Oil prices weighed down as U.S. inventory gains revive glut worries - 28 Jun 2017

Commodity Intraday Tips,

Gold struggles to add to gains despite dollar slump.  
Gold prices moved off six-week lows, after the dollar fell to a seven-month low against rivals but gains were capped as Fed chair Janet Yellen reiterated the need to raised rate “very gradually” Fed chair Janet Yellen offered relatively little on monetary policy but reiterated that it was appropriate to raise interest rates “very gradually to a level that [is] likely to remain quite low by historical standards for a long time”. Yellen noted that inflation expectations “has continued to run below our [the fed’s] objective”, asserting that the central bank wanted to avoid a scenario in which inflation expectations continued to slip. In a rising interest rate environment, investor appetite for gold weakens as the opportunity cost of holding the precious metal increases relative to other interest-bearing assets such as bonds. Elsewhere, upbeat consumer confidence data had muted effect on gold futures, despite expectations for consumer confidence to drop it rose to 118.9 in June, The Conference Board announced Tuesday.  

India Brass, Copper Scrap prices decline tracking the weakness in Futures.  
India's major brass and copper scrap prices declined on the Scrap Register Price Index as on Monday tracking the weakness in copper futures prices at India's Multi Commodity Exchange as crude oil prices fell and U.S. durable goods data missed forecasts, though expectations for upbeat Chinese demand and concern over mine supply kept the metal underpinned near Friday's 11-week high.  

Indonesia Extends Safeguard Duty on Aluminum-Zinc Coated Sheet by Additional 3 Years.  
Indonesia informed the World Trade Organization (WTO) that the country will extend safeguard tariff on aluminum-zinc coated steel sheet by additional three years, with different tax rates each year, cnmn.com reported. China Aluminum International Trading Co. (Chalco Trading) raised aluminum prices it offered in major markets significantly today after yesterday’s cut.      

Oil prices weighed down as U.S. inventory gains revive glut worries. 
Oil markets were steady to lower on Wednesday after a report of rising U.S. fuel and crude inventories underscored concerns that a three-year supply glut is far from over. The U.S. inventory gains show global supplies are still ample despite the effort by the Organization of the Petroleum Exporting Countries (OPEC) to cut output by 1.8 million barrels per day (bpd) between January 2017 and March 2018. "Everybody was positioned for a market rebalancing and a stocks draw to happen in the second quarter.  And if you look at the macro analysis, that should start happening," Taylor said in an interview with Reuters. "But so far it hasn't happened and everyone has made the same mistake. Nobody has distinguished themselves," he said. Some analysts said that crude prices had likely bottomed out and would rise. "We believe that the selloff in crude is overdone ... Brent is primed for a recovery," BMI Research said. 

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