Precious Metals Preview:
Gold slipped today, testing near two week low. The US stocks saw choppy moves as traders eyed earnings. Upbeat economic cues kept sentiments mostly supported. Gold eyed firm moves in commodities complex as Crude oil and Copper added impressive gains. However, the recent import duty cut in India capped upside in the metal. US dollar index also consolidated above 91 mark, keeping overall mood under check for the commodity. COMEX Gold futures are currently trading at $1822 per ounce, down 0.67% on the day. MCX Gold futures closed at Rs 47826 per 10 grams, almost unchanged on the day after hitting a high of Rs 48079 per 10 grams.
The US Energy Information Administration (EIA) reported a crude oil inventory draw of 1 million barrels for the last week of January. The EIA estimate compared with a build of 4.4 million barrels reported for the third week of January. In gasoline, the EIA reported a rise of 4.5 million barrels with production averaging 8.4 million bpd. This compared with a decline of 300,000 bpd a week earlier and production averaging 8.9 million bpd. EIA also reported that Distillate inventories are about 8% above the five-year average. This compared with an inventory build of half a million barrels for the previous week and production averaging 4.5 million bpd.
Base Metals Preview:
COMEX Copper saw good gains in the last session as bargain buying supported the commodity amid upbeat US economic cues. A report released by the Institute for Supply Management on Wednesday showed US service sector activity grew at an accelerated rate in the month of January. The ISM said its services PMI inched up to 58.7 in January from a revised 57.7 in December, with a reading above 50 indicating growth in the service sector. ADP said private sector employment jumped by 174,000 jobs in January after decreasing by a revised 78,000 jobs in December. This set up the metal nicely even as the US equities saw choppy moves and COMEX Copper added more than 1%. MCX Copper futures also ended up 1% at Rs 597 per kg.
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