U.S. oil remained at an eight-week high on Friday, as a continued decline in U.S. crude inventories added to optimism over a potential rebalancing of the market
GOLD – U.S. oil remained at an eight-week high on Friday, as a continued decline in U.S. crude inventories added to optimism over a potential rebalancing of the market. Oil prices strengthened after data on Wednesday showing a fourth consecutive week of declines in U.S. crude inventories. Oil is on track to score a weekly gain of more than 6% as fresh pledges from Saudi Arabia and Nigeria to respectively pull back on exports and output boosted sentiment. Signs of a possible slowdown in U.S. shale production in the wake of reduced spending plans for some oilfield services companies also added to the bullish momentum.
CRUDE OIL – Gold prices held steady on Friday, as investors locked in profits from the precious metal’s rally to six-week highs on Thursday and as markets awaited the release of U.S. second-growth data due later in the day. The dollar remained under pressure after the Fed said on Wednesday that inflation remains below its 2% target even as near-term risks to the economic outlook appear “roughly balanced.” In the past, the Fed judged that weakness in inflation was transitory. The central bank’s cautious tone on inflation sparked fresh uncertainty over the possibility of a third rate hike this year. The Fed also said it expected to start shrinking its balance sheet “relatively soon”, prompting expectations for an announcement in September. The greenback was also weakened by data on Thursday showing that initial jobless claims rose by 10,000 to 244,000 last week. Analysts expected jobless claims to rise by 7,000 to 241,000 last week. Gold is sensitive to moves higher in both U.S. rates and the dollar. A weaker dollar makes gold less expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
COPPER – Copper concentrate output at 4 of the 10 domestic copper mines which have released its financial report grew during the first half of 2017 on a yearly basis, and fell at the rest of 6 mines, according to SMM compiled data. Many Scrap Copper Rod Plants Close in Jiangxi and Anhui for Fake Invoice, SMM Reports . Global copper mine production is estimated to have declined by around 3.5% in the first four months of 2017, with copper concentrate production declining by around 3% and solvent extraction-electrowinning (SX-EW) declining by around 5%. The decline in global copper mine production was mainly due to a 12% decline in production in Chile, the world’s biggest copper mine producing country, negatively affected by the strike at Escondida mine and lower output from Codelco mines.
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
Our Some Best Services Read it Here…