Gold briefly dipped below $1,200 an ounce Friday after a strong U.S. employment report. The 10-year U.S.
COPPER: Chile-based Antofagasta said Tuesday copper prices will continue rising this year after an increase of 17% in 2016, according to wenhua.com.Antofagasta expects deficit in copper supply in 2017, so copper prices will not drop to a low seen in 2016.
India’s major brass and copper scrap prices climbed on Monday, while copper futures prices at India’s Multi Commodity Exchange settled up boosted by ongoing supply disruptions at two massive mines in Chile and Indonesia, intensified by an indefinite strike that broke Friday at Freeport-McMoRan’s Cerro Verde mine in Peru the country’s largest.
ALUMINIUM: Shorts in Upper Hand in Aluminum Market (2017-3-15)In China’s domestic market, downstream demand is improving, so shorts mainly take short-term operational plan. But, high inventories and falling short of policy expectations also restrict bullish sentiment, with shorts in the upper hand, undermining its support at the 60-day moving average.
GOLD: European election risks could limit Gold’s downside.
Gold futures have been pressured lately by expectations for higher U.S. interest rates, but the downside may be limited by uncertainty about approaching European elections, said Citi analysts.
Gold briefly dipped below $1,200 an ounce Friday after a strong U.S. employment report. The 10-year U.S. Treasury yield got as high as 2.615%, its loftiest level since early December.
The 18-20bps (basis points) back-up in 10Y TIP yields is a headwind for the yellow metal given the negative beta between gold prices and real medium-term U.S. rates albeit EU election risks could keep levels supported above $1,175 an ounce until later in 2Q, allowing gold trading to dislocate a bit from bearish rates/strong USD trends, Citi added.
“Friday’s strong NFP number should allow the FOMC to hike rates on Wednesday by 25bp (basis points), although markets are more likely to focus on signals from the committee on future hikes and balance sheet developments,” said BNP Paribas.
In an effort to dispel market concerns, the Saudi energy ministry said the “difference between what the market observes as production, and the actual supply levels in any given month, is due to operational factors that are influenced by storage adjustments and other month to month variables.”
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