Gold Up Slightly In Asia As Tax Cuts In The US Get Close To Passage - 18 Dec 2017

Commodity Intraday Tips
Gold Up Slightly In Asia As Tax Cuts In The US Get Close To Passage.
Gold edged up in Asia on Monday as US tax cuts look set for passage this week and likely affecting rate hike views by the market and the Fed going forward. This week, the final reading of third-quarter U.S. growth will be the main focus for global financial markets, as investors begin to wind down trading activity before the Christmas and New Year holidays. In the U.K., market players will be looking ahead to a final reading on British growth data for further indications on the continued effect that the Brexit decision is having on the economy. Elsewhere, traders will pay close attention to a monetary policy decision due in Japan amid speculation the Bank of Japan will lag well behind major global central banks in dialing back its massive stimulus program. 

Copper prices rose amid expectations of strong demand in top consumer China after data showed firm industrial activity. 
Copper on MCX settled up 1.47% at 445.8 amid expectations of strong demand in top consumer China after data showed firm industrial activity. Prices also seen supported amid rising stock market indices on Wall Street had boosted sentiment and sparked a wave of buying on industrial metals markets. China’s industrial output, highly correlated with copper prices. China's central bank unexpectedly lifted its rates on open market operation after the Federal Reserve tightened its policy rates. 

Zinc prices gained on concern the tightness seen this year would also be a feature of the market next year.. 
Zinc on MCX settled up 0.22% at 205.35 on concern the tightness seen this year would also be a feature of the market next year. Glencore, the world’s top zinc miner, plans to increase production to take advantage of prices near a decade high. Overall production will drop slightly in 2018 and gradually increase through 2020, the presentation showed. Glencore will raise production by 195,000 metric tons through the end of 2020 as it resumes operations at the Lady Loretta mine in Australia. The metal is up almost 90 percent since Glencore unveiled production cuts in October 2015. 

Oil markets little changed on lack of price drivers.
Oil markets were stable on Monday, hovering around Friday's levels as a lack of conclusive market indicators prevented prices from swinging either way.Despite this dip in drilling, activity is still well above this time last year, when the rig count was below 500, and actual U.S. production has soared by 16 percent since mid-2016 to 9.8 million barrels per day (bpd). This means U.S. output is fast approaching that of top producers Russia and Saudi Arabia, which are currently pumping around 11 and 10 million bpd respectively. The rising U.S. output also undermines efforts by the Organization of the Petroleum Exporting Countries (OPEC), which is de-fecto led by Saudi Arabia, and a group of non-OPEC producers including Russia to withhold production to tighten the market and prop up prices.

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