Gold prices dropped as the U.S. dollar rose and risk appetite revived in global financial markets - 28 Mar 2018

Commodity Intraday Tips
Gold prices dropped as the U.S. dollar rose and risk appetite revived in global financial markets -Gold on MCX settled down -0.66% at 30699 as strength in the U.S. dollar, as well as overall gains in global stock markets, dulled investment prospects for the precious metal. Gold failed to breach 1357 level as the fears of an all-out trade war between the US and China are easing and risk appetite is back with all the three major indices in Wall Street posting a sharp rebound since Monday. Gold bulls took profits amid risk-on sentiment as Trump discussed, on a call, trade practices with China with German Chancellor Merkel and French President Macron. Trump and Merkel talked “joining forces to counter” China’s economic practices and intellectual property theft.        

Zinc price awaits demand uptick - Zinc prices are likely to stay rangebound with pressure as downstream consumption recovers slower given adequate supplies of ore, SMM believes. China’s domestic consumption is affected as another round of cutback has been imposed on galvanising plants in north China earlier this week. The restriction was estimated to be removed no earlier than Wednesday March 28. Though short, the cutback affected demand as such restrictions have been enforced several times in north China this month. Once the restriction is lifted, downstream demand is likely to pick up from April. However, it remains unclear if zinc smelters will cut production ito hold up offers.

Copper prices climbed lifted by a rebound in equities on hopes that a trade war between top metals consumer China and the United States may be avoided - Copper on MCX settled up 0.48% at 430.75 gained on short covering, yesterday prices opened with gap as prices climbed across the board lifted by a rebound in equities on hopes that a trade war between top metals consumer China and the United States may be avoided. But upside will be capped with inventories on the rise, the market lukewarm about the near-term prospects for Chinese demand and the speculative community having sliced their longs to the lowest in a couple of years, there’s not much of an appetite (for copper) right now. 

Oil prices fall on surprise U.S. inventory rise; China crude volatile - Oil prices fell on Wednesday, with Brent dropping back below $70 per barrel and U.S. West Texas Intermediate crudes dipping below $65, pulled down by a report of increasing U.S. crude inventories that surprised many traders.Traders said the dips came after the American Petroleum Institute (API) late on Tuesday reported a surprise 5.3 million barrels rise in crude sticks in the week to March 23, to 430.6 million barrels. Official U.S. inventory data will be published by the Energy Information Administration (EIA) late on Wednesday. "We'll see how the inventory data looks and whether these recent highs can be challenged again. For the moment it is looking like both WTI and Brent are stalling," said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

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