MENU

Published on 20/08/2019 11:37:58 AM | Source: Angel Broking Pvt Ltd

We expect oil prices to trade higher today - Angel Commodities

Posted in Commodities Reports| #Commodity Tips #Angel Broking Pvt Ltd

Now Get InvestmentGuruIndia.com news on WhatsApp. Click Here To Know More

Bullion

Gold

On Monday, spot gold prices dipped by 1.24 percent to close at $1495.0 per ounce. Spot gold prices declined below the $1500 mark recording its biggest daily fall in almost a month.

Markets seem to move towards riskier assets as the U.S. Treasury yield curve is no longer pointing towards an evident recession. Correction in the treasury yield supported the U.S. Dollar and weighed on the yellow metal prices.

Moreover, the dispute between U.S. & China showed some signs of easing the intense trade war which further boosted the risk appetite amongst investors. Rising bond yields globally amid easing of tension between the biggest economies in the world dented the appeal for the bullion metal.

 

Silver

On Monday, Spot silver prices dipped over 1.2 percent to close at $16.9 per ounce while MCX silver prices rose by 0.9 percent to close at Rs.43430 per kg.

Outlook

We expect gold and silver prices to trade lower as appreciation in the U.S. Dollar and fading concerns over a possible recession dented the appeal for the safe haven asset, Gold.

ON the MCX, gold prices are expected to trade lower today; international markets are trading lower by 0.39 percent to close at 1505.55 per ounce.

 

Energy

Crude Oil

On Monday, WTI Crude prices rose over 2 percent to close at $56.2 per barrel. Prices were pushed higher after the weekend attack on the Saudi’s Oil facility by the Yemen’s Houthi force.

A drone was attacked by the Yemen’s Houthi group further escalating the tension from the Middle East, but the officials of the state said that the oil production was not affected.

Prices were further supported after the intense trade war between U.S. & China showed signs of easing of tension as the U.S. stated that it would extend a reprieve that would permits China's Huawei Technologies to continue buying components from U.S. companies.

The gains for Crude were capped after the Organization of the Petroleum Exporting Countries (OPEC) trimmed down its forecast its forecast for global oil demand growth in 2019 by 40,000 barrels per day (bpd) to 1.10 million bpd. Bearish approach by the OPEC weighed on the prices.

Outlook

Crude prices might trade higher following an attack on Saudi's Oil facilities during the weekend amid easing of tension between U.S. & China. However, the gains were capped after OPEC trimmed down its demand growth forecast for this year.

We expect oil prices to trade higher today, international markets are trading lower by 0.05 percent at $56.11 per barrel.

 

Base Metals

On Monday, base metals on the LME traded positive except for Nickel which dipped by 1.73 percent. Industrial metal prices traded higher as China announced new measures to support its

Prices also found some support after the trade tension between U.S. & China showed signs of easing as the U.S. stated that it would extend a reprieve that would permits China's Huawei Technologies to continue buying components from U.S. companies.

Aluminium prices might find some support as supply disruptions arising from China after a typhoon affected the facilities belonging to China Hongqiao Group, world's top Aluminium producer.

 

Copper

On Monday, LME Copper prices ended marginally higher by 0.1 percent. Stimulus measures by China, the world’s biggest metal consumer supported the red metal prices.

Outlook

Expectation of stimulus measures by major metal consumer China might support the industrial metal prices.

On the MCX, Copper prices are expected to trade higher today; international markets trading lower by 0.02 percent at $5768.5 per tonne.

 

To Read Complete Report & Disclaimer Click Here

 

Views express by all participants are for information & acadamic purpose only. Kindly read disclaimer before refering below views. Click Here For Disclaimer