There were a recent combination short covering and a flight to safety that lead to gold’s rapid increase in price with the precious metal climbing through the descending channel’s resistance to set a fresh high of $1,226/oz up from $1,180 recent double bottom lows. However, US equity markets set a firmer tone on Friday with respect to investor risk appetite which leaves gold bulls exposed to the risk of a deeper correction should market’s continue to recover – Gold had already retreated back to $1,216 which has been marked out by the bears in the last two full day’s of trade since its advance.
London copper reversed some early gains on Friday as the dollar climbed. The SHFE 1812 contract on Friday night fell below the daily moving average and ended at 50,720 yuan/mt after it rose to a high of 51,090 yuan/mt. Copper prices recovered as the markets settled from the US equity rout.
Crude oil futures rose on Monday as geopolitical tensions over the disappearance of a prominent Saudi journalist stoked worries about supply, although concerns about the long-term outlook for demand dragged on prices. “The market has again expressed concerns over geopolitical tensions in the Middle East after U.S. and Saudi traded comments over the disappearance of the Saudi journalist, leading to a jump in prices,” Wang Xiao, head of crude research with Guotai Junan Futures, wrote in a research note.
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