BULLION :- Gold remained under pressure for fourth consecutive session following strength in the dollar against its major crosses. Last week, the yellow metal was weighed down after Senate Republicans approved a rewrite of the U.S. tax code, stoking optimism over President Donald Trump’s stimulus plans. Economic numbers released from the US also came in better than-expected that supported the dollar on lower levels. Non-farm payrolls number, released on Friday, showed the economy added 228,000 jobs in November compared to expectation of 198,000 jobs. But in the week, focus will be on FOMC policy statement; expectation is that the Federal Reserve could consider raising rates but outlook for the coming year will be keenly watched.
ENERGY :- Crude oil prices were pulled down as the
latest rise in the U.S. rig count pointed to a further increase in American production, potentially undermining efforts led by
OPEC to tighten markets. The amount of rigs drilling for new oil production in the U.S. rose by two in
the week to Dec.8, to 751, the highest level since September and close to levels from top producers Russia and
Saudi Arabia. Crude futures were buoyed by data showing China’s oil imports rose to 9.01 million bpd
last month, the second highest on record, data from the General Administration of Customs. We believe
underlying trend for oil prices is likely to remain positive but some liquidation is likely given the
record amount of long positions in the futures market. Natural gas slumped as inventory data showed a surprise
buildup in stocks last week and is likely to remain under pressure today.
BASEMETAL : - Base Metals traded marginally higher
but downside threat still continues to prevail in the market. Weaker imports for base metals for second month could imply a
stubbornly weak economy and bring renewed short selling interest in base metals complex. Zinc rallied on data that
China's zinc production fell by 1.1% YoY in Nov to 423,000 tonnes. China's exports and imports
unexpectedly accelerated last month is encouraging sign for world's second-biggest economy, though it is
estimated that growth will continue to cool amid government crackdown on financial risks and polluting
factories. Exports in November rose 12.3% YoY, the fastest pace in eight months, led by strong sales of
electronics and high-tech goods, while commodity purchases helped lift imports. Imports grew 17.7% YoY in
November, also well above expectations of 11.3% growth and rising at the fastest pace since September.
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
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
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