Gold prices were largely steady on Tuesday ahead of a U.S. Federal Reserve meeting that starts later in the day, with investors looking for clues on the central bank’s outlook for next year. Asian share markets stumbled on Tuesday as heightened concerns about a slowing global economy sent Wall Street stocks skidding to their lowest levels in more than a year. The Federal Open Market Committee (FOMC) is widely expected to raise interest rates at its two-day meeting starting later in the day. However, the focus will be on the outlook for 2019, with many investors expecting signs of economic turbulence to prompt the Fed to signal a slowdown in the pace of tightening next year.
London copper fell to the day’s lows of $6,079/mt on Monday before it recovered from those losses and closed at $6,133.5/mt. The SHFE 1902 contract rebounded from a low of 48,860 yuan/mt and ended at 49,130 yuan/mt overnight. With pressure at moving averages, both LME and SHFE copper are expected to remain rangebound at lows today. LME copper is likely to trade at $6,100-6,150/mt with the SHFE 1902 contract at 48,700-49,200 yuan/mt. Spot prices are seen at discounts of 60 yuan/mt to premiums of 20 yuan/mt. London nickel fell to close at $10,995/mt on Monday after it climbed past the $11,100/mt level.
Oil prices dropped over 1 percent on Tuesday, falling for a third straight session, as reports of inventory builds and forecasts of record shale output in the United States, currently the world’s biggest producer, stoked worries about oversupply. Concerns around future oil demand amid weakening global economic growth and doubts over the impact of planned production cuts led by the Organization of the Petroleum Exporting Countries (OPEC) were also pressuring prices, traders said. Both U.S. crude and Brent have shed more than 30 percent from early October amid swelling global inventories, with WTI currently trading at levels not seen since October 2017.
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