Copper Gains After Testing Multi Year Low
COMEX Copper futures edged up after witnessing heavy losses on Monday. The red metal fell to its lowest level in around three years but gained a recovery emerged in global stocks after the carnage on Monday as hopes of targeted economic stimulus boosted sentiments. Global markets saw their biggest falls since the 2008 financial crisis on Monday. COMEX Copper is currently trading at $2.53 per pound, down marginally on the day. MCX Copper futures ended down marginally at Rs 427.50 per kg. The inventories of copper in Shanghai Futures Exchange rose sharply by 11.1% from the previous week to 345,126 tonnes as on March 5th 2020, soaring to highest since April 2016.
Crude Oil Speculative Long Positions Drop
Large energy speculators trimmed their bullish net positions in the WTI Crude Oil futures markets last week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday. The non-commercial futures contracts of WTI Crude Oil futures, traded by large speculators and hedge funds, totaled a net position of 388369 contracts in the data reported through March 2nd. This was a weekly tumble of 43097 net contracts. The long positions are at the lowest level in last four months. Meanwhile, the commercial trader’s position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -390170 contracts on the week. This was a weekly change of +49633 net contracts.
Gold Set For Volatile Moves
COMEX Gold futures backed off sharply yesterday amid an excellent rebound in US equities. Gold jumped to eight year highs above $1700 per ounce on Monday amid panic selling in world equities. The coronavirus fear hurt sentiments for risky assets, boosting Gold. The coronavirus outbreak could cost the global economy up to $2 trillion this year, the UN’s trade and development agency said. A preliminary downside scenario sees a $2 trillion shortfall in global income with a $220 billion hit to developing countries (excluding China), it noted. However, Gold fell yesterday as the US President Donald Trump noted that he will provide very substantial relief to the economy to cushion the economic fallout from the coronavirus outbreak. DOW jumped nearly 5% on these comments and COMEX Gold tumbled around 1%. MCX Gold futures also fell by 1.25% to Rs 43800 per 10 grams and could see a volatile movement today.
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