COMEX gold futures steadied near multi week lows on Tuesday which were made during previous session. Monday session was the third straight day of losses for the yellow metal, which has lost about $20, or 1.5% since its last positive settlement on Nov 7. In Monday’s session, worries over Brexit negotiations dealt a fresh blow to the sterling, pushing up the greenback, which is a contrarian bet to the dollar. The dollar index, which measures the greenback against a basket of six currencies, rose 0.7%. Monday’s bottom and settlement also left the December contract with a precariously small buffer to protect the $1,200 support, which had been the market’s bedrock since September.
Nickel on Tuesday stays near its 11-month lows on worries about stainless steel. Increasing nickel pig iron production and rising Shanghai nickel inventory also pointed to further nickel weakness in the short term, said analyst Helen Lau of Argonaut Securities. The dollar climbed to a 16- month high as investors positioned for a U.S. interest rate rise next month and concern about political risks in Europe put pressure on the euro and the pound. A stronger U.S. currency makes dollar-denominated metals more expensive for buyers paying in other currencies
WTI oil prices fell by more than 1 percent on Tuesday, with Brent crude sliding below $70 and WTI below $60 per barrel, after U.S. President Donald Trump put pressure on OPEC not to cut supply to prop up the market. Both oil price benchmarks have shed more than 20 percent in value since early October. Sky-high production in the U.S., coupled with incremental barrels coming from Saudi Arabia and Russia is starting to impact oil market balances. As such, crude oil inventories are starting to increase once again. US crude oil production , already at a record 11.6 million barrels per day (bpd), to break through 12 million bpd in 2019, making the United States “energy independent”.
Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647