Daily Metal and Energy Outlook 30th April
Bullions: Bullion counter may trade on positive bias as gold edged up on Tuesday as Asian shares fell ahead of the release of a raft of economic data and the U.S. Federal Reserve’s two-day meeting which will decide the trajectory of interest rates. Growth in China’s factory activity unexpectedly slowed in April, an official survey showed on Tuesday, suggesting the economy is still struggling to regain traction despite a flurry of support measures. The market is now eyeing a bevy of economic data from the euro zone and the Fed’s statement on Wednesday. Gold may test 32150 while taking support near 31700 while Silver can test 38300 while taking support near 37800. The Federal Reserve is expected to hold interest rates steady as policymakers balance recent stronger-than-expected U.S. economic growth against sluggish inflation. China’s net gold imports via main conduit Hong Kong in March rose 9.8 percent from the previous month, Hong Kong government data showed on Monday.
Base metals: Base metals prices may trade with sideways to positive bias. Copper may test 455 while taking support near 445 in MCX. Jiangxi Copper Co one of China’s biggest copper producers, plans to build a plant to produce refined copper in Malaysia’s eastern state of Sabah as the country emerges as a dismantling centre for non-ferrous scrap, its chairman said. Global crude steel production rose 4.9 percent to 155 million tonnes in March from the same month a year ago, figures from the World Steel Association showed on Monday. Zinc can test 228 while taking support near 222. Global crude steel production rose 4.9 percent to 155 million tonnes in March from the same month a year ago, figures from the World Steel Association showed on Monday. China’s iron ore futures rose on Tuesday and were on track to post their fifth straight monthly gain, while construction steel headed for its best month since July 2018. Lead can move in range of 135-138. Nickel may test it can test 885 while taking support near 855. Aluminum prices may recover towards 152 while taking support near 148. Russian aluminium giant Rusal has appointed Charles Brian Hesse the head of its office in the United States at a time when it is trying to strengthen its presence in North America, the firm said in a statement on Tuesday.
Energy: Crude oil may witness some profit booking as oil prices dipped on Tuesday on expectations rising output from the United States and producer club OPEC would offset most of the shortfall expected from U.S. sanctions on Iran, but analysts said markets remained tight. Crude oil may dip towards 4320 while facing resistance near 4500 in MCX. Oil prices surged by around 40 percent between January and April, lifted by supply cuts led by the Middle East-dominated producer club of the Organization of the Petroleum Exporting Countries (OPEC) as well as by U.S. sanctions on producers Iran and Venezuela. But prices came under downward pressure late last week after U.S. President Donald Trump openly pressured OPEC and its de-facto leader Saudi Arabia to raise output to meet the supply shortfall caused by the tightening Iran sanctions. U.S. exports exceeded 3 million barrels per day (bpd) for the first time in early 2019 amid a more than 2 million bpd production surge over the past year, to a record of more than 12 million bpd. Natural gas may trade in range of 179- 184 in MCX.
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