Daily Metal and Energy Outlook 05th April
BULLION – Bullion counter may trade with sideways path as investors will eye the outcome of nonfarm payroll data due later today. Gold was little changed on Friday, having slid to its lowest level in 10-weeks in the previous session as the dollar strengthened ahead of the U.S. nonfarm payrolls data due later in the day. The dollar rose to a three-week high versus the yen on Friday, lifted by expectations that a protracted trade dispute between the United States and China would be resolved soon. The number of Americans filing applications for unemployment benefits fell to a nearly half-century low last week, pointing to sustained labor market strength despite slowing economic growth. Pro-Brexit lawmakers in Britain upper house of parliament tried on Thursday to thwart the approval of a new law that would force Prime Minister Theresa May to seek a delay to prevent a disorderly EU exit on April 12 without a deal.
ENERGY- Crude oil may trade on negative note as oil prices fell on Friday, with Brent slipping away from the $70 mark after briefly rising above that level in the previous session, as traders fretted about progress in U.S.-China talks to end a trade war. U.S. President Donald Trump said on Thursday a trade deal with China was getting very close and could be reached in about four weeks, but he said sticking points included tariffs and intellectual property theft. Brent has gained nearly 30 percent this year, while WTI has risen nearly 40 percent, underpinned by U.S. sanctions on Iranian and Venezuelan crude, OPEC production cuts and rising global demand. U.S. natural gas futures fell to a six-week low on Thursday on a bigger-than-expected storage build and forecasts that warmer-than-usual weather over the next two weeks will keep heating demand low.
BASE METAL – Base metals prices may trade in green as London industrial metals rose on Friday, supported by news that the United States and China are edging closer to a trade deal after months of dispute. U.S. President Donald Trump said on Thursday a trade deal with China could be reached in about four weeks, but he issued a warning to Beijing that, absent a pact, it would be difficult to allow trade to continue. The Shanghai Futures Exchange is closed on Friday for the Tomb Sweeping Day holiday and will reopen on Monday. In Indonesia, a mudslide at Freeport-McMoran Grasberg mine, the world second-largest copper mine, injured two workers while two others were missing on Wednesday. Concerns over copper supply disruption increased as a Peruvian judge on Wednesday ordered jail time for lawyers representing indigenous villagers who have blockaded shipments from Las Bambas copper mine operated by Chinese miner MMG Ltd .
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