Capitalstars Market Update
Daily Metal and Energy Outlook 02st April
BULLION – Bullion counter may trade sideways to negative path. Gold prices inched down on Monday as Gold inched up on Tuesday, but was trading near a more than three-week low touched in the previous session as the U.S. dollar strengthened and equities rose. The dollar was up 0.1 percent against key rivals, trading close to a three-week high posted in the previous session as ebbing concerns about the global economy pushed U.S. bond yields up from 15-month lows. U.S. manufacturing activity rebounded a bit more than expected in March, according to an industry report released on Monday, as production, new orders and hiring all picked up. U.S. retail sales unexpectedly fell in February, but a rebound in factory activity in March and strong increase in construction spending offered hope the economy was not slowing as sharply as previously feared. China raised its gold holdings by 9.95 tonnes in February, according to data from the International Monetary Fund. The Perth Mint said on Monday its gold products sales in March surged about 68 percent from the previous month, touching the highest level since November last year.
ENERGY- Crude oil may trade on positive note as oil prices rose to fresh highs for the year on Tuesday, after a U.S. official said Washington is considering more sanctions on Iran and key Venezuelan export terminal halted operations. OPEC oil supply sank to a four-year low in March and positive data from the world biggest economies, the United States and China. The U.S. government is considering additional sanctions against Iran that would target areas of its economy that have not been hit before, a senior Trump administration official told reporters on Monday. The official also suggested that the U.S. may not extend waivers from sanctions on Iranian oil exports to a group of eight importers that expire next month. Venezuela Jose crude export terminal has halted operations due to a lack of electricity supply, two sources with knowledge of the situation said, after restarting on Friday following a prolonged blackout. Production cuts from the Organization of the Petroleum Exporting Countries (OPEC) helped push the group supply to a four-year low in March.
BASE METAL – Base metals prices may trade sideways path. Copper and most other base metals fell on Tuesday as the U.S. dollar edged higher and as supply concerns from a copper mine in Peru eased slightly. The Peruvian government offered a deal to indigenous protesters to lift their blockade at the Las Bambas copper mine owned by China MMG Ltd, but a decision is pending agreement among the indigenous community. Indigenous protesters have blocked roads to the mine since early February, demanding compensation from MMG for using a stretch of road on their farmland. Las Bambas produces about 2 percent of global copper output. Russian aluminium giant Rusal has resumed supplies to the U.S. market and aims to win back customers it lost due to sanctions by about September when the industry seals supply contracts for 2020.
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