The next big influence on the direction of gold prices will be the Fed’s interest rate decision on December. Gold received some support on Wednesday as stock markets plunged because the volatility also dragged down U.S. Treasury yields. There was also talk that the Fed may abandon its plan to raise rates due to the excessive stock market volatility.The next move in gold is likely to be related more to the direction of interest rates rather than the election results. Sometimes you have to take it one event at a time with some awareness of the future.
Time table, for December 2016 & January 2017:
1. OPEC production decision on November 30,
2. Fed’s interest rate decision on December 14
3. Trump’s inauguration in late January.
SMM 2016 China Metals Summit
SMM 2016 China Metals Summit (CMS), one of China’s largest annual gathering of base metals industry, is opening in Shanghai, China. The summit, to be held on Nov. 10-11, features high-profile speakers, panel discussion, supply demand information to help all attendees better understand the ever-changing market.
Why Copper Surge after Trump’s Victory?
Republican candidate Donald Trump beat Hillary Clinton to become the 45th President of the United States. Base metal market surged across the board after the election result. Copper, underperforming others for most part of the year, also outshined. Why does copper market cheer the news? The followings are views of major banks.
1. SEB Markets
Bjarne Schieldrop, chief commodity analyst, said Trump’s promise to increase infrastructure spending and to cut taxes has boosted market expectation over copper demand. The view also echoed by Tom Kendall, the analyst from ICBC Standard Bank.
The bank said that copper market response is overdue, and it is not rational, and noted that projecting of limited copper exports from China is one of copper price drivers.
3. Societe Generale
The analyst Robin Bhar said market fundamentals see no changes, lending no support to current gains, and in the long run, China-US trade may be harmed by Trump’s protectionist trade policy after taking office.
4. Goldman Sachs
The bank said Trump’s economic plan will give more favor to zinc and steel products than copper.
Our Some Best Services Read it Here…
www.capitalstars.com | T:+91-731-6790000,6669900