Daily Metal and Energy Outlook 08th April
BULLION – Bullion counter may witness some lower level buying. Gold was little changed on Monday as strong U.S. jobs data boosted investors appetite for riskier assets, with markets awaiting minutes of the Federal Reserve March meeting later this week. U.S. employment growth accelerated from a 17-month low in March, assuaging fears of an abrupt slowdown in economic activity, but a moderation in wage gains supported the Federal Reserve decision to suspend further interest rate increases this year. Minutes of the Federal Reserve last policy meeting are due on Wednesday. U.S. and Chinese negotiators wrapped up their latest round of trade talks on Friday and are scheduled to resume discussions this week to try to secure a pact that would end the tariff battle that has roiled global markets. The value of China gold reserves fell slightly to $78.525 billion from $79.498 billion at the end of February. Physical gold demand perked up in top bullion consumer China on a dip in prices and optimism surrounding a U.S.-China trade deal, while buying picked up pace in the Indian market as domestic rates fell ahead of a key festival.
ENERGY- Crude oil may extend last week gains as oil prices rose to their highest level since Nov. 2018 on Monday, driven up by OPEC ongoing supply cuts, U.S. sanctions against Iran and Venezuela and strong U.S. jobs data. Brent prices increased more than 30 percent year-to-date as OPEC+ continued to cut supply for 4 months in a row and optimism over U.S.-China trade talks helped to buoy the demand outlook. The Organization of the Petroleum Exporting Countries (OPEC) and non-affiliated allies like Russia, known as OPEC+, have pledged to withhold around 1.2 million barrels per day (bpd) of supply this year to prop up prices. Russian oil output reached a record high of 556 million tonnes, or 11.16 million barrels per day (bpd), last year. In the United States, crude oil production EIA reached a record 12.2 million bpd in late March.
BASE METAL – Base metals prices may trade with positive bias. London copper prices rose as much as 1 percent in early Asian trade on Monday, snapping two days of declines as investors hoped for more stimulus measures in top metals consumer China and a key copper conference was set to begin in Chile. China said on Sunday it would step up its policy of targeted cuts to banks’ required reserve ratios to encourage financing for small and medium-sized businesses that play a key role in economic growth. Ltd . Nickel used to make stainless steel, was the top performer in London, rising 1.2 percent to $13,230 a tonne, while tin was the laggard, slipping 0.3 percent to $20,945 a tonne.
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