, although trading was muted by concerns over the unresolved trade dispute between Washington and Beijing. Traders said the supply versus demand outlook for oil markets was relatively tight because of the looming U.S. sanctions against Iran, which will target oil exports from November. Iran is the third-biggest producer within the Organization of the Petroleum Exporting Countries (OPEC), exporting on average around 2.5 million barrels per day (bpd) of crude and condensate this year, equivalent to around 2.5 percent of global consumption.


Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647.



Monday, 20 August 2018


Gold regains strength amid planned U.S., China trade talks.

Spot gold prices bounced from 19-month lows on Thursday, as the U.S. dollar slipped on news that China and the United States will hold trade talks this month, although sentiment remained negative. Gold futures settled slightly down as the U.S. dollar came off its lows later in the trading session, yet remained negative. Spot gold XAU= gained 0.3 percent at $1,177.80 an ounce by 1:39 p.m. EDT (1739 GMT), from an earlier low of $1,159.96, it’s weakest since January last year. U.S. gold futures GCcv1 for December delivery settled down $1, or 0.1 percent, at $1,184 per ounce. Auto catalyst metal platinum is oversupplied. South Africa, the world's top platinum producer, saw its rand currency ZAR= hit a two-year low due to contagion from the Turkish lira earlier this week. A lower rand cuts costs for South African miners when expressed in dollars, which means they can keep producing and delaying the process of rebalancing the market.

Copper Tumbles into a Bear Market.

While the risk of a strike at BHP’s Escondido copper mine in Chile has temporarily wound down, the movement of Chinese yuan and the performance of Chinese economy would be key. Spot premiums are seen higher at 100-140 yuan/mt today given the early tumbles in futures prices. The euro zone’s surplus for goods traded with the rest of the world fell by less than forecast in June, suggesting the bloc may be weathering international trade frictions better than expected. Initial claims for state unemployment benefits slipped 2,000 to a seasonally adjusted 212,000 for the week ended August 11, the Labor Department said on Thursday. Data for the prior week was revised to show 1,000 more applications received than previously reported.

Decreasing inventories and upbeat fundamentals in China also buoyed nickel prices.

LME nickel jumped past $13,400/mt before it met pressure at $13,500/mt and closed at $13,340/mt on Thursday. The SHFE 1811 contract climbed to 111,450 yuan/mt before it edged down, hovering around the daily moving average, and closed at 110,620 yuan/mt overnight. Decreasing inventories and upbeat fundamentals in China also buoyed nickel prices. We expect the prices to extend their gains today. LME nickel is likely to hover around $13,000/mt today and the SHFE 1811 contract is expected to trade at 110,000-111,500 yuan/mt with spot prices at 109,000-111,000 yuan/mt.

Oil prices slip amid fears over global economic growth.

Oil prices fell on Friday, with U.S. crude heading for a seventh weekly decline amid increasing concerns about slowing global economic growth that could hit demand for petroleum products as inventories build. China and the United States have implemented several rounds of trade tariffs and threatened further duties on exports worth hundreds of billions of dollars, which could knock global economic growth.At the same time, the crisis gripping the Turkish lira has rattled emerging markets and reverberated across equities, bonds and raw materials.U.S. data on Wednesday showed crude output C-OUT-T-EIA rose by 100,000 barrels per day to 10.9 million bpd in the week ending Aug. 10.Crude inventories C-STK-T-EIA increased by 6.8 million barrels, representing the largest weekly rise since March last year.


Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647.