Bullion – Gold
Last week, spot gold prices decreased by 0.2 percent to trade at $1224. However, gold prices touched a high of $1229 as dollar slipped on account of possible slowdown in the pace of rate hikes by US FED.
US FED Chairman quoted that the interest rates are just below “neutral” rates. However, the FOMC meeting minutes which was announced a day after this press release came as expected with market pricing in a rate hike for Dec’18 meeting.
On 30th Nov and 1st Dec, U.S. President Donald Trump is likely to meet his Chinese counterpart on the side-lines of the G20 meeting to discuss trade.
On MCX, gold prices decreased by 1.41 percent to close at Rs. 30176.
Bullion – Silver
Spot silver prices rose marginally by 0.15 percent in last week to close at $14.2 per ounce.
On the MCX, silver prices declined by 0.1 percent to close at Rs.36025.0 per kg.
Gold Silver Outlook :
China and the U.S. agreed to halt additional tariffs in the meeting at G20 summit last week. The two biggest economies will try to bridge their differences with fresh talks within 90 days.
ON the MCX, gold prices are expected to trade sideways today; international markets are trading higher by 0.31 percent at $1229.80 perc ounce.
Energy – Crude Oil
WTI oil increased by 2.04 percent during the week to $51.05 and gained for the first time after a month of continuous fall in oil prices
Despite this week’s rise, oil prices have still lost almost a third of their value since early October, weighed down by an emerging supply overhang and by widespread weakness in financial markets.
Meanwhile, crude oil inventories came in at 3.6 million barrels per day against market expectations of 0.6 million barrels per day for the previous week.
OPEC and its allies are going to meet in the first week of December to discuss over supply cuts.
On MCX, crude oil prices declined by 0.55 percent to close at Rs. 3633.
We expect oil prices to trade higher today, international markets are trading higher by 5.50 percent at $53.73 per barrel. OPEC meeting this week will be keenly watched by investors across the globe.
On the MCX, oil prices are expected to trade higher today.
Last Week on the LME, base metals prices were mixed. Nickel gained the most amongst the peer group i.e. around 1.2 percent. Zinc inventories in LME verified warehouse hit a fresh low since February 2008 levels. A dovish stance by FED provided some support but concerns over trade tensions continued to hamper the metals.
Last week Trump signalled that U.S. might raise tariffs to 25 percent from the current 10 percent on the $200 billion Chinese imports effective from Jan 2019 which pushed the metal prices lower. Trump is also prepared to impose tariffs on all the remaining Chinese imports which are worth $267 billion if he won’t be able to strike a deal with China’s president Xi Jin Ping when they meet G20 held in Argentina which commenced last week on Friday, Nov. 30.
China’s steel sector slid down more than 20 percent from this year’s peak and the downtrend continues amid abundant supply and lean demand.
LME copper prices rose marginally by 0.1 percent last week. FED’s Chairman Jerome Powell stated in his speech that the central bank’s policy rate is now just below estimated level which won’t affect the healthy U.S. economy. Investors considered it as a dovish stance which led to easing of Dollar and an uptrend in the metal prices. The gains in metal were restricted on concerns over weaker Chinese economic data and the bitter trade dispute.
LME Copper price is currently trading higher by 2.05 percent at $6323.5 per tonne. U.S. decided that it won’t hike tariff rates on the Chinese imports to 25 percent effective from Jan 2019 which might provide some support to the metal prices.
On the MCX, copper prices are expected to trade higher today.