Precious Metals Preview:
COMEX Gold rose steadily from a near three week low but gains were capped as the US dollar index stayed firm above 90 mark. COMEX Gold also eyed outlook on US interest rates. The US interest rates could rise sooner than forecast as the economy recovers more quickly than expected from the throes of the Covid-19 damage, Atlanta Federal Reserve President Raphael Bostic said Monday. Bostic said that he thinks the emergency measures the Fed has taken to combat the pandemic can start to be rolled back within the next two years if not sooner. Rising rates could keep Gold under check over coming quarters. The yellow metal currently trades flat at $1948 per ounce. MCX Gold futures ended at Rs 49300 per kg, up 0.68% on the day after testing a low near Rs 48600 mark.
Large energy speculators added to their net long positions in the WTI Crude Oil futures market 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 518649 contracts in the data reported through January 4th 2021. This was a weekly surge of 6918 net contracts and pulled the net longs to around six week high. The commercial trader’s position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -561851 contracts on the week. This was a weekly change of -9901 net contracts.
Base Metals Preview:
Large base metals speculators cut their net long positions in the Copper futures markets further last week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC). The non-commercial futures contracts of Copper futures, traded by large speculators and hedge funds, totaled a net position of 69238 net contracts in the data reported through January 4th 2021. This was a weekly drop of 2043 net contracts.
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