* China CPI steady at 2.1%; PPI jumps 5.5%in Dec’16.
* French Industrial Production jumped by 2.2% in Nov’16.
* LME Copper stocks down by 0.5 percent on Monday.
European stocks are trading higher as French industrial production data added to signs of EU economic recovery. Asian markets are trading on a mixed note and the US stock futures are trading in the red.
Spot gold prices are trading higher by 0.3 percent at $1184.6/oz while MCX gold prices are trading flat at Rs.28051 per 10 gms. Gold rose to its highest in over one a month on Tuesday, buoyed by a weaker U.S. dollar and as fears that Britain will not have a clean break with the European Union stoked safe-haven buying.
LME Copper prices are trading higher by 1.1 percent at $5654/t as Chinese factory prices gained the most in more than five years in Dec’16, propped by gains in raw material prices whereas CPI was steady at 2.2 percent. Also, decline in LME stocks by 0.5 percent along with weakness in the DX is acting as a positive factor. MCX copper prices are trading higher by 1.2 percent at Rs.387.6 per kg.
NYMEX oil prices are trading higher by 0.6 percent at $52.28/bbl while MCX oil prices are trading lower by 0.14 percent at Rs.3569/bbl respectively. Oil prices stabilised on Tuesday after a sharp sell-off as a fall in the dollar triggered a bout of short-covering, but market remained vulnerable to further falls.
Iraq says December oil exports from Basra at record 3.51 mln bpdOil exports from Iraqs southern Basra ports reached a record high of 3.51 million barrels per day (bpd) in December, the oil ministry said on Monday. However, Iraqs Oil Minister Jabar Ali al-Luaibi said the unprecedentedly high exports from the south would not affect Iraqs decision to lower production in January in line with an OPEC agreement, according to a ministry statement.
OUTLOOK REPORT :
Gold prices are a function of how the rate hike process happens in the US depending on the economic data sets in 2017. We expect gold prices to trade sideways today. New president takes office on January 20th, volatility continues.
We expect oil prices to trade sideways today given the anticipated output cuts by the OPEC nations will be a booster for oil markets.
LME Copper prices will likely trade higher today owing to favorable Chinese inflation number and weaker DX.