Gold prices dropped as the U.S. dollar rose and risk
appetite revived in global financial markets - Gold on MCX settled down -0.66% at 30699 as strength in the U.S.
dollar, as well as overall gains in global stock markets, dulled investment
prospects for the precious metal. Gold failed to breach 1357 level as the fears
of an all-out trade war between the US and China are easing and risk appetite
is back with all the three major indices in Wall Street posting a sharp rebound
since Monday. Gold bulls took profits amid risk-on sentiment as Trump
discussed, on a call, trade practices with China with German Chancellor Merkel
and French President Macron. Trump and Merkel talked “joining forces to
counter” China’s economic practices and intellectual property
theft.
Zinc price awaits demand uptick
- Zinc prices are
likely to stay rangebound with pressure as downstream consumption recovers slower
given adequate supplies of ore, SMM believes. China’s domestic consumption is
affected as another round of cutback has been imposed on galvanising plants in
north China earlier this week. The restriction was estimated to be removed no
earlier than Wednesday March 28. Though short, the cutback affected demand as
such restrictions have been enforced several times in north China this month.
Once the restriction is lifted, downstream demand is likely to pick up from
April. However, it remains unclear if zinc smelters will cut production ito
hold up offers.
Copper
prices climbed lifted by a rebound in equities on hopes that a trade war
between top metals consumer China and the United States may be avoided - Copper on MCX settled up 0.48% at 430.75 gained
on short covering, yesterday prices opened with gap as prices climbed across
the board lifted by a rebound in equities on hopes that a trade war between top
metals consumer China and the United States may be avoided. But upside will be
capped with inventories on the rise, the market lukewarm about the near-term
prospects for Chinese demand and the speculative community having sliced their
longs to the lowest in a couple of years, there’s not much of an appetite (for
copper) right now.
Oil
prices fall on surprise U.S. inventory rise; China crude volatile - Oil prices fell on Wednesday, with Brent
dropping back below $70 per barrel and U.S. West Texas Intermediate crudes
dipping below $65, pulled down by a report of increasing U.S. crude inventories
that surprised many traders.Traders said the dips came after the American
Petroleum Institute (API) late on Tuesday reported a surprise 5.3 million
barrels rise in crude sticks in the week to March 23, to 430.6 million barrels.
Official U.S. inventory data will be published by the Energy Information
Administration (EIA) late on Wednesday. "We'll see how the inventory data
looks and whether these recent highs can be challenged again. For the moment it
is looking like both WTI and Brent are stalling," said Greg McKenna, chief
market strategist at futures brokerage AxiTrader.
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