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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, 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.



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.

Saturday, 15 September 2018


 The commodity trading is a commodity selling and buying through exchange. Where different commodities are online business Through this, most of the agricultural products and other raw products (like wheat, sugar, pulses, oil, cotton and metals) do business. If you want to do business yourself, then you have the facility of computer and internet.

Commodity trading is not like normal trading. All the trading here is done for the future. There are many commodity exchanges in India, through which the commodity turnover is done. Among these, MCX, NCDEX, NMCE and ICEX are prominent.


How to Start Commodity Business
To start a commodity business you must have a trading account with a computer and internet facility. Your trading account is to be opened with the same broker, who has subscribed to major commodity exchanges such as MCX, NCDEX etc. You will get a list of these brokers associated with these exchanges website.


How to open trading account
You must have a PAN card, address proof and bank account to open a trading account. Brokers charge you a fee for this account. But if you trade with the broker, then you can call it to call your call. After taking up all this, you increase understanding about commodity trading and make mock trading. After this you can start trading in commodity.



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, 13 September 2018


India is the world's largest gold consumption country. In this way, to meet its needs, every year 900-1000 tonnes of gold is imported. Whose negative impact is on the economy of the country. Whereas, about 20,000-24,000 thousand tonnes of gold is lying idle in homes, temples and trusts across the country. The government wants to get rid of this gold reservoir in the economy and put it in the economy. For this, the government is in the process of getting the gold monetization scheme and its draft note has been prepared. This scheme is expected to get cabinet approval soon.

Under the Gold Monetization scheme, the customer has to deposit his gold, jewelery and coins at the centers set by the government. After scrutinizing it, the customer will be issued a certificate equal to the quantity of gold after melting. On the basis of which the customer will be able to get interest by opening a Gold Savings account in the bank. The government will reduce the import of gold through this scheme, which can reduce its import by 10-20%. At the same time, the government expects that this scheme will reduce the import bill of gold. Which can be used to improve the economy and improve development. Gold Monetization Scheme will increase circulation of gold reserves in the country. Apart from this, the inclusion of Gold in CRR, SLR will increase the cash flows in the market.

Higher interest in gold monetization scheme

The government is preparing to launch the gold monetization scheme. His announcement was made by Finance Minister Jaitley in the Budget 2015-16. In fact, the government is going to resume the failed Gold Savings Scheme in 1999. Because at that time the scheme could not run due to low interest rate. The special feature of the new scheme is that people will get more interest on this. While the cost of sleep maintenance will also be left. At the same time, there is a plan to provide interest up to 2-3% for 1.5% and above for less than one year in the scheme. Apart from this, the customer depositing the gold in this scheme will start receiving interest from the same day on which he has taken it. Also, those who take the scheme will not have to give information about where the money has been raised to buy gold. For this, the maximum limit of gold has been fixed at 500 grams.

This is the proposal of Gold Monetization Scheme

Under this scheme, customers will have to deposit at least 30 grams of gold. In this, the customer will be able to keep gold coins and jewelery with the banks. Instead, it will be given the equivalent certificate of gold. On the basis of that certificate, the customer will be able to obtain interest by opening his Gold Savings account in the bank. The customers who will be associated with this scheme, by melting gold and jewelery in the other way, the government will re-use it to the market for its use. Whereas under this scheme, the customer has to deposit his gold with the bank for a minimum of one year. This scheme will also benefit the jewelers, they can also take a loan on their metal account.

How to get interest under this scheme

According to the draft of Gold Monetization Scheme of the Government, if the customer deposited 100 grams of gold and got interest of one per cent on it. So he will get the same price as 101 grams of gold. At the same time, it will be exempt from income tax, wealth tax, capital gains tax etc. on the earnings it earns. If a customer wants to get out of this scheme before time, then the amount will be paid according to the market price. While customers will also have the right to get paid gold as a gold or cash deposit under the scheme.


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.

Sunday, 9 September 2018



BULLION:-

Gold held on to a small loss from the previous session on Monday, amid expectations of a U.S. Federal Reserve interest rate hike in September and fears of escalating trade tensions between the United States and China. U.S. jobs growth accelerated in August, with wages notching their largest annual increase in nine years, strengthening views the economy was so far weathering the Trump administration’s escalating trade war with China. The stronger-than-expected payrolls data cemented expectations that the U.S. Fed will raise interest rates in September, in what would be its third hike this year. The Federal Reserve should keep raising U.S. interest rates until mid-2019, and only then needs to take a decision on when it ought to stop, Dallas Fed President Robert Kaplan suggested on Friday. U.S. President Donald Trump warned on Friday he was ready to slap tariffs on virtually all Chinese imports into the United States, threatening duties on another $267 billion of goods on top of $200 billion in imports primed for levies in coming days. Central banks will be in focus with the European Central Bank and Bank of England both meeting this week. The ECB is expected to signal it is ready to start tapering bond purchases, but President Draghi is likely to sound cautious after a run of mediocre to softening euro zone data. Hedge funds and money managers increased their bearish stances in COMEX gold and silver contracts to the biggest on record in the holiday-shortened week to Sept. 4, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday

METALS:-

London copper was trading steady on Monday morning after it registered its second weekly loss as an intensifying trade war between the United States and top metals consumer China raised concerns over demand. For the week, LME and Shanghai copper are down 1.7 percent. U.S. President Donald Trump has said he is prepared to quickly ramp up the trade war with China and has told aides he is ready to impose fresh tariffs on $200 billion worth of Chinese imports as soon as a public comment period on the plan ends. China will be forced to retaliate if the United States implements any new tariff measures, China’s commerce ministry warned on Thursday. Road access to MMG Ltd’s Las Bambas copper mine in Peru, which was blocked by protesters last week, has been restored and company logistics are operating normally, the company said late on Wednesday. European customers will avoid deals with Russia’s United Company Rusal, under U.S. sanctions, when the industry meets in Berlin next week to seal 2019 metal supply agreements, three sources familiar with the discussions said. On-warrant stocks of copper available to the market in LMEregistered warehouses rose by 850 tonnes to 147,450 tonnes but are still down from more than 234,000 tonnes in mid-August, signalling a tighter market. Stockpiles in Shanghai Futures Exchange (ShFE) warehouses have fallen to 136,051 tonnes from more than 300,000 tonnes in April.

ENERGY:-

Oil prices rose on Monday as US drilling for new production stalled and as the market eyed tighter conditions once Washington's sanctions against Iran's crude exports kick in from November. US energy companies cut two oil rigs last week, bringing the total count to 860, energy services firm Baker Hughes said on Friday. The US rig count has stagnated since May, after staging a recovery since 2016, which followed a steep slump the previous year amid plummeting crude prices. Outside the United States, new US sanctions against Iran's crude exports from November were helping push up prices. Several major Iran customers like India, Japan and South Korea were already cutting back on Iran crude. While Washington exerts pressure on other countries to fall into line and also cut imports from Iran, it is also urging other major producers to raise their output in order not to create too strong a price spike. US Energy Secretary Rick Perry will meet counterparts from Saudi Arabia and Russia on Monday and Thursday, respectively, as the Trump administration seeks the world's biggest exporter and producer to keep output up. One key question going forward is how demand develops amid the trade dispute between the United States and China, as well as general emerging market weakness.



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, 6 September 2018



BULLION:

Gold trading steady above $1200/Oz on Friday as the dollar fell against the yen on fears that US President Donald Trump would take up trade issues with Japan as the markets braced for another round of U.S. tarriffs on China. The dollar extended losses against the yen on Friday after CNBC television reported on Thursday that U.S. President Donald Trump told a Wall Street Journal columnist he might take on trade issues with Japan. Another big worry for investors was the end of a public consultation period over trade, after which U.S. President Donald Trump could impose tariffs on an additional $200 billion of Chinese goods. China’s commerce ministry warned that the country would retaliate against any new tariff measures.. Trump had said on Wednesday that the United States was not yet ready to come to an agreement with China. Investors also awaited news from U.S.-Canada talks about revamping the North American Free Trade Agreement (NAFTA). A few stubborn issues stood in the way of a deal, including dairy, protection for media companies, and how to solve future trade disputes. Markets will be closely watching a U.S. employment report due on Friday for clues on the pace of interest rate increases by the Federal Reserve. On Thursday, the ADP National Employment Report showed private payrolls increased by 163,000 jobs last month. Economists polled by Reuters had forecast private payrolls increasing by 190,000 jobs last month. Emerging markets have been hit by financial crises in Argentina and Turkey. In Indonesia, the central bank has intervened in recent weeks to stem the rupiah’s slide.

METALS:-

London copper slid on Friday with the market facing a second week of losses on concerns about demand, as a trade war between the United States and top metals consumer China intensifies. Copper has risen for the past two sessions. Relatively positive economic data in Europe helped boost sentiment in the market. U.S. President Donald Trump has said he is prepared to quickly ramp up the trade war with China and has told aides he is ready to impose tariffs on $200 billion more on Chinese imports as soon as a public comment period on the plan ends. China will be forced to retaliate if the United States implements any new tariff measures, China’s commerce ministry warned on Thursday. Road access to MMG Ltd’s Las Bambas copper mine in Peru, which was blocked by protesters last week, has been restored and company logistics are operating normally, the company said late on Wednesday. European customers will avoid deals with Russia’s United Company Rusal, under U.S. sanctions, when the industry meets in Berlin next week to seal 2019 metal supply agreements

ENERGY:-


Oil trading flat on Friday after it declined on Thursday, with US prices at their lowest settlement in more than two weeks, pressured by concerns over a potential decline in global demand on the back of the U.S. trade dispute with China and economic woes in emerging markets. Price pressures also included sizable weekly gains in U.S. stockpiles of gasoline and distillates, which include heating oil, outweighing support from a hefty decline in domestic crude inventories as well as ongoing expectations for tighter crude supplies tied to U.S. sanctions on Iranian oil that begin in early November. Trade tensions have also been a drag on energy this week as the threat of an economic slowdown due to a new tariffs has weighed on commodities broadly. The Energy Information Administration reported Thursday that domestic crude supplies fell by 4.3 million barrels for the week ended Aug. 31. That was larger than the 2.5 million-barrel fall expected by analysts polled by reuters and the decrease of 1.2 million barrels reported by the American Petroleum Institute Wednesday. Supply data were released a day later than usual due to Monday’s Labor Day holiday. Gasoline stockpiles rose 1.8 million barrels for the week, while distillate stockpiles added 3.1 million barrels, according to the EIA. Reuters survey forecast a supply decline of 1.5 million barrels for gasoline, but distillates were expected to be unchanged.



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.

Wednesday, 5 September 2018

Gold review: Greeenback remains the focal point. 

The metal's biggest nemesis - the US dollar - picked up a bid yesterday, possibly due to a rise in the 10-year treasury yield to a three-week high of 2.90 percent. The USD exchange rate, as represented by the dollar index, clocked a 14-day high of 95.74 yesterday, and was last seen trading at 95.29. The pullback from the highs seen yesterday has likely helped the yellow metal recover from $1,190 to $1,194. The data, due for release this Friday, is expected to show the average hourly earnings rose 2.8 percent year-on-year in August, following a 2.7 percent rise in July. 

Market worries over US-Sino trade conflicts and a stronger US dollar accounted for the losses.

As the US dollar gained on support from strong US ISM manufacturing data, the SHFE 1811 contract lost 650 yuan/mt to close at 46,940 yuan/mt. LME copper slumped to test support at the $5,800/mt level, and dipped to approach the Bollinger lower band. Market worries over US-Sino trade conflicts and a stronger US dollar accounted for the losses. With potential fresh tariffs from the US on $200 billion worth of Chinese goods, longs should remain cautious when they enter the market today. Spot premiums are likely at 150-200 yuan/mt today.

Market concerns over a trade war and a surge in supplies also weighed on the contract. 

LME nickel slumped to a low of $12,375/mt as the US dollar gained. It closed at $12,490/mt and LME stock lost 510 mt to 237,984 mt. The SHFE 1811 contract received support at the 102,000 yuan/mt level after it tumbled to a low of 102,010 yuan/mt as shorts added. Market concerns over a trade war and a surge in supplies also weighed on the contract. We expect LME nickel to hover weakly around $12,500/mt, and the SHFE contract at 102,000-103,500 yuan/mt today. Spot prices are set at 102,500-108,000 yuan/mt.

Oil dips as U.S. storm threat eases; Iran sanctions loom. 

 Oil prices fell on Wednesday, partly reversing a strong jump from the previous day, as the impact of a tropical storm on U.S. Gulf coast production was not as strong as initially expected. Prices jumped the previous day as dozens of U.S. oil and gas platforms in the Gulf of Mexico were shut in anticipation of tropical storm Gordon hitting the region. But the storm was shifting eastward late on Tuesday, reducing its threat to producers on the western side of the Gulf and most Gulf Coast refineries. Innes, head of trading for Asia/Pacific at futures brokerage OANDA, said many crude futures traders were "caught long and wrong over the past 24 hours due to tropical storm buying frenzy", adding that "prices pulled back considerably as the magnitude of the storm suggests production losses will be limited."


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, 4 September 2018



BULLION:-

Gold on Wednesday held near one-week lows touched in the previous session, as global trade tensions and emerging market concerns boosted demand for the U.S dollar, undermining the metal’s safe haven status. Emerging markets stocks and currencies were under added pressure on concerns about inflation in Turkey and after data showed South Africa had slumped into recession in the second quarter. U.S. President Donald Trump could follow through on plans to impose levies on $200 billion more of Chinese imports after a public comment period on his proposed new tariffs on Chinese goods is set to end on Thursday. US-Canada trade talks were expected to resume on Wednesday after the last round ended on Friday with no deal to revamp the North American Free Trade Agreement (NAFTA). Trump has told Congress he would sign a bilateral trade pact with Mexico. Gold has lost about 8.5 percent this year amid rising U.S. interest rates, trade disputes and the Turkish currency crisis, with investors parking their money in the dollar. US Treasury yields rose to three week highs on Tuesday after data showed that U.S. manufacturing activity accelerated to a more than 14-year high in August, and on heavy corporate debt supply. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 1.09 percent to 746.92 tonnes on Tuesday from Friday. ndia raised gold holdings by 6.8 tonnes to 573.1 tonnes in 2018 July, data from International Monetary Fund showed.

METALS:-

Shanghai copper hit its lowest in more than a year overnight and was down for a fifth straight day in early trade on Wednesday, tracking a 2.6 percent drop in London copper overnight as U.S.-China trade tensions continue to weigh on metals prices. Global miner BHP said on Wednesday it would spend $35.2 million to buy a 6.1 percent stake in SolGold PLC, the majority owner and operator of the promising Cascabel copper-gold project in Ecuador. A company owned by Russian billionaire Alisher Usmanov's holding company said on Tuesday it had started construction of a massive mining and metallurgical plant at the Udokan copper deposit in a remote region in eastern Siberia. Some warehouse firms want the London Metal Exchange to change its rules for delivering material so as to allow longer queues and boost revenues undermined by falling stocks. A vote by striking workers at Alcoa's giant west Australian operations will close on Thursday, with the union anticipating a strong "no" vote that could prolong the four-week old strike. Nickel hit its weakest since January on Tuesday, leading London metals lower as concerns over rising trade tensions between China and the United States benefited the dollar. Prices are “weighed down by an increase in nickel ore inventory at China and rising stainless steel inventory. The city of Binzhou in eastern China’s Shandong province, home to top aluminium producer China Hongqiao Group, is planning five new projects to support development of a high-end aluminium industry, according to a local government document.

ENERGY:-

Oil prices fell on Wednesday, partly reversing a strong jump from the previous day, as the impact of a tropical storm on U.S. Gulf coast production was not as strong as initially expected. Prices jumped the previous day as dozens of U.S. oil and gas platforms in the Gulf of Mexico were shut in anticipation of tropical storm Gordon hitting the region. But the storm was shifting eastward late on Tuesday, reducing its threat to producers on the western side of the Gulf and most Gulf Coast refineries. There was also a typhoon hitting Japan's east coast overnight, with some damage to oil refineries in the Osaka region, although operators said operations were not significantly affected. Prices also hit by caution on the risks to oil demand if turmoil in emerging markets starts hitting economic growth. Emerging markets are a key driver of global oil demand growth, but several of them - especially Turkey and Argentina but also Indonesia and South Africa - have seen their currencies and stock markets come under pressure in recent months amid inflation, a strong U.S.-dollar and escalating global trade disputes.




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.

Gold declines as rising global trade tensions buoy dollar. 

Gold inched lower on Friday, as the dollar stayed firm on expectations of rising interest rates amid lingering Sino-US trade tensions, and the yellow metal was headed for its fifth straight monthly decline. Spot gold was down 0.1 per cent at $1,198.66 an ounce at 0029 GMT. Prices were on track for fifth straight monthly decline, the metal's longest losing streak since early 2013. They are down about 2 per cent so far this month. US gold futures were mostly steady at $1,204 an ounce. US President Donald Trump is prepared to quickly ramp up a trade war with China and has told aides he is ready to impose tariffs on $200 billion more in Chinese imports as soon as a public comment period on the plan ends next week, Bloomberg News reported on Thursday. Policy and regulatory certainty in South Africa could potentially add 122 billion rand ($8 billion) in capital expenditure to the struggling mining sector.

 A looming trade war is likely to limit rebounds in copper prices in the short term.

As the US dollar climbed above 95, LME copper fell below support at $6,000/mt while the SHFE 1811 contract stood firm above 48,000 yuan/mt. However, it will remain difficult for the contract to rise above the 20-day moving average given pressure from shorts. A weak euro, expectations of further interest rate hikes by the US Federal Reserve, and a looming trade war are likely to limit rebounds in copper prices in the short term. Spot premiums are likely to be seen at 50 yuan/mt as lower prices prompt downstream purchases.

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

Large amount of Norilsk nickel entered the domestic market last Friday while downstream demand rose slightly, and this lowered nickel prices. Surging shorts dragged the SHFE 1811 contract to a low around 105,000 yuan/mt. It closed at 105,090 yuan/mt with open interests up 63,000 lots to 370,000 lots. LME nickel fell sharply, after it rebounded, to the lowest in seven months below the $12,800/mt level. We expect LME nickel to hover weakly around $12,750/mt today, with the contract trading at 104,500-106,000 yuan/mt. Spot prices are likely to trade at 105,000-108,500 yuan/mt.

Oil falls on rising output from OPEC and United States.

 Oil prices fell on Monday amid rising supply from OPEC and the United States, outweighing concerns that falling Iranian output will tighten markets once U.S. sanctions bite from November. Output from the producer cartel of the Organization of the Petroleum Exporting Countries (OPEC) rose by 220,000 barrels per day (bpd) between July and August, to a 2018-high of 32.79 million bpd, a Reuters survey found. Output was boosted by a recovery in Libyan production and as Iraq's southern exports hit a record. U.S. drillers added oil rigs for the first time in three weeks, energy services firm Baker Hughes reported on Friday, increasing the rig count by 2 units to 862. high rig count has helped lift U.S. crude oil production C-OUT-T-EIA by more than 30 percent since mid-2016, to 11 million bpd. 


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 edged lower on Monday during Asian market trades, with prices breaking back below the psychological $1,200 level as the dollar rose on the back of worries about escalating global trade tensions. US markets are closed due to US labor day holiday. Markets are nervous about the escalating trade conflict between the United States and China, after U.S. President Donald Trump said last week that he wanted to move ahead on a plan to impose tariffs on Chinese imports worth $200 billion. Trump said on Saturday there was no need to keep Canada in the North American Free Trade Agreement and warned Congress not to meddle with the trade negotiations or he would terminate the trilateral trade pact altogether. Gold prices have fallen about 8 percent so far this year amid rising U.S. interest rates, international trade disputes and the Turkish currency crisis, with investors preferring the dollar as a safe-haven. The dollar index, which measures the greenback against a basket of currencies, was up 0.1 percent at 95.204. Hedge funds and money managers cut their net short positions in COMEX gold contracts in the week to Aug. 28 for the first time in more than a month, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday. Holdings of SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, fell 0.35 percent to 755.16 tonnes on Friday from Thursday. The U.S. Mint sold 21,500 ounces of American Eagle gold coins in August, down 38.6 percent from the previous month.

METALS:-
London copper was sitting at its lowest in 10 days on Monday as jitters over renewed trade tensions between the United States and China weighed on risk appetite and pushed up the dollar. China’s manufacturing activity grew at the slowest pace in more than a year in August, with export orders shrinking for a fifth month and employers cutting more staff, a private survey showed on Monday. China is still determined to reform and wants to work with all parties to build an open world economy, Chinese President Xi Jinping said on Sunday, reiterating Beijing’s message amid a bitter trade war with Washington. China will strictly prevent ‘haphazard investment and redundant development’ in the automobile industry, apparently referring to proposed rules on automakers’ investments in new capacity. Copper production at Codelco, Chile’s state-owned copper mining company, rose 2 percent in the first half of 2018 to 813,000 tonnes, Chief Executive Nelson Pizarro said on Friday. Hedge funds and money managers trimmed their net short positions in COMEX copper futures and options, in the week to Aug. 28 U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.

ENERGY:-
Oil prices dipped on Monday amid rising supply from OPEC and the United States, although expectations of falling Iranian output once US sanctions bite from November provided some support. Output from the producer cartel of the Organization of the Petroleum Exporting Countries (OPEC) rose by 220,000 barrels per day (bpd) between July and August, to a 2018-high of 32.79 million bpd, a Reuters survey found. Output was boosted by a recovery in Libyan production and as Iraq's southern exports hit a record. Meanwhile, US drillers added oil rigs for the first time in three weeks, energy services firm Baker Hughes reported on Friday, increasing the rig count by 2 units to 862. The high rig count has helped lift US crude oil production by more than 30 per cent since mid-2016, to 11 million bpd. Saudi Arabia will report August crude oil production of 10.424 million b/d, an OPEC source told S&P Global Platts on Friday. The figure represents a 136,000 b/d increase from July, when Saudi Arabia, OPEC's largest producer and the world's largest crude exporter, self-reported production of 10.288 million b/d. The kingdom supplied to market 10.467 million b/d in August, the source added on condition of anonymity. That means the sum of crude exported to customers, consumed by Saudi refineries and burned by domestic power plants, slightly exceeded the amount of crude that was pumped out of the ground in the month, indicating a draw of barrels held in storage.



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