Precious Metals are struggling to rally further as the market awaits the minutes of the December FED meeting. Gold futures are trading at 29230, up 68 points and Silver is at 39210, up 30 points currently.
The 10-day rally in precious metals which saw both Gold and Silver gain by over 4 percent seems to be faltering as the market awaits the minutes from the December meeting to dissect the central bank’s plan on rate hikes in 2018. The US economy has strengthened significantly despite the stubbornly low inflation and struggling labour market but the FED members maintain their view that the economy warrants three rates hikes in the current year to keep the economy chugging at its current pace.
The close above resistance at $1300 bodes well for prices and the short-term outlook is now positive but we expect prices to make another dip to $1300 before the second leg of the upside rally begins. On the lower side, a daily close below $1300 could see Gold come under pressure and call for an extended downside in prices.
Base Metals consolidate further as profit booking pushes prices lower
Base Metals are consolidating near its yearly highs after the sharp gains seen in the previous week. With the exception of Lead, the rest of the metals are trading with a negative bias. Copper is down 2.20 or 0.48% to 458.10 whereas Nickel is down nearly two percent to trade at 790.30 currently.
The rally in base metals comes as the market anticipates a larger deficit for key metals in 2018 along with forecasts of a stronger Chinese and global demand as the economy picks up. The markets are most likely to extend gains ahead of the Chinese New year which begins in February. The demand for electric vehicles has also been a major boost to raw demand for metals in the coming months.
We maintain a very bullish outlook on base metals for 2018 and expect further upside in the next two quarters. The short-term trend remains a concern as prices are under the risk of another correction after the strong gains in the past two weeks. Copper may fall back to 450-445 levels this week along with Nickel which could also fall to 775-760 levels in the short term. The intraday is negative.
Crude Oil breaks above resistance; further upside expected
Crude Oil is trading just a shade below its strongest resistance level in the last few years. Crude Oil for near-month delivery is trading at 3869, up 45 points or 1.15% whereas Natural Gas is down 1.34% to trade at 191.80 currently.
The upside is oil prices is being driven by the falling global inventories led by efforts from OPEC and Russia who have reduced output collectively since 2016 in a bid to prop up prices in the short term. The upside has also been supported by declining inventories for both Crude Oil and Gasoline in the US. The supply disruption in the Middle East and Iran has also propped up sentiment this week providing a further impetus for prices to gain higher.
We maintain a very bullish outlook on oil prices in the current year. The intraday bias remains largely neutral and we expect prices to decline further if it is unable to break above resistance at 3875 with supports coming into play at 3850-3810 in the short term whereas, on the upside, a break above the res
The 10-day rally in precious metals which saw both Gold and Silver gain by over 4 percent seems to be faltering as the market awaits the minutes from the December meeting to dissect the central bank’s plan on rate hikes in 2018. The US economy has strengthened significantly despite the stubbornly low inflation and struggling labour market but the FED members maintain their view that the economy warrants three rates hikes in the current year to keep the economy chugging at its current pace.
The close above resistance at $1300 bodes well for prices and the short-term outlook is now positive but we expect prices to make another dip to $1300 before the second leg of the upside rally begins. On the lower side, a daily close below $1300 could see Gold come under pressure and call for an extended downside in prices.
Base Metals consolidate further as profit booking pushes prices lower
Base Metals are consolidating near its yearly highs after the sharp gains seen in the previous week. With the exception of Lead, the rest of the metals are trading with a negative bias. Copper is down 2.20 or 0.48% to 458.10 whereas Nickel is down nearly two percent to trade at 790.30 currently.
The rally in base metals comes as the market anticipates a larger deficit for key metals in 2018 along with forecasts of a stronger Chinese and global demand as the economy picks up. The markets are most likely to extend gains ahead of the Chinese New year which begins in February. The demand for electric vehicles has also been a major boost to raw demand for metals in the coming months.
We maintain a very bullish outlook on base metals for 2018 and expect further upside in the next two quarters. The short-term trend remains a concern as prices are under the risk of another correction after the strong gains in the past two weeks. Copper may fall back to 450-445 levels this week along with Nickel which could also fall to 775-760 levels in the short term. The intraday is negative.
Crude Oil breaks above resistance; further upside expected
Crude Oil is trading just a shade below its strongest resistance level in the last few years. Crude Oil for near-month delivery is trading at 3869, up 45 points or 1.15% whereas Natural Gas is down 1.34% to trade at 191.80 currently.
The upside is oil prices is being driven by the falling global inventories led by efforts from OPEC and Russia who have reduced output collectively since 2016 in a bid to prop up prices in the short term. The upside has also been supported by declining inventories for both Crude Oil and Gasoline in the US. The supply disruption in the Middle East and Iran has also propped up sentiment this week providing a further impetus for prices to gain higher.
We maintain a very bullish outlook on oil prices in the current year. The intraday bias remains largely neutral and we expect prices to decline further if it is unable to break above resistance at 3875 with supports coming into play at 3850-3810 in the short term whereas, on the upside, a break above the res
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