Gold Prices Edge Up as Dollar Heads Lower Despite
Bullish GDP Data -
Gold
prices inched up on Thursday as the dollar headed lower despite a
better-than-expected GDP data. The yellow metal still hovers near a one-week
low as a rebound in the dollar earlier this week sent the bullion to its
biggest one-day fall in nearly nine months. Meanwhile, the dollar headed lower
in Asia on Thursday morning despite bullish GDP data as the anti-risk yen was
sent higher by the rising geopolitical tensions. Dollar-denominated assets such
as gold are sensitive to moves in the dollar – a fall in the dollar makes gold
cheaper for holders of foreign currency and thus increases demand for the
precious metal.
Jiangxi Copper sees high copper
prices in 2018 - Copper prices are likely to be rangebound at a relatively high level in
2018 as supplies of copper concentrate tighten, Jiangxi Copper said in its
earnings report on Thursday March 28. The growth in global copper concentrate
output is set to slow down in the next two to three years as the last round of
copper mine investment comes to an end. Consumption, meanwhile, will be buoyed
by the stable growth in China’s power grid, home appliances and auto
industries. A limited supply of imported copper scrap would also give support
to demand. However, copper prices also face pressure from high inventories and
tighter monetary policies. Slower investment growth in China’s property and
infrastructure sectors will also limit the economic development and suppress
copper prices, the report noted.
Snapshot:
Nickel spot market in Shanghai - Norilsk
nickel in the Shanghai market traded at a discount of 100-200 yuan/mt against
the Wuxi Stainless Steel Exchange 1804 contract on Thursday March 29, while
Jinchuan traded at a premium at 400 yuan/mt, SMM learned. Jinchuan offered
nickel plate at 96,900 yuan/mt. Prices of nickel futures traded rangebound in
the morning and traders made offers actively due to ample supply, while
downstream consumers bought as needed. Trading was relatively thin, with most
transactions seen at 96,200-96,900 yuan/mt.
Oil
prices rise as OPEC seen continuing supply cuts through 2018 - Oil prices rose on Thursday as the producer
cartel OPEC and other suppliers look set to continue withholding output for the
rest of the year and potentially into 2019.The Middle East-dominated
Organization of the Petroleum Exporting Countries (OPEC) together with a group
of non-OPEC producers led by Russia started cutting output in 2017 to rein in
oversupply and prop up the market. Brent, off which OPEC prices most its crude
exports, has risen by around a quarter since then, which has lead to
speculation that the restraints on production may be lifted. But sources at
OPEC told Reuters this week that the group and its allies were set to keep
their deal on cutting production for the rest of 2018. Despite this, Brent
remained below $70 and WTI under $65 per barrel, weighed by rising crude
inventories and production in the United
States.
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