Market Update (Bullions)
Bullion counter may trade with sideways to weak bias. Gold prices fell nearly 1% in the previous session, on expectations of monetary policy easing by the world’s major economies amid soft economic data, although an uptick in equities limited gains. Prime Minister Boris Johnson is sticking to his Brexit plan and will not seek a delay to Britain’s departure from the European Union at a summit next month, two ministers said on Sunday despite the latest resignation from his government. Gold (Oct) can dip lower towards 38400 while taking resistance near 38800 while silver (Dec) can dip towards 47200 while taking resistance near 48000. The U.S. Federal Reserve will continue to act “as appropriate” to sustain the economic expansion in the world’s biggest
economy, Fed Chair Jerome Powell said Friday in Zurich, sticking to a phrase that financial markets have read as signalling further interest-rate reductions ahead. Hedge funds and money managers upped their bullish positions in COMEX gold and silver contracts in the week to Sept. 3, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Market Update (Base Metals)
Base metals may trade with dip lower on profit booking. Prices for industrial metals declined on Monday as data from China showed exports unexpectedly fell in August, pointing to further weakness in the world’s second-biggest economy. China’s August exports fell 1% from a year earlier as shipments to the United States slowed sharply amid an ongoing trade war between the world’s two largest economies. Copper may test 448 while taking resistance near 456. China’s unwrought copper imports fell in August after a bounce in the previous month, customs data showed on Sunday, as a slowdown in the world’s top copper consumer raises concerns over demand for the metal. Arrivals of unwrought copper, including anode, refined and semi-finished copper products into China stood at 404,000 tonnes last month, the General Administration of Customs said. While zinc can increase towards 189 while taking support near 185. Lead may trade sideways as it can test near 157 while taking support near 152. The premium of LME cash lead over the three-month contract rose to near a four-week high of $7.5 a tonne, indicating tight nearby supplies. Nickel may dip lower towards 1220 while taking resistance near 1260. Aluminum may test 138 while taking resistance near 142. China’s unwrought aluminium exports in August fell 9.9% from the same month a year earlier to 466,000
tonnes due to unexpected production outages at two key smelters.
Market Update (Energy)
Crude oil may trade with sideways bias. Oil rose on Monday after a Saudi official said there would be no change in Saudi Arabia’s OPEC policy as Prince Abdulaziz bin Salman was made the new energy minister for the world’s biggest crude exporter over the weekend. Prices were heading for a fourth day of gains and were also supported by comments from United Arab Emirates energy minister saying OPEC and its allies are committed to balancing the crude market. UAE’s Minister of Energy and Industry Suhail al-Mazrouei said on Sunday that members of OPEC and non-OPEC producers are “committed” to achieving oil market balance. Crude oil may take support near 4080 while taking resistance near 4150. Natural gas can move higher as it can test 183 while taking support near 177. U.S. natural gas futures rose to a 14-week high on Friday on forecasts for temperatures to remain warmer than normal over the next two weeks and projected higher flows to liquefied natural gas (LNG) export plants in mid September.
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