Gold prices rose to their highest level in around a month in European trade on Monday, as market players looked ahead to a busy week of economic events
GOLD – Gold prices rose to their highest level in around a month in European trade on Monday, as market players looked ahead to a busy week of economic events, including a Federal Reserve policy decision and U.S. second quarter growth data. Prices logged a gain of more than 2% last week, as ongoing political turmoil in the White House and weakness in the U.S. dollar spurred haven demand for the precious metal. In the coming week, global financial markets will focus on the outcome of Wednesday’s Federal Reserve policy meeting for any new insight on the timing of the next U.S. rate hike and clues on how the central bank plans to pare back its massive balance sheet. There are also several key U.S. economic reports, with the biggest being second quarter GDP due on Friday. Besides the GDP report, this week’s calendar also features U.S. data on both existing and new home sales, as well as consumer confidence, durable goods orders and weekly jobless claims. According to Investing.com’s Fed Rate Monitor Tool, conviction for another rate hike before the end of the year has faded, with just 35% of market players expecting another move by December, as the subdued inflation outlook raised doubts over whether policymakers will be able to stick to their planned tightening path.
CRUDE OIL – OPEC leader Saudi Arabia said on Monday the group would quickly address weak compliance with output cuts by some OPEC states and would monitor rising production from Nigeria and Libya, which have been exempted from the curbs. Rising output from U.S. shale producers has offset the impact of the output curbs, as has climbing production from Libya and Nigeria. “We must acknowledge that the market has turned bearish with several key factors driving these sentiments,” Saudi Energy Minister Khalid al-Falih told a meeting of a committee that monitors the deal between OPEC and non-OPEC states. Alongside Saudi Arabia, the committee known as the JMMC includes Russia, Kuwait, Venezuela, Algeria and Oman. It has the power to recommend measures to other producers involved in the pact, depending on market conditions. JMMC is due to announce its position later on Monday. Falih said that weaker compliance with cuts by some OPEC members and a rise in OPEC exports were helping soften prices.
ALUMINIUM – Aluminum ingot stocks in China’s five major markets rose at a slower pace after reaching their highest level in almost five years, SMM statistics showed. Shandong to Lose Crown as China’s Only Bauxite Importing Province After 2017, SMM Predicts. As of July 21, aluminum ingot stocks in Shanghai, Wuxi, Nanhai, Hangzhou and Gongyi, rose 9,000 tonnes week-on-week to 1.26 million tonnes. IAI: Primary Aluminum Output Grows in China in June, But Falls Outside China. Production cuts in northwest China affected aluminum ingot shipments. A bigger share of aluminum liquid was used locally in Xinjiang to make billet, reducing ingot production. These contributed to inventory slowdown in consumption hubs, SMM explained.
Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
Our Some Best Services Read it Here…