BULLION – Bullion counter may trade on flat to negative note as gold prices eased on Thursday as the dollar remained near a two-year high hit in the previous session, while a dip in equities and weak data from Germany augmented worries about the pace of global growth and cushioned losses in the safe-haven bullion. The euro nursed losses against the dollar on Thursday after dipping to a 22-month low on a surprise drop in a leading indicator for economic activity in Germany, amplifying worries of a growth slowdown in Europe largest economy. Gold is often used as a hedge against economic and political uncertainties. U.S. Treasury yields were lower across maturities on Wednesday as investors piled into the safe-haven government bonds following a dovish report from Canada central bank, weak data from Germany and Australia, and solid demand at auction for $41 billion of new five-year notes. SPDR Gold Trust, the world largest gold-backed exchange-traded fund, said its holdings fell 0.23 percent to 747.87 tonnes on Wednesday from 749.63 tonnes on Tuesday.
ENERGY- Crude oil may witness some profit booking at higher levels as oil prices fell on Thursday as record U.S. output and rising crude stockpiles dampened the impact on markets of tighter U.S. sanctions on Iran and producer club OPEC continued curbs on supply. Crude futures rose to 2019 highs earlier in the week after the United States said on Monday it would end all exemptions for sanctions against Iran, demanding countries halt oil imports from Tehran from May or face punitive action from Washington. U.S. crude oil production EIA has risen by more than 2 million barrels per day (bpd) since early 2018 to a record of 12.2 million bpd currently, making the United States the world biggest oil producer ahead of Russia and Saudi Arabia. Alcoa, which has targeted both plants for closure for some time, finally reached agreement with unions in January and curtailed the last operating plotlines in February, removing 128,000 tonnes of annual capacity from the European market. U.S. natural gas futures settled higher on Wednesday after touching their lowest level in nearly three years in the last session, as forecasts for hotter weather were expected to boost cooling demand.
BASE METAL – Base metals prices may trade with sideways to positive bias. Global aluminium production flatlined in the first quarter of this year, according to the International Aluminium Institute (IAI). A couple of longrunning outages together with curtailments in Europe caused production outside China to dip 1.4 percent to 6.37 million tonnes in the first three months of 2019. Chinese production, a complex moving picture of price-induced curtailments, pollution controls and capacity swaps, edged 1.6 percent higher to 8.93 million tonnes. The net result was that global production rose by a marginal 0.3 percent year-on-year as China remained the world dominant player with a 57 percent share of world production.
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