Published on 17/07/2017 11:09:22 AM | Source: Angel Commodities Pvt Ltd
Crude oil outshines the commodities space gains solid 5 percent this week - Angel Commodities
Below is the view On Crude oil outshines the commodities space by Mr. Prathamesh Mallya (Chief Analyst- Non-Agri Commodities & Currencies, Angel Commodities Broking):
“Precious metals traded lack lustre this week as factors revolving the US economy are healthy enough for the FED to raise interest rates, stronger global equities and upbeat economic data has capped any sharp rally in the counter. Besides, The MSCI world index hit a record high for the fourth time in less than a month as investors took Yellen's remarks as a green light for risk-taking and dumping the precious metals pack.
Oil gains by around 5 percent this week, boosted by positive demand numbers from China and decline in the US inventories while comments from the International Energy Agency about accelerating momentum in the economy and stock drawdown further pushes oil prices higher.
Base metal has its own set of factors with Aluminum supported by potential supply curbs as China cracks down on illegal expansion of production capacity, Aluminium stocks in LME warehouses fell another 6,525 tonnes, data on Thursday, taking them back towards this week's near nine-year low, Zinc stocks down more than 35 percent since the start of the year are push factors for prices to rise in the near term.
Overall, Precious metals will trade lower in the week ahead and any rally in gold should be used as selling opportunity for target lower towards Rs.27000, Crude oil rally will fade sooner or later: prices can move lower down towards Rs.2900/bbl; Aluminum prospects seem bright with rally higher towards Rs.126.5/kg.”
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