Daily Metal and Energy Outlook 22 April 2019
Market Update (Bullions)
Bullion counter may open on positive note as gold prices steadied on Monday after falling to a near four-month low in the previous session, with the dollar gaining in the wake of indications that U.S. economic growth picked up in the first quarter. The dollar drifted higher against the euro and British pound on Monday, supported by the relative strength of the U.S. economy, though moves remained small as many investors were still away for the long Easter weekend. U.S. retail sales increased by the most in 1- 1/2 years in March as households boosted purchases of motor vehicles and a range of other goods, the latest indication that economic growth picked up in the first quarter after a false start, data showed on Thursday. Gold may test 31850 while taking support near 31580 Silver can test 37800 while taking support near 37400. Hedge funds and money managers switched to a net short position in COMEX gold in the week to April 16, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. Gold premiums in top consumer China jumped to their highest in more than two years, as a drop in global prices and strengthening yuan encouraged purchases amid optimism about the state of the economy.
Market Update (Base Metals)
Base metals prices may trade with firm bias. Copper may test 455 while taking support near 445 in MCX. China’s refined copper output came in at 705,000 tonnes in March, according to data published by the National Bureau of Statistics on Friday. The bureau said the number was up 10.2 percent year-on-year but it is the lowest monthly total in records on the bureau’s website since June 2016. Zinc can test 229 while taking support near 225 Lead can move in range of 133-136. Nickel may recover towards 895 while taking support near 870. Aluminum prices may trade in range of 148-151. The most active aluminium contract on the Shanghai Futures Exchange (ShFE) hit its highest since November 2018 on Monday, following a drop in inventories last week. Shanghai aluminium jumped to as high as 14,175 yuan ($2,114.44) a tonne, after data on Friday showed that aluminium stocks in warehouses tracked by ShFE dropped to 665,067 tonnes, their lowest weekly level since November 2017.
Market Update (Energy)
Crude oil may trade in green as oil prices oil prices rallied by more than 2 percent on Monday to levels not seen since November 2018 as Washington is set to announce all imports of Iranian oil must end or be subject to sanctions. News that the United States is preparing to announce on Monday that all buyers of Iranian oil will have to end their imports shortly, or be subject to U.S. sanctions, was first reported on Sunday by Washington Post foreign policy and national security columnist Josh Rogin. The U.S. reimposed sanctions in November on exports of Iranian oil after President Donald Trump unilaterally pulled out of a 2015 nuclear accord between Iran and six world powers. Washington, however, granted Iran’s eight main buyers of oil, mostly in Asia, waivers to the sanctions which allowed them limited purchases for half-a-year. Iran’s biggest oil customers are China and India, who have both been lobbying for extensions to sanction waivers. Crude oil may move higher towards 4670 while taking support near 4530 in MCX. Natural gas may trade in range of 173- 1178 in MCX.
Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647