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

Sunday, 9 December 2018


BULLION:-

Gold traded firm near a five-month peak hit early on Monday, supported by a disappointing U.S. jobs data that fuelled speculation that the Federal Reserve may stop raising interest rates sooner than expected. The dollar slipped against the yen and the euro, while stocks extended their slump as worries over U.S.-China trade tensions battered investor sentiment. Nonfarm payrolls increased by 155,000 jobs in November, while economists polled by Reuters had forecast payrolls increasing by 200,000 jobs. The U.S. central bank is flagging a turning point in monetary policy, as a Fed policymaker on Friday backed interest rate hikes in the "near term" but nodded to increasingly less certainty ahead. U.S.-China trade negotiations need to reach a successful end by March 1 or new tariffs will be imposed, U.S. Trade Representative Robert Lighthizer said on Sunday, clarifying there is a "hard deadline" after a week of seeming confusion among President Donald Trump and his advisers

METALS:-

London copper fluctuated to close slightly higher at $6,149/mt on Friday. Despite a positive start, the SHFE 1902 contract weakened on Friday night, with pressure from the daily moving average. It closed at 49,060 yuan/mt. Open interest for the SHFE copper complex remained below 500,000 lots, suggesting limited confidence among investors. LME copper is expected to trade at $6,120-6,170/mt today with the SHFE 1902 contract at 48,900-49,200 yuan/mt. Spot premiums are seen at 150-420 yuan/mt. Tight supplies are likely to keep buyers chasing high-quality materials. London nickel fluctuated to close higher at $10,955/mt on Friday. The SHFE 1905 contract fell to close at 89,350 yuan/mt on Friday night after climbing to a high of 90,140 yuan/mt. LME nickel is expected to hover around $10,900/mt today with the SHFE 1905 contract at 88,500-90,000 yuan/mt. Spot prices are seen at 88,500-98,000 yuan/mt.

ENERGY:-

ONGC has sold a cargo of Russian Sokol crude cargo at a similar premium from the previous month, trade sources said on Monday. The cargo, loading on Feb. 10 to 16, was sold to a European trading house at a premium of $4.80 a barrel above Dubai quotes, they said. The deal marked the first February Sokol cargo to trade this month. The premium surprised the sources as they were expecting Sokol premiums to fall in line with other light sour grades sold to Asia and to reflect weaker refining margins. International oil prices rose on Monday, extending gains from Friday when producer club OPEC and some non-affiliated producers agreed a supply cut of 1.2 million barrels per day (bpd) from January. Prices surged on Friday after the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers including heavyweight Russia announced they would cut oil supply by 1.2 million bpd, with an 800,000 bpd reduction planned by OPEC-members and 400,000 bpd by countries not affiliated with the group.



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Thursday, 6 December 2018


BULLION:-

Gold prices rose slightly on Friday and were headed for their best week in 15, as the dollar weakened following a decline in U.S. Treasury yields, while investors awaited U.S. nonfarm payroll data for clues about the health of the world's top economy. Atlanta Federal Reserve bank president Raphael Bostic on Thursday said he felt the Fed should continue raising rates towards a "neutral" level, noting that despite recent market volatility and increasing uncertainty, he did not see "any indications of a material weakening in the macroeconomic data at the moment." The U.S. economy is "performing very well overall," Federal Reserve Chairman Jerome Powell said, capping a week of widespread market nervousness with a reminder that the U.S. economy continues to expand. Asian share markets tried to find their footing on Friday as speculation the Federal Reserve might be "one-and-done" with U.S. rate hikes helped salve some wounds after a punishing week.

METALS:-

London copper slid to a low of $6,080/mt on Thursday as shorts added their positions after the contract climbed to a high of $6,120.5/mt. LME copper later rebounded to end at $6,134.5/mt. After opening in the red, the SHFE 1902 contract fluctuated overnight and closed at 48,950 yuan/mt. As both LME and SHFE copper have fallen below all short-term moving averages, copper prices are expected to remain weak and trade range bound at lows today. LME copper is likely to trade at $6,080-6,120/mt today with the SHFE 1902 contract at 48,600-49,000 yuan/mt. Spot premiums are seen at 120-320 yuan/mt. London nickel slumped on Thursday and ended at $10,860/mt. After opening lower, the SHFE 1901 contract fell to 88,640 yuan/mt overnight as shorts added and longs cut their bets. It clawed back some losses in later trades and closed at 89,010 yuan/mt. With worries over an escalation in the US-China trade tensions on Huawei CFO arrest, We expect LME nickel to weaken when hovering around $10,900/mt today and the SHFE 1901 contract to trade at 88,500-90,000 yuan/mt. Spot prices are seen at 88,500-98,000 yuan/mt.

ENERGY:-

Oil prices fell on Friday, pulled down by OPEC's decision to delay a final decision on output cuts, awaiting support from non-OPEC heavyweight Russia. The declines came after crude slumped by almost 3 percent the previous day, with the Organization of the Petroleum Exporting Countries (OPEC) ending a meeting at its headquarters in Vienna, Austria, on Thursday without announcing a decision to cut crude supply, instead preparing to debate the matter on Friday.Has decided to meet Friday again...(as) Russia remains the sticking point," said Stephen Innes, head of trading for Asia/Pacific at futures brokerage Oanda in Singapore. "We are beginning to witness the outline of the next iteration of production cuts, with OPEC conforming to cut its own production by around 1 million barrels per day, with the cartel lobbying non-OPEC members to contribute more," Japanese bank MUFG said in a note. Oil producers have been hit by a 30-percent plunge in crude prices since October as supply surges just as the demand outlook weakens amid a global economic slowdown. Output from the world's biggest producers - OPEC, Russia and the United States - has increased by 3.3 million bpd since the end of 2017, to 56.38 million bpd, meeting almost 60 percent of global consumption.


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Wednesday, 5 December 2018



BULLION:-

U.S. stock futures tumbled on Thursday and Asian markets followed after Canadian authorities arrested a top executive of Chinese tech giant Huawei Technologies, fanning fears of further tensions between China and the United States. MKTS/GLOB The dollar, which has enjoyed an unrivalled surge against its peers this year, will be undermined in 2019 on increasing concerns about slowing U.S. economic growth, a Reuters poll of foreign exchange strategists showed. Tariff-driven price increases have spread more broadly through the U.S. economy, though on balance inflation has risen at a modest pace in most parts of the country, the Federal Reserve said on Wednesday in its latest report on the economy. China expressed confidence on Wednesday that it can reach a trade deal with the United States, a sentiment echoed by U.S. President Donald Trump a day after he warned of more tariffs if the two sides could not resolve their differences.

METALS:-

London copper rebounded to close at $6,193.5/mt overnight as shorts cut their bets after the contract fell to a low of $6,158.5/mt. LME copper snapped a four-day losing streak and came under pressure at the five- and 10-day moving averages. With a lower open, the SHFE 1902 contract fluctuated to close at 49,310 yuan/mt overnight. This lowered it below all short-term moving averages and the middle Bollinger band. Open interest for the SHFE copper complex decreased below 500,000 lots, reflecting limited confidence among investors. LME copper is expected to trade at $6,140-6,190/mt today with the SHFE 1902 contract at 49,100-49,400 yuan/mt. Spot premiums are seen at 130-300 yuan/mt. In the physical market, sellers were reluctant to offload cargoes and these tightened supplies across the market. London nickel rebounded from earlier lows and closed at $11,220/mt overnight. After initially falling to a low of 90,250 yuan/mt, the SHFE 1901 contract clawed back losses and ended at 91,250 yuan/mt overnight. Investors remained cautious on lingering concerns over US-China trade.  

ENERGY:-


Oil prices fell along with weak stock markets on Thursday, but trading was tepid ahead of a meeting by producer group OPEC that is expected to result in a supply cut aimed at draining a glut that has pulled down crude prices by 30 percent since October. Traders said oil prices were being weighed down by weak global financial markets, which saw stock markets tumble on Thursday. Early October, crude oil has lost around 30 percent of its value amid surging supply and fears that an economic downturn will erode fuel demand. The Organization of the Petroleum Exporting Countries (OPEC) is meeting at its headquarters in Vienna, Austria, on Thursday to decide its production policy. Led by Saudi Arabia, OPEC's crude oil production PRODN-TOTAL has risen by 4.1 percent since mid-2018, to 33.31 million barrels per day (bpd). Oil output from the world's biggest producers - OPEC, Russia and the United States - has increased by a 3.3 million bpd since the end of 2017, to 56.38 million bpd, meeting almost 60 percent of global consumption. PRODN-TOTAL C-RU-OUT C-OUT-T-EIA.

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Monday, 3 December 2018


BULLION:-

Gold prices rose on Tuesday, after hitting a more than one-month high earlier in the session, as the dollar stumbled after the United States and China agreed to a temporary truce in their trade conflict that rattled global markets. "Dollar weakness is primarily driving gold prices higher," said Benjamin Lu, a commodities analyst at Phillip Futures. "Markets seem little doubtful about the success of this Sino-U.S. trade war truce... It seems a bit cautious," Lu added. The dollar weakened against its major peers on Tuesday, as the thaw in trade tensions between Washington and Beijing supported investor confidence though concerns about the fragility of the truce capped wider gains in risk assets. Analysts now expect market focus to move to the U.S. Federal Reserve's monetary policy. Markets are expecting a fourth rate hike at its Dec. 18-19 meeting. Gold has fallen about 10 percent from a peak in April as investors preferred the dollar as safe haven, with U.S.-China trade friction unfolding against a backdrop of higher U.S. interest rates.

METALS:-

London copper fell to close at $6,250/mt overnight after it climbed to a high of $6,328.5/mt. Despite an initial increase to a high of 50,370 yuan/mt, the SHFE 1902 contract fell into negative territory to close at 49,910 yuan/mt overnight. Copper prices are expected to stay at highs as a ceasefire in the US-China trade war, the Fed’s dovish tone and expected oil supply cuts prompt investors to shun safe-haven US currency and to turn to riskier assets. LME copper is likely to trade at $6,230-6,280/mt today with the SHFE 1902 contract at 49,800-50,250 yuan/mt. Spot premiums are seen at 100-200 yuan/mt. London nickel fluctuated to close at $11,195/mt overnight. The SHFE 1901 contract regained some losses to end at 91,500 yuan/mt after it fell to a low of 91,080 yuan/mt. Weak domestic fundamentals could provide SHFE nickel with limited upward momentum. We expect LME nickel to hover around $11,200/mt today with the SHFE 1901 contract at 91,000-92,500 yuan/mt. Spot prices are seen at 91,500-100,500 yuan/mt.

ENERGY:-


Oil prices rose on Tuesday, extending strong gains from the previous day amid expected OPEC-led supply cuts and a mandated reduction in Canadian output. The 90-day truce in the trade dispute between the United States and China was also still supporting markets, traders said. Both crude benchmarks climbed by around 4 percent the previous session after Washington and Beijing agreed a truce in their trade disputes and said they would negotiate for 90 days before taking any further action. Middle East dominated Organization of the Petroleum Exporting Countries (OPEC) will on Dec. 6 meet at its headquarters in Vienna, Austria, to agree a joint output policy. "A cut in OPEC and Russia production of 1.3 million barrels per day (bpd) will be required to reverse the ongoing counter-seasonally large increase in inventories," the bank said. It added that it expected a joint effort by OPEC and Russia to withhold supply to push Brent oil prices "above the mid-$60 per barrel level".


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Wednesday, 28 November 2018


BULLION:-
Gold prices firmed on Thursday as the dollar faltered following dovish comments from U.S. Federal Reserve Chair Jerome Powell, calming investor concerns over the pace of rate hikes. "The dovish Fed stance was relatively constructive from pure dollar trade perspective and it could edge off the dollar and continue to do so until the year end, which is quite significant for gold prices," said Stephen Innes, APAC trading head at OANDA in Singapore. The dollar slipped from a two-week high on Wednesday after Powell said interest rates are just below neutral, raising expectations that the U.S. central bank is closer to the end of its rate hike cycle. USD/ weaker dollar helps other local currencies such as China and India get back in the game, which could add to gold's lustre," Innes added. A weaker greenback makes the dollar-denominated gold cheaper for other non-U.S. buyers.

METALS:-
Copper led gains across base metals overnight, as the US dollar dipped from two-week highs after the US Federal Reserve described interest rates as "just below" the neutral rate. LME copper rebounded back above all moving averages, and above the Bollinger middle band. It closed at $6,251.5/mt after surged to a high of $6,269/mt. The SHFE copper dominant contract changed to the 1902 contract overnight, which rallied above the five- and 60-day moving averages on longs’ support. We expect it to trade at 49,200-49,600 yuan/mt with its LME counterpart trading at $6,180-6,230/mt today. Spot premiums are set at 70-130 yuan/mt. As a weaker US dollar grew confidence across longs, LME nickel broke pressure at $10,860/mt and rose to a high of $10,880/mt after hovering around the daily moving average overnight. The SHFE 1901 contract registered a slower growth, pressured by domestic slow consumption.  

ENERGY:-
Oil prices ticked higher on Thursday on optimism that trade talks at the G20 meeting could aid the global economy and improve the demand outlook, while an increase in U.S. crude inventories to their highest in a year curbed gains. "We have seen huge increases in supply and the demand picture is in question. However, we might see some movement on global trade issues at the G20 meeting which starts on Friday," said Michael McCarthy, chief strategist at CMC Markets and Stock broking. Investors in commodity markets are looking ahead to the meeting of leaders of the Group of 20 nations (G20), the world's biggest economies, on Nov. 30 and Dec. 1, with the U.S.-China trade war at the top of the agenda. U.S. President Donald Trump is open to a trade deal with China but is also prepared to hike tariffs on imports from the country if there is no breakthrough on longstanding trade issues during a dinner on Saturday with Chinese leader Xi Jinping, White House economic adviser Larry Kudlow said on Tuesday. Said China will widen market access for foreign investors and step up protection of intellectual property rights. Rising supplies are keeping a lid on prices.


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Monday, 26 November 2018


BULLION:-

Gold prices inched lower on Tuesday as the dollar steadied amid fears of a slowdown in global economic growth and increasing pessimism due to a likely worsening of U.S-China trade dispute ahead of the G20 meet. Asian shares battled to extend a global rebound on Tuesday after U.S. President Donald Trump seemed to quash hopes of a trade truce with China, dampening risk appetite across the region Trump said on Monday he expected to move ahead with raising tariffs on $200 billion in Chinese imports to 25 percent from the current 10 percent and repeated his threat to slap tariffs on all remaining imports from China. Prime Minister Theresa May warned on Monday that Britain would be thrust into the unknown if parliament rejects the Brexit deal she has negotiated with the European Union, as lawmakers from all sides lined up to criticize the agreement. The euro zone has lost some growth momentum but this was mostly normal and not enough to derail plans by the European Central Bank to dial back stimulus further, ECB President Mario Draghi and two of his top lieutenants said on Monday.

METALS:-

London copper received support at the 20- and 60-day moving averages, after it tested support at $6,155/mt several times overnight as the US dollar strengthened. It settled 0.07% higher on the day and may trade at $6,160-6,210/mt today. The SHFE 1901 contract rallied from a low of 48,650 yuan/mt, but failed to stand above the Bollinger middle band. It closed at 49,290 yuan/mt, with open interests up 7,934 lots to 527,000 lots. A technical rebound is expected in the contract in the short run. It will trade at 48,900-49,400 yuan/mt today, with spot premiums firm at 60-130 yuan/mt. A buoyant mood ahead of this week's G-20 summit in Argentina bolstered LME nickel and the SHFE 1901 contract on the day. A stronger US dollar on expectations of further interest rate hikes limited the increase. We expect LME nickel to hover weakly around $10,850/mt, with the 1901 contract trading at 88,000-90,000 yuan/mt today. Spot prices are seen at 89,000-100,000 yuan/mt today.

ENERGY:-

Oil markets were trading cautiously on Tuesday, with mixed signals coming from top exporter Saudi Arabia ahead of an OPEC meeting in Austria next week. Saudi Arabia raised oil production to an all-time high in November, an industry source said on Monday, pumping 11.1 million to 11.3 million barrels per day (bpd) during the month. Prices have lost almost a third of their value since early October, weighed down by an emerging supply overhang and widespread financial market weakness is on a slippery slope," said Norbert Ruecker, head of commodity research at Swiss bank Julius Baer. Ruecker said the weak sentiment "follows a surprisingly swift and pronounced change in the market mood from shortage fears to glut concerns," while the world economy was also slowing down. Traders said they were awaiting the outcome of the Group of 20 (G20) meeting in Buenos Aires and also the result of a meeting of the Organization of the Petroleum Exporting Countries (OPEC).


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Tuesday, 20 November 2018


BULLION:-

Gold prices were steady on Wednesday, after moving in a tight range in holiday-thinned trading, holding above the 1,220 level as the dollar was pressured by weak U.S. economic data and a clouded interest rate outlook. Spot gold was little changed at $1220.20 per ounce at the time of writing. The dollar index, which measures the greenback against a basket of six major currencies, was trading near an over one-week low that it hit in the previous session. The currency came under pressure as U.S. Federal Reserve officials cautioned on the global growth outlook and weak data at home, pointing to a potentially slower pace of rate hikes. The Fed is still expected to raise interest rates again next month and three times next year, but a strong majority of economists polled by Reuters over the past week say the risk is it will slow that pace down. Higher U.S. interest rates tend to boost the dollar and also push up bond yields, reducing the appeal of non-yielding bullion. In a veiled criticism of Washington that further sours the tone of China-U.S. ties ahead of a G20 meet, a top Chinese diplomat said on Monday that the APEC summit’s failure to agree on a communique resulted from certain countries “excusing” protectionism. Meanwhile, holdings at SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.16 percent to 760.86 tonnes on Monday.

METALS:-

London copper prices eased on Wednesday as tensions between the United States and China escalated ahead of a major meeting between the two presidents next week. The United States administration on Tuesday said China has failed to alter its "unfair" practices, adding to tensions ahead of a high-stakes meeting later this month between U.S. President Donald Trump and Chinese President Xi Jinping. Three-month copper on the London Metal Exchange was down 0.2 percent at $6,170 a tonne, at the time of writing, while base metals on the Shanghai Futures Exchange lost ground, with copper slipped 1.3 percent to 49,150 yuan ($7,077.24) a tonne. Global primary aluminium output rose to 5.414 million tonnes in October from 5.301 million tonnes in September, data from the International Aluminium Institute (IAI) showed on Tuesday. Japan's top steelmaker Nippon Steel & Sumitomo Metal Corp is bracing for a weaker steel market in Asia because the escalating Sino-U.S. trade war may crimp steel demand in top buyer China and in Southeast Asia, a senior executive said.  

ENERGY:-

Oil prices on Wednesday recovered some of the previous day’s over 6 percent plunge, lifted by a report of an unexpected decline in U.S. commercial crude inventories as well as record Indian crude imports. But investors remained on edge, with the International Energy Agency (IEA) warning of unprecedented uncertainty in oil markets due to a difficult economic environment and political risk. International Brent crude oil futures were at $63.35 per barrel at the time of writing, up 82 cents, or 1.3 percent from their last close. U.S. West Texas Intermediate (WTI) crude future, were up 78 cents, or 1.4 percent, at $54.21 a barrel. Wednesday’s rebound came after a report by the American Petroleum Institute late on Tuesday that U.S. commercial crude inventories last week fell unexpectedly by 1.5 million barrels, to 439.2 million, in the week to Nov. 16. Yet Wednesday’s bounce did little to reverse overall market weakness, which saw crude tumble by more than 6 percent the previous session amid a selloff in global stock markets. With output surging and the demand outlook deteriorating, the Organization of the Petroleum Exporting Countries (OPEC) is pushing for a supply cut of between 1 million and 1.4 million bpd to prevent a repeat of the 2014 glut. U.S. crude oil production has jumped by almost a quarter this year, to a record 11.7 million bpd largely because of a surge in shale output.



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Monday, 19 November 2018


BULLION:-

Gold prices were steady on Monday, with the dollar subdued following comments from U.S. Federal Reserve officials that were cautious on global economic growth. Spot gold was up about 0.1 percent at $1,222.14 per ounce at the time of writing, while U.S. gold futures were flat at $1,222.8 per ounce. The dollar index, which measures the greenback against a basket of six major currencies, was at 96.48. Asian shares inched cautiously higher amid conflicting signals on the chance of a truce in the Sino-U.S. trade dispute. Fed policymakers on Friday signaled further interest rate increases ahead, even as they raised relatively muted concerns over a potential global slowdown that has markets betting heavily that the rate-hike cycle will soon peter out. President Donald Trump said on Friday that he may not impose more tariffs on Chinese goods after Beijing sent the United States a list of measures it was willing to take to resolve trade tensions, although he added it was unacceptable that some major items were omitted from the list. British Prime Minister Theresa May said on Sunday that toppling her would risk delaying Brexit and she would not let talk of a leadership challenge distract her from a critical week of negotiations with Brussels.  

METALS:-

London copper prices rose on Monday, supported by tight supply and after U.S. President Donald Trump said he may not impose more tariffs on Chinese goods. Trump made the comment after Beijing sent a list of measures it was willing to take to resolve trade tensions, although he added it was unacceptable that some major items were omitted from the list. Three-month copper on the London Metal Exchange had risen 0.4 percent to $6,229 a tonne at the time of writing, while the most-traded copper contract on the Shanghai Futures Exchange was up 0.4 percent at 49,780 yuan ($7,175.91) a tonne. Headline copper inventories in LME-registered warehouses fell by 5,425 tonnes to 161,025 tonnes, nearing last month’s 10-year low of 136,675 tonnes. Trade tensions were clearly on display at an APEC meeting in Papua New Guinea over the weekend, where leaders failed to agree on a communiqué for the first time ever.

ENERGY:-

Oil prices rose around 1 percent on Monday as traders expected top exporter Saudi Arabia to push producer club OPEC to cut supply toward year-end. Despite that, market sentiment remains weak on signs of a demand slowdown amid deep trade disputes between the world’s two biggest economies, the United States and China. Front-month Brent crude oil futures were at $67.29 per barrel at the time of writing, up 53 cents, or 0.8 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures, were up 71 cents, or 1.3 percent, at $57.17 per barrel. The Organization of the Petroleum Exporting Countries (OPEC), de-facto led by Saudi Arabia, is pushing for the producer cartel and its allies to cut 1 million to 1.4 million barrels per day (bpd) of supply to adjust for a slowdown in demand growth and prevent oversupply. Despite Monday’s gains, crude prices remain almost a quarter below their recent peaks in early October, weighed down by surging supply and a slowdown in demand growth. This comes in part after Washington granted Iran’s major oil customers, mostly in Asia, unexpectedly broad exemptions to sanctions it reimposed on Tehran in November. U.S. energy firms added two oil rigs in the week to Nov.  


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Wednesday, 14 November 2018



BULLION:-

Gold prices held steady on Thursday after gaining nearly 1 percent on Wednesday, helped by a slight retreat in the dollar following a rally and as some investors covered their short positions after the metal held the key $1,200 level. Spot gold was up 1 percent at $1,210.60 per ounce. Prices had slipped to their lowest since Oct. 11 at $1,195.90 in the previous session. U.S. gold futures settled up $8.70, or 0.72 percent, at $1,210.10. An index that tracks the dollar versus a basket of six major currencies was down 0.2 percent after hitting a 16-month high on Monday. Factors including increased buying by central banks, the return of interest amongst exchange-traded fund (ETF) investors and seasonal demand for physical gold are acting as a cushion to the downside. Holdings of the world's largest gold-backed ETF, SPDR Gold Trust (GLD), remained near their highest level in more than two months. Bullion has fallen about 11 percent from a peak in April as investors instead flocked to the dollar, with U.S.- China trade friction unfolding against a background of higher U.S. interest rates.  

METALS:-

London copper and aluminium prices rose slightly along with other metals on Thursday, with investors looking to potential stimulus spending in China after weak retail and credit growth data in October. Three-month copper on the London Metal Exchange had risen 0.4 percent to $6,113 a tonne at the time of writing, while the most-traded copper contract on the Shanghai Futures Exchange gained 0.4 percent to 49,180 yuan ($7,076) a tonne. Prices of aluminium, zinc, lead and tin also increased. The outlook for copper demand in the mid to long term remains healthy despite current trade friction between China and the United States as a renewable energy revolution will require vast amounts of the metal, industry executives said. Global miner Rio Tinto is among parties making a final offer for a minority stake in Teck Resources Ltd's Quebrada Blanca copper mine expansion in northern Chile, a development worth $4.8 billion, two sources close to the matter said. China, the leading holder of international deep sea exploration licences, has increased its lead in the race for alternative sources of battery minerals by taking samples from cobalt-bearing mountains deep in the Pacific.  

ENERGY:-

Natural gas prices shot through the roof on Wednesday as weather forecasts called for an increasingly cold winter in what is looking like a tightly supplied market. Natural gas spot prices had climbed by more than 17 percent to reach $4.812-a price that traders haven't seen since Fall 2014. The natural gas futures market had an exceptionally volatile trading morning, with prices surging about 35 percent since the beginning of the month, likely stemming from traders rushing to cover short positions as panic set in. The 10- to 15-day weather forecast that has the market in a jumble calls for exceptionally cold weather over the next six to fifteen days-the trend showing ever increasing cold temperatures. The cold snap is just one factor pushing prices upward. Inventories for natural gas are also low for this time of year, data from the EIA showed last week. Total natural gas stocks as of 11/02 were 3,208 Bcf-a 15.3% decline from this week a year ago, and 16.2% below the five-year average. Updated storage data is scheduled to be released today at 09.00 PM IST.  



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Monday, 12 November 2018


BULLION:-

COMEX gold futures steadied near multi week lows on Tuesday which were made during previous session. Monday session was the third straight day of losses for the yellow metal, which has lost about $20, or 1.5% since its last positive settlement on Nov 7. In Monday's session, worries over Brexit negotiations dealt a fresh blow to the sterling, pushing up the greenback, which is a contrarian bet to the dollar. The dollar index, which measures the greenback against a basket of six currencies, rose 0.7%. Monday's bottom and settlement also left the December contract with a precariously small buffer to protect the $1,200 support, which had been the market's bedrock since September. The dollar rallied last week after strong U.S. producer price index data on Friday became an endorsement for the Federal Reserve to raise interest rates again in December. The Fed has already hiked rates three times this year and is determined to stay ahead of the inflationary curve with more increases in 2019 after the robust growth seen lately in the US economy.  
METALS:-

Nickel on Tuesday stays near its 11-month lows on worries about stainless steel. Increasing nickel pig iron production and rising Shanghai nickel inventory also pointed to further nickel weakness in the short term, said analyst Helen Lau of Argonaut Securities. The dollar climbed to a 16- month high as investors positioned for a U.S. interest rate rise next month and concern about political risks in Europe put pressure on the euro and the pound. A stronger U.S. currency makes dollar-denominated metals more expensive for buyers paying in other currencies. Shanghai rebar steel prices tumbled nearly 4 percent to the lowest since late July, pressured by worries over slowing demand in top consumer China over the seasonally weak winter period. That weighed on zinc, mainly used in galvanised steel, with the LME price down 1.9 percent at $2,474.50 a tonne. LME on warrant aluminium stocks , those not earmarked for delivery, rose 5,550 tonnes to 745,750, data showed on Monday. They have climbed 22 percent over the past month.  

ENERGY:-


WTI oil prices fell by more than 1 percent on Tuesday, with Brent crude sliding below $70 and WTI below $60 per barrel, after U.S. President Donald Trump put pressure on OPEC not to cut supply to prop up the market. Both oil price benchmarks have shed more than 20 percent in value since early October. Sky-high production in the U.S., coupled with incremental barrels coming from Saudi Arabia and Russia is starting to impact oil market balances. As such, crude oil inventories are starting to increase once again. US crude oil production , already at a record 11.6 million barrels per day (bpd), to break through 12 million bpd in 2019, making the United States "energy independent". op crude exporter Saudi Arabia has watched with alarm how supply is starting to outpace consumption, fearing a repeat of 2014's price crash. Saudi Energy Minister Khalid al-Falih said on Monday the Organization of the Petroleum Exporting Countries (OPEC) agreed there was a need to cut oil supply next year by around 1 million bpd from October levels to prevent oversupply. U.S. President Donald Trump, however, did not like the rhetoric coming from his political ally in Saudi Arabia. "Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!" Trump said in a Twitter post on Monday.  


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