Bullion counter extend last week losses as gold prices fell to a more than one-week low on Monday, as stronger-than expected data from China and a robust start to the U.S. earnings season soothed concerns about global economic slowdown, denting the appeal of bullion. The yen hovered near its lowest level this year on Monday as more signs of stabilisation in the Chinese economy and an upbeat start to the U.S. earnings season prompted investors to abandon the safe-haven currency to seek higher returns elsewhere. Gold may dip lower towards 31550 while facing resistance near 31900 Silver can test 36800 while facing resistance near 37200. Hedge funds and money managers increased their bullish wagers in COMEX gold and silver in the week to April 9, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. Physical gold demand in India was robust last week as retail buyers and jewellers took advantage of a dip in domestic prices to stock up for the wedding season, while gains in the domestic currency kept premiums elevated in China amid steady demand.
Base metals prices may trade with sideways bias. Copper may test 455 while taking support near 446 in MCX. Copper prices rose on Monday, after data from China showed higher unwrought copper imports in March, while declining inventory and concerns over supply deficit also lent support. Copper stocks in LME-approved warehouses were down 2,000 tonnes on April 11 compared with the previous day, while copper inventories in warehouses tracked by the Shanghai Futures Exchange fell 5 percent from a week ago to 245,178 tonnes on Friday. China imported 391,000 tonnes of unwrought copper last month, up 25.7 percent from the previous month and 26.5 percent higher than a year earlier, data released on Friday showed. China’s March copper ores and concentrates imports were also higher than the year-ago levels, at 1.77 million tonnes, but down from an unusually strong February. Zinc can test 226 while taking resistance near 230 Lead can move in range of 132-135. Nickel may dip towards 890 while facing resistance near 910. Aluminum prices may trade in range of 146-148.
Crude oil may trade in red as oil prices edged lower on Monday after international benchmark Brent hit a fresh five-month high in the previous session, but concerns over global supplies provided a floor to losses. Crude oil may dip towards 3360 while taking resistance near 4430 in MCX. The head of Libya’s National Oil Corp warned on Friday that renewed fighting could wipe out crude production in the country. The Organization of the Petroleum Exporting Countries (OPEC) and its allies meet in June to decide whether to continue withholding supply. OPEC, Russia and other producers, an alliance known as OPEC+, are reducing output by 1.2 million bpd from Jan. 1 for six months. OPEC’s de facto leader, Saudi Arabia, is considered keen to keep cutting, but sources within the group said it could raise output from July if disruptions continue elsewhere. Russia’s Finance Minister Anton Siluanov was quoted by the TASS news agency as saying on Saturday that Russia and OPEC may decide to boost production to fight for market share with the United States but this would push oil prices as low as $40 per barrel. Natural gas may witness selling pressure as it can test 180 in MCX.
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