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Showing posts with label Intraday commodity tips. Show all posts
Showing posts with label Intraday commodity tips. Show all posts

Monday, 7 January 2019




BULLION-
MCX Gold and Silver may note choppy trade in line with the international market but the overall bias is on the upside. COMEX gold trades mixed near $1290/oz after a 0.3% gain yesterday. Gold has turned choppy after testing $1300/oz level for the first time since June 2018. The rally in gold price came to a halt amid improved risk sentiment. Progress over US-China trade talks, upbeat US labour data, Feds patient stance on interest rate hikes and Chinas move to cut reserve requirement rate helped global equity market stabilize. Commerce Secretary Wilbur Ross said there's a "very good chance" the US gets a reasonable deal with China. ETF outflows also show some profit taking in gold. Gold holdings with SPDR ETF fell by 1.47 tonnes to 796.78 tonnes. However, supporting price is the weaker outlook for US dollar amid Feds cautious tone on US economy and patient stance on interest rate hikes. Atlanta Fed President Raphael Bostic said the US central bank should only raise interest rates once this year but keep going with its plan to gradually shrink the balance sheet. While risk sentiment has improved, global uncertainty persists amid a slowdown in the Chinese economy, US government shutdown and Brexit uncertainty. Gold may witness mixed trade as market players await fresh cues. However, we maintain buy on dips view as US dollar is likely to remain choppy while risk sentiment may not improve significantly. COMEX Silver trades weaker near $15.7/oz amid rangebound movement in gold and weakness in industrial metals. Gold has turned choppy amid lack of fresh cues. Industrial metals are pressurized by concerns about the Chinese economy. ETF outflows also show weaker investor interest. Silver holdings with iShares ETF fell by 72.98 tonnes to 9790.1 tonnes, lowest since June 2018. The spot gold-silver ratio rose from 81.9 to 82.4 as silver ended lower yesterday. 

BASE METAL - Basemetal on LME trade sideways to lower today after ending on a higher note yesterday. LME Zinc was the top performer with 2.5% gains following a 0.7% rise in Aluminum prices and 0.4% gains in Nickel prices. In other metals, Copper and Lead too ended modestly higher. The metals pack trades sideways to lower in early trades today after two days of gains amid caution ahead of US-China trade talks outcome. Markets are in a wait and watch mode as they await the outcome of US-China trade talks. The Trump administration has expressed optimism it can reach a reasonable trade deal with China as President Xi Jinping dispatched one of his top aides to negotiations in Beijing. Also putting pressure on the prices is demand worries especially from top consumer China along with and a mixed trend in the global equity market. 


ENERGY -Crude Oil- MCX Crude may note choppy trade in line with international prices but overall bias may be on the upside. NYMEX crude trades mixed near $48.5/bbl after a 1.2% gain yesterday. Crude hit a session high of $49.79/bbl yesterday but retreated to end the day at $48.52/bbl. Crude has rallied more than 15% from recent lows amid lower output from OPEC and recovery in the US equity market. OPECs production fell last month while OPEC and allies have promised adherence to the 1.2 million barrels per day cut deal which will run from January to June. US and global equity market recovered amid upbeat US labour data, Chinas move to cut reserve requirement and progress over US-China trade talks. Also supporting crude is decline in US crude oil rig count which indicates weakening production interest. Early forecasts indicate that US weekly report may note a 1.1 million barrels decline in US crude oil stocks. While crude has recovered sharply from recent lows, the rally will be challenged by higher US output and demand concerns amid uncertainty about US and Chinese economy. US crude production is at record high level and is expected to rise further. Concerns about US economy are high amid mixed economic data, continuing government shutdown and impact on corporate earnings from trade war and higher interest rates. Chinese economic data continues to show a slowdown in the economy. Crude may witness choppy trade amid lack of fresh cues but general improvement in risk sentiment and lower OPEC supply will
support price.Natural Gas- MCX Natural gas may note mixed trade in line with the international market but sell on rising is suggested. NYMEX natural gas trades marginally higher near $2.96/mmBtu after a 3.3% decline yesterday. Lack of fresh cues has resulted in some short covering in natural gas. However, weighing on price is a forecast of mild weather in US which will keep a check on heating demand. Also weighing on price is expectations of another smaller than average decline in gas stocks which will further ease tightness concerns. Natural gas may witness choppy trade amid lack of fresh cues but slack demand expectations may keep the pressure on price. The focus will be on US weather and trend in energy prices. 


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Sunday, 6 January 2019


BULLION:- counter may continue its last week upside momentum following comments by U.S. Federal Reserve Chairman Jerome Powell that the central bank would be patient and flexible in steering the course of interest rates. The Fed chairman on Friday sought to ease market concerns that the U.S. central bank was ignoring signs of an economic slowdown, saying he was aware of the risks and would be patient and flexible in policy decisions this year. Gold can test 31650 in MCX taking support near 31370 in MCX and silver can move further upwards towards 39500. U.S. employers hired the most workers in 10 months in December while boosting wages, pointing to sustained strength in the economy that could ease fears of a sharp slowdown in growth. Gold discounts in India widened to a two-month high last week as prices surged to a more than six-month peak and demand remained subdued due to New Year holidays. Chinese officials will meet their U.S. counterparts for trade negotiations starting later Monday, the first face-to-face talks of the year.

BASE METALS:- prices may continue last week recovery on the hope of trade deal between US and China this week. Copper can take key support near 400 and can recover towards 416. Zambia's Konkola Copper Mines (KCM), majority owned by Vedanta Resources, suspended operations at its Nchanga mine following the introduction of import duty on copper concentrates, the company said. Zambia, Africa's No.2 copper producer, introduced new mining duties, increased royalties and plans to replace Value Added Tax (VAT) with a sales tax by April to help bring down mounting debt. Zinc can recover towards 175 taking support near 168. China's steel and iron ore futures started the week firmly on Monday, buoyed by central bank policy easing and by hopes that talks could help end Sino-U.S. trade tensions. China's central bank on Friday cut the amount of cash that banks have to hold as reserves for the fifth time in a year, freeing up $116 billion for new lending. Lead can take support near 134 and can face resistance near 138. Nickel can take witness further recovery as it can test 785. Aluminium can take improve further towards 131 levels taking support near 128 levels. 

ENERGY:- Crude oil may trade in green as oil prices rose by more than 1 per cent on Monday, lifted by optimism that talks could soon resolve the trade war between the United States and China, while supply cuts by major producers also supported the market. Financial markets were riding a relief rally on Monday on expectations that face-to-face trade negotiations between delegates from Washington and Beijing, due to start on Monday, would lead to an easing in tensions between the two biggest economies in the world. Crude oil can test 3400 while taking support near 3300. Despite the likelihood of a slowdown, crude future prices were being supported by supply cuts started late last year by a group of producers around the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC) as well as non-OPEC Russia. Natural gas may open in red as it can tumble lower towards 200 in MCX. The number of rigs drilling for natural gas in the United States remains unchanged this week at 198, data from oil services firm Baker Hughes showed on Friday. Horizontal rigs -- the type most often used to extract oil.


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Thursday, 3 January 2019


BULLION:- Gold hit fresh six months high on tense global equities. US stocks fell nearly 3% on the day. Market participants are watching a partial US government shutdown that is nearing its second week as President Donald Trump's to meet with top lawmakers to discuss reopening the government by resolving a dispute over funding for the expansion of the US-Mexico border wall did not bear any meaningful result. COMEX Gold is currently trading at $1297 per ounce, up marginally on the day. MCX Gold futures ended at Rs 31800 per 10 grams, up 0.60% on the day. The Indian Rupee extended losses yesterday amid weak stock markets. The domestic currency closed around 70.20 per US dollar after testing a two week low above 70.50 marks.

However, the demand concerns in physical markets can come into the picture for Gold in the near term. The US bullion coin sales reported a weak performance for the second year in a row in 2018 despite lower gold and silver prices, according to the latest data released by the US Mint. The sales of American Eagle gold and silver coins were the lowest since 2007, while American Buffalo coins saw a modest recovery from the worst year on record.

BASE METAL:- COMEX Copper slipped amid weak equities and profit selling pressure. Deep losses were seen in American and European markets with the shares in US, Germany and France leading the charge. However, bargain buying lifted the red metal today after the commodity tested near four month low. The red metal currently trades at $2.59 per pound, up 0.75% on the day after a sharp correction yesterday. The MCX Copper futures ended down 1% on the day, closing just above Rs 400 per kg level.

Sentiments stayed lax on uncertainty about US trade policy and concerns over federal government funding of a border wall with Mexico. General concerns about a global economic slowdown also weighed on sentiments. Global cellphone giant Apple Inc cut its quarterly sales forecast for the first time in more than a decade, with Chief Executive Officer (CEO) Tim Cook blaming slowing iPhone sales in China, whose economy has been dragged down by uncertainty around United States (US) - China trade relations.


ENERGY: -Crude oil edged up Thursday amid volatile trade as markets focussed on the talk that Saudi Arabia is likely cutting crude output. Prices have not been able to hold onto their gains this week as soaring US Crude oil output clubbed with corrective equities are hurting the sentiments for the commodity. The WTI Crude futures currently trade at $47.25 per barrel, up 0.30% on the day. MCX Crude should recover on these cues after closing under Rs 3290 per barrel yesterday.

Oil could face selling pressure on further gains. US crude oil output surged to an all-time high of more than 11.5 million barrels per day in October 2018, according to data from the Energy Information Administration (EIA). Crude production rose 79,000 bpd in October to 11.537 million bpd, the US Energy Information Administration said in a monthly report. The EIA revised its September oil production figure down by 17,000 bpd to 11.458 million bpd. US oil production broke its 1970 record of 10.04 million bpd in November 2017, and has set monthly record highs for five straight months since June


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Monday, 31 December 2018


BULLION: -Gold prices fell slightly on Monday as Asian equities benefited from hints of progress on the long-drawn China-U.S. trade spat, while the dollar held steady in a narrow range. U.S. gold futures dipped 0.1 percent to $1,282 per ounce. The dollar index, a gauge of its value versus six major peers, held a narrow range in thinly traded markets. U.S. President Donald Trump said he held a very good call with Chins President Xi
Jinping on Saturday to discuss trade and claimed big progress was being made. The Wall Street Journal reported negotiators were starting to work out a deal that could boost U.S. exports and loosen regulations that stifle U.S. firms in China. North Korean leader Kim Jong Un said he wants to hold more summits with South Koreas Moon Jae-in next year to achieve the goal of denuclearization of the Korean peninsula, Moons office said
on Sunday. The European Union is not trying to keep Britain in and wants to start discussing future ties the moment the UK parliament approves Brexit, partly to focus on its own unity ahead of May elections, the head of the blocs executive said. U.S. Senator Lindsey Graham said on Sunday that he was optimistic that Republicans, Democrats and President Donald Trump could reach a deal to end a government shutdown that includes
border wall funding and legal status for some undocumented immigrants. Physical gold demand lacked vigour in most Asian hubs last week as limited safe haven interest failed to lift activity into the year-end, while jewellers in India stepped up purchases, hoping for a further leg to a rally in
domestic rates.

ENERGY:-Oil prices edged higher on the last trading day of the year on Monday, taking a cue from firmer stock markets, but remain on track for the first yearly decline in three years amid concerns of a supply glut. Hints of progress on a possible U.S.-China trade deal helped bolster sentiment, which has been battered by concerns over a weaker global economic outlook. Brent crude futures the international benchmark for oil prices - rose
17 cents, or 0.3 percent, to $53.38 a barrel. Brent has shed about 20 per cent in 2018 following two years of successive growth. U.S. West Texas Intermediate (WTI) crude futures were at $45.75 a barrel, up 42 cents, or 0.93 per cent, from their last close. WTI is down nearly 25 percent this year. Crude prices have been closely tracking equity markets during volatile trading for both asset classes last week. Meanwhile, imports of Iranian
crude oil by major buyers in Asia hit their lowest in more than five years in November as U.S. sanctions on Irans oil exports took effect last month. Asia's imports from Iran are set to rise again in December after the U.S. granted temporary waivers to some countries, but is not known how much Iran will be able to export once the waivers expire around the start of May. arlier this month, the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, agreed to curb output by 1.2 million bpd starting in January in a bid to clear a supply overhang and
prop up prices.

BASE METALS:-Copper inched up on Friday for its first weekly rise in five weeks as gains on global equity markets rekindled interest in riskier assets and a weaker dollar made metal cheaper for buyers with other currencies. Benchmark copper on the London Metal Exchange (LME) closed up 0.2 percent at $5,997 a tonne and around 0.2 per cent higher for the week. Still, concerns over slowing economic growth in China, the biggest metals consumer, have left copper down 17 per cent over the year as a whole. Chinas manufacturing sector is expected to have contracted for the first time in more than two years in December, a poll found. Data this week showed earnings at Chinese industrial firms in November dropped for the first time in nearly three years. China and the United States plan face-to-face consultations on trade in January, the Chinese commerce ministry said. Worries that trade tariffs will curtail demand for metals have dragged prices lower this year.


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Thursday, 27 December 2018


Gold prices rose by Rs 100 to Rs 32,500 per 10 grams on Wednesday in the Delhi Sarafa Bazar market due to demand from local jewellery demand at the highest level of six months on the yellow metal. In the meantime, silver gained Rs. 125 to Rs. 38,125 per kg from the demand for industrial demand. Globally, London's gold spot jumped by $ 4.33 to $ 1,273.40 an ounce. In February, the US gold futures also increased by $ 5.10 to $ 1,276.90 per ounce.

Dollar downgrade by trump
According to analysts, investors' tension has been reduced in risky investments due to increased stress on monetary policy between US President Donald Trump and the US Federal Reserve. At the same time, the interest in safe investment has increased due to the insistence of Trump to refuse to sign the federal expenditure to pass a $ 5 billion bill to fencing the US border with Mexico. Government work in the US is partially stalled due to Trump's stumbling attitude. In the overseas markets, silver gained Rs 0.12 to $ 14.85 an ounce.


Silver crosses Rs 38 thousand counter

Gold standard rose by Rs 100 to Rs 32,500 per ten gram after the 12th day of December, after gold demanded for the third consecutive day as demand of domestic pearls rose. Gold Bitur also reached the same level of Rs 32,350 per 10 grams. However, the eight-gramy gini was steady at Rs 25,000. Silver coins continued to rise by Rs 125 to Rs 38,125 per kilogram on industrial demand. Silver futures also rose by Rs 140 to Rs 37,680 per kg. Coin and selling remained steady at Rs 74 thousand and Rs 75 thousand per sq.


Price of both precious metals in Delhi Sarafa Bazar (Rs.

  •  10 grams per standard gold: 32,500
  •   10 grams per golden bitur: 32,350
  •  Silver Spot Per Kg: 38,125
  •  Silver futures per kilogram: 37,680
  •  Coin sold per hundred: 74,000
  •  Coin sold per hundred: 75,000
  •  Eight grams per Guinean: 25,000
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Tuesday, 25 December 2018



BULLION:-

Gold rose 1 percent to scale a six-month peak on Monday as sliding stock markets and concerns about a global economic slowdown sapped risk sentiment, driving investors to seek safety in the precious metal. "Gold has continued to be firm here in the course of equity market weakness and an ongoing bevy of factors that are concerns for the market such as trade wars, interest rate hikes and others," said David Merge, director of metals trading at High Ridge Futures. Global stocks continued their downward trend for the seventh straight session as possibilities of a prolonged U.S. government shutdown and a deteriorating global economy unnerved investors. The dollar was pressured amid concerns that the U.S. Federal Reserve will keep raising rates into a weakening economy. USD/ the Fed are going to continue its aggressive stance, then our economy will slow down and a recession is a possibility. There is just so much negative news, that I cannot see gold do anything but go up," said Walter Pehowich, executive vice president of investment services at Dillon Gage Metals. Gold, seen as a safe investment during political and financial uncertainties, has risen over 9 percent from a 19-month low of $1,159.96 in mid-August.

METALS:-

London copper extended its losses to end at $5,959/mt on Monday and touched a three-month low of $5,941/mt during American trading hours. The SHFE 1902 contract fluctuated to end at 48,020 yuan/mt overnight. Most markets will shut for Christmas today, and SHFE copper is expected to continue to hover at lows with most transactions at 47,850-48,250 yuan/mt.As oil prices declined, LME nickel relinquished earlier gains to close flat at $10,875/mt on Monday. The SHFE 1905 contract edged down to close at 90,030 yuan/mt overnight. Investors were cautious overnight, with trading volumes thinning. SHFE nickel is expected to trade range bound today as the year-end eroded trading enthusiasm among investors. The SHFE 1905 contract is likely to trade between the five- and 10-day moving averages today with a range of 89,900-90,500 yuan/mt. Spot prices are seen at 90,500-93,500 yuan/mt.

ENERGY:-

Oil prices plunged more than 6 per cent to the lowest level in more than a year on Monday, pulling back sharply late in the session as fears of an economic slowdown rattled the market.US crude futures and global benchmark Brent hit their lowest levels since 2017 during the session, putting both benchmarks on track for losses of about 40 per cent in the fourth quarter. What happening in the stock market is raising fears that the economy is grinding to a halt and thereby will basically kill any future oil demand,  said Phil Flynn, an analyst at Price Futures Group in Chicago. They repricing in a slowdown in the economy if not a recession with this drop.  The fourth-quarter price decline is likely to cause producers to throttle back on their output, he said. A gauge of stocks worldwide hurtled toward an eighth straight decline on Monday as investors ignored the US Treasury secretary actions to reinforce confidence in the economy and US President Donald Trump criticized the Federal Reserve as the only problem our economy has. 


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Wednesday, 19 December 2018



BULLION:-

Gold steadied on Thursday, after declining about half a percent in the previous session as the U.S. Federal Reserve did not deliver as dovish a statement as some investors had expected. The Fed raised interest rates on Wednesday and noted that "some" rate hikes would be needed next year, a more aggressive stance than many expected. In a news conference, Fed Chairman Jerome Powell said the central bank would continue trimming its balance sheet by $50 billion each month, leaving open the possibility that continued strong data could force it to raise rates to the point where they start to brake the economy's momentum. U.S. benchmark Treasury yields fell to more than eight-month lows on Wednesday following Powell's statement, which spurred safety buying of U.S. government debt. Most banking, insurance and other financial firms in Britain would be cut off from the European Union if there is a no-deal Brexit, the bloc's executive body said on Wednesday. Italy's two-year bond yield hit its lowest in almost seven months on Wednesday, following news that Italy had reached a deal over its 2019 budget with the European Commission.

METALS:-

As shorts covered their positions after the US dollar index fell, LME copper crept to close at $6,065/mt on Wednesday. The SHFE 1902 contract rebounded to close at 48,440 yuan/mt overnight from a low of 48,140 yuan/mt. LME copper is expected to trade at $6,010-6,070/mt today and the SHFE 1902 contract is likely to trade at 48,200-48,500 yuan/mt. Spot premiums are seen at 20-120 yuan/mt.London nickel climbed to close at $10,980/mt on Wednesday. Its SHFE counterpart also gained overnight, as shorts aggressively cut their positions, ending at 90,200 yuan/mt. LME nickel is expected to hover around $10,900/mt today with the SHFE 1905 contract at 89,000-90,500 yuan/mt. Spot prices are seen at 89,500-96,000 yuan/mt.

ENERGY:-

Oil prices fell on Thursday to erase most of their gains from the day before, resuming declines seen earlier in the week amid worries about oversupply and the outlook for the global economy. "Wednesday's recovery was short-covering. Investors quickly moved their attention to deteriorating fundamentals in the oil markets including more signs of slowing economic growth next year, record production and the lack of confidence with OPEC's pledge to curb production," said Xi Jiarui, chief oil analyst at consultancy JLC. The Organization of the Petroleum Exporting Countries and other oil producers including Russia agreed this month to curb output by 1.2 million barrels per day (bpd) in an attempt to drain tanks and boost prices. Oil prices are down more than 30 percent from peaks seen in October. But the cuts will not happen until next month and production has been at or near record highs in the United States, Russia and Saudi Arabia. Saudi Arabia's energy minister, Khalid al-Falih, said he expected global oil stocks to fall by the end of the first quarter, but added that the market remained vulnerable to political and economic factors as well as speculation.


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Tuesday, 18 December 2018



BULLION:-

Gold prices edged higher to a more than five-month peak on Wednesday as a softer dollar supported the bullion while investor awaited cues on the rate hike trajectory of the U.S. central bank from its two-day policy meeting. Spot gold XAU= was up 0.1 percent at $1,250.20 per ounce, as of 0405 GMT, after hitting its highest since July 11 at $1,251.06 earlier in the session. "The market is largely in a holding pattern as everyone is focusing on the FOMC (Federal Open Market Committee) meeting... We see prices largely range-bound," said Benjamin Lu, a commodities analyst with Phillip Futures in Singapore. The Federal Reserve is widely expected to raise interest rates for the fourth time this year, but weak stock markets and slowing global growth may prompt it to tone down its stance on monetary tightening. If it sounds dovish, prices should consolidate and hold at $1,256 and if it breaks that we might see prices going much further to $1,265, Lu added. Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar, in which it is priced.

METALS:-

Following the slump in oil prices, both LME and SHFE copper tumbled overnight. LME copper fell past all short-term moving averages to end at $5,956/mt. As shorts aggressively added their bets, the SHFE 1902 contract saw losses accelerate in later trades of overnight and ended at 48,090 yuan/mt. We do not expect a substantial rebound in copper prices today. LME copper is likely to trade at $5,950-6,040/mt with the SHFE 1902 contract at 48,000-48,500 yuan/mt. Spot premiums are seen up to 80 yuan/mt. London nickel tumbled during later trades of Tuesday and closed at $10,840/mt. The SHFE 1905 contract slumped to close at 89,150 yuan/mt overnight as longs took profits after the contract climbed to a high of 91,380 yuan/mt. A widely expected Fed interest rate hike, fears of slowing global economic growth and downbeat economic data are likely to continue to weigh on LME nickel today. The SHFE 1905 contract is expected to trade at 88,500-90,000 yuan/mt with spot prices at 89,000-96,000 yuan/mt.

ENERGY:-

Oil prices rebounded on Wednesday after falling for the past three sessions with worries about oversupply and a slowing global economy keeping markets under pressure though sentiment may be shifting as falling equity markets seemed to stabilize. WTI prices are holding as "traders look for some solace in U.S. equity markets as risk sentiment appears to be stabilizing," said Stephen Innes, head of trading for Asia-Pacific at OANDA. "But we are far removed from any bullish flip in investor sentiment." Further adding to the oversupply concerns, the American Petroleum Institute said on Tuesday U.S. crude stocks rose unexpectedly last week, while gasoline inventories increased. If the build in crude stockpiles is confirmed by U.S. government data Wednesday, it will be the first increase in three weeks. EIA/S analysts said that upcoming output cuts led by the Organization of the Petroleum Exporting Countries (OPEC) had so far failed to stimulate the market as they were not due to kick in until next month.



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Thursday, 13 December 2018



BULLION:-

Gold prices steadied on Friday, after slipping to a week-low in the previous session, supported by the uncertainty around the Federal Reserve's next year's policy outlook, while the dollar strengthened on expectations of a rate hike next week. The dollar firmed against major counterparts as investor focus shifted to an expected U.S. interest rate hike next week, although gains are likely to be capped on greater uncertainty about next year's policy outlook. Asian shares were on the defensive as investors kept a wary eye on economic tensions between Washington and Beijing, while the euro was steady after the European Central Bank halted new bond purchases as expected. The number of Americans filing applications for jobless benefits tumbled to near a 49-year low last week, which could ease concerns about a slowdown in the labour market and economy. The risk of a U.S. recession in the next two years has risen to 40 per cent, according to a Reuterâ poll of economists who also found a significant shift in expectations toward fewer Federal Reserve interest rate rises next year. European Union leaders assured Prime Minister Theresa May on Thursday that the Brexit treaty she agreed last month but is struggling to get through UK parliament should not bind Britain forever to EU rules.


METALS:-

London copper pared earlier gains to close at $6,153/mt on Thursday. The SHFE 1902 contract came off from a high of 49,440 yuan/mt overnight, ending at 49,260 yuan/mt. As the US dollar strengthened, copper prices are expected to remain range bound at lows today. LME copper is likely to trade at $6,150-6,200/mt with the SHFE 1902 contract at 49,000-49,500 yuan/mt. Spot premiums are seen lower at 20-70 yuan/mt.London nickel initially fell to a low of $10,725/mt, just above the year-low of $10,720/mt on November 27. It then clawed back those losses to close 0.6% higher at $10,850/mt. The SHFE 1905 contract fluctuated to close 0.4% higher at 89,380 yuan/mt overnight. Market focus is largely attuned to the fundamentals as investors await an upcoming two-day meeting of the Federal Open Market Committee (FOMC), which is scheduled to take place on December 18-19. The recent improvement in spot trades limited losses in nickel prices. LME nickel is expected to hover around $10,800/mt today with the SHFE 1905 contract at 88,500-90,000 yuan/mt. Spot prices are seen at 89,000-96,500 yuan/mt.

ENERGY:-

Oil prices fell on Friday as investors cashed in gains of more than 2 percent made during the previous session on concerns demand may slump amid slowing economic growth, though there are still expectations for producer supply cuts to support prices. China, the world's second-largest economy and the largest crude importer, on Friday reported some of the slowest retail sales and industrial output growth in years for November, highlighting the risks of the country's trade dispute with the United States. Refinery throughput in November in China fell from October, which was the second-highest month on record, suggesting an easing in Chinese oil demand, though runs were 2.9 percent higher than a year earlier. Some support for prices remains because of the output cuts agreed between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers including Russia. That could create a supply deficit by the second quarter of next year, the International Energy Agency (IEA) said on Thursday. International benchmark Brent crude rose 2.2 percent on Thursday, while WTI climbed 2.8 percent.


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