MCX GOLD :
Gold prices are expected to trade on a cautions note, as market participants look forward to US FOMC meeting. However, we sense that July meeting will be a non-event given the low prospects of any change in language and low probability of a rate move unity December this year.
MCX COPPER :
Copper prices skyrocketed about a five month high, helped by erratic lab our strikes at mines in Indonesia and Latin America. Nevertheless, Antofagasta has averted a strike at Zalvidar mine in Chile by increasing speculative interest. In this regard, hedge funds and money managers hiked their long positions on LME Copper by almost 10% in the latest week to 74,233 lots, the highest since February. Meanwhile, other metals like zinc and nickel also surged by ridding on Copper’s coattails.
MCX CRUDE OIL :
Oil futures extended the recovery, with Brent values above the psychological mark of US$50/bbl. Energy markets are deriving cues from OPEC’s pledge that the cartel can extend the production cuts, if needed.Also, Nigeria’s agreement to cap production at 1.8mbpd is also helping the sentiment. However, global inventories still remain high (even after falling 90mn barrels during the first half of this year), with current levels reported at 250mn barrels above the five year average.