Precious Metals Preview:
Gold tumbled in last session, falling to a two month low as a drop under $1800 per ounce triggered plenty of panic selling in the yellow metal. Strong US economic cues hurt the mood and the commodity lost more than 2% as equities remained firm in US. Not much of buying is emerging in the commodity as the recent import duty cut in India has capped upside in the metal. Global equities are witnessing mixed movement and there is a sense that the Covid-19 infections in the US have peaked out. Vaccination drives also continue to be rolled out swiftly. The US dollar index also consolidated above 91 mark, keeping overall mood under check for the commodity. COMEX Gold futures are currently trading at $1795 per ounce, up marginally on the day after losing around 2% in last session. MCX Gold futures also closed down 2.23% at Rs 46749 per 10 grams.
WTI Crude futures remained steady around one year high. The US stocks continued to soar on firm economic cues with major indices rallying around 1%. Some resistance is emerging in oil now after recent spurt. WTI Crude is currently up 0.70% at $56.60 per barrel. MCX Crude ended up 1.13% at Rs 4116 per barrel. The US Energy Information Administration’s (EIA) Annual Energy Outlook 2021 Reference case, which assumes current laws and regulations through 2050, projects domestic crude oil production to return to 2019 levels by 2023 and then remain near 13 million to 14 million barrels per day (b/d) through 2050. The United States continues to be an integral part of global oil markets and a significant source of supply, despite uncertainty surrounding post-pandemic expectations for oil and natural gas demand. Oil prices are a key driver of projected drilling activity and accompanying US. crude oil production rates. In the Reference case, EIA projects that the Brent crude oil price increases (in real dollar terms) from its 2020 average of $42/barrel (b) to $73/b by 2030 and to $95/b by 2050.
Base Metals Preview:
Copper saw a sideways movement though firm US economic cues offered good buying support. The new orders for US manufactured goods showed another significant increase in the month of December, according to a report released by the Commerce Department on Thursday. The report said factory orders jumped by 1.1% in December after surging up by 1.3% for three consecutive months. The US initial jobless claims fell to 779,000, a decrease of 33,000 from the previous week’s revised level of 812,000. Meanwhile, as vaccination under the Joe Biden administration in the US gathers pace, Covid-19 deaths have begun to decline in every section of the country. COMEX Copper trades up 0.56% at $3.54 per ounce right now. MCX Copper futures closed at Rs 596.55 per kg, down 0.14% on the day.
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