On Tuesday, Spot gold prices declined 0.29 percent to trade at $1284.9 per tonne as investors ship into riskier assets post optimism over US-China trade spat.
Global stock rally as the markets anticipates that US-China may head towards a trade deal pointing towards increasing risk appetite amongst investors. However, Increasing ETF demand restricts the downtrend in the precious metal.
On the MCX Gold prices traded higher by 0.29 percent to close at Rs.31741.0 per 10gms.
On Tuesday, Spot silver prices rose marginally by 0.1 percent to close at $15.7 per ounce.
On the MCX, silver prices rose 0.23 percent to close at Rs.39862.0 per kg.
International markets trading lower by 0.1 percent at $1284.65 per ounce. We expect markets to trade lower as Optimism over trade talks between US and China led to a rally in the world stocks which over powered the rate hike pause by FED which was supporting the yellow metal prices.
On the MCX, gold prices are expected to trade sideways.
On Tuesday, WTI crude rose significantly by 2.6 percent to trade at $49.8 per barrel as markets expect that the meeting between US and China held in Beijing which commenced on 7th January might end the trade dispute.
Prices further appreciated as chances of extension of supply cuts by OPEC tighten the markets amid rally in the global equity markets.
We expect oil prices to trade higher today as major oil producers reduce their output coupled strong anticipating of a trade deal between US and China which had raised global growth concerns.
On the MCX, oil prices are expected to trade higher today; international markets are trading marginally higher by 1.39 percent at $50.47 per barrel.
On Tuesday, base metal prices on the LME were mixed. Optimism over a possible trade deal between US and China might support the prices however strengthening in the Dollar Index Coupled with weak economic numbers from China restricted the gains.
China’s steel rebar prices rally after Beijing vows to boost domestic spending Coupled with the inter-city railway projects in China with an investment value of $33.7 billion which might boost the demand.
On Monday, LME Copper prices declined by 0.3 percent to close at $5906.0 per tonne as Dollar strengthens. Possible trade deal between US and China might lead to an uptrend in the prices.
Vedanta’s south Indian copper smelter which was ordered to shut permanently in May got approval from India’s Supreme Court to resume production by refusing to stay an order from the country’s environmental court.
LME Copper price is currently trading higher by 0.47 percent to trade at $5967 per tonne. Investors focus on the outcome of the Trade talks between US and China’s officials as they continue for an unscheduled third day. We expect copper prices to trade higher as optimism over a trade deal between US and China might push the red metal prices higher.
On the MCX, copper prices are expected to trade sideways today