Copper Ends Marginally Up On MCX
MCX Copper futures stayed broadly supported yesterday as global Copper prices held up despite a deep cut in equities in US and Europe. Copper eyed the slide in US dollar. US dollar index stayed slippery and fell to a two month low of 96.40. COMEX Copper is down in Asia, quoting lower by 0.30% at $2.56 per pound. MCX Copper rose 0.64% to close at Rs 431.30 per kg yesterday and should see a mixed opening. US dollar could see a modest recovery ahead of the nonfarm payrolls data though the overall mood in financial market appears grim on amid renewed worries about the impact of the rapidly spreading coronavirus outbreak on the global economy.
Crude Slides Near 14 Month Low
Crude oil futures have tanked near 14 month low in Asia, adding to yesterday’s losses. WTI Crude currently quotes at $45.47 per barrel, down 1% on the day amid a heavy slide in equities. MCX Crude ended down 2% at Rs 3433 pr barrel. US markets tanked on fresh worries over coronavirus. DOW gave up some of the hefty gains recorded on Wednesday and plummeted 3.6%. European markets also saw heavy losses. Meanwhile, according to the US Energy Information Administration (EIA), the US crude oil exports averaged 2.98 million barrels per day (b/d) in 2019, an increase of 930,000 b/d (45%) from 2018. The number of destinations for US crude oil exports increased from 41 to 44, and Canada continued to receive the largest share (15%, or 459,000 b/d), followed by South Korea (14%, or 426,000 b/d). Increased US crude oil production, which rose 1.24 million b/d in 2019 (11%) over the previous year, allowed for greater volumes of US crude oil exports.
Gold Gains Sharply As US Equities Plunge
COMEX Gold futures saw a massive jump as coronavirus outbreak spread further and US equities tanked. The state of California has declared a state of emergency due to the coronavirus illness and major central banks this week have eased their monetary policies to combat the negative economic consequences of the Covid-19 outbreak. COMEX Gold soared around 1.5% yesterday and currently trade at $1671 per ounce, up 0.20% on the day as the DOW tanked 3.5% last night. MCX Gold futures closed at a fresh high of Rs 44466 per 10 grams, up 2% on the day. Gold also eyed elevated food prices globally. The FAO Food Price Index (FFPI) averaged 180.5 points in February 2020, down 1.9 points (1%) from January but still 13.5 points (8.1%) higher than in February 2019.
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