MCX Gold Trades Flat As INR Firms Up
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. 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. However, the metal gained today on good buying and currently quotes at $1667 per ounce, up 0.40% on the day. MCX Gold futures fell more than 1% in last session and currently trade flat at Rs 43750 per 10 grams. Local Gold stayed in check as the Indian Rupee jumped on bargain buying after falling near 14 month low earlier this week. INR closed at 73.62 per dollar mark, adding 55 paise on the day.
US Crude Inventories Surge 7.7 Million Barrels
The US commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 7.7 million barrels from the previous week, according to Energy Information Administration (EIA) data. At 451.8 million barrels, US crude oil inventories are about 2% below the five year average for this time of year, according to the EIA crude oil and petroleum weekly storage data, reporting inventories as of March 6, 2020. The US crude oil refinery inputs averaged 15.7 million barrels per day during the week ending March 6, 2020, which was 5,000 barrels per day less than the previous week’s average. Refineries operated at 86.4% of their operable capacity last week. US crude oil imports averaged 6.4 million barrels per day last week up by 174,000 barrels per day from the previous week. Over the past four weeks, crude oil imports averaged about 6.4 million barrels per day, 6.5% less than the same four-week period last year. Total motor gasoline inventories decreased by 5.0 million barrels last week and are about 1% above the five year average for this time of year. Distillate fuel inventories fell by 6.4 million barrels last week and are about 10% below the five year average for this time of year.
Copper Still Nervous, China Import Data Tepid
COMEX Copper futures eased as European markets came off their highs and US stock futures fell sharply. Traders also eyed tepid Chinese Copper imports data. China imported 3.77 million mt of copper ore and concentrate in the first two months of 2020, down 1.2% from the same period last year, according to data from China Customs. COMEX Copper futures have bounced back from multi year lows amid bargain buying amid economic stimulus hopes but today’s price action shows a lot of nervousness is still lingering around in the market. COMEX Copper is currently quoting at $2.51 per pound, down 0.20% on the day. MCX Copper futures are also in red, down 0.34% to trade at Rs 426.35 per kg right now.
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