Gold eased as the dollar climbed further from last week’s three-year low on the back of higher Treasury yields – Gold on MCX settled down -0.21% at 30509 as the dollar climbed further from last week’s three-year low on the back of higher Treasury yields. Volatility has jumped across financial markets this month as investors worried about the pace of U.S. rates hikes in the wake of data showing a pick-up in inflation. St Louis Fed President James Bullard tried to tamp down expectations of four rate hikes in 2018. Three increases are widely anticipated. Stocks have steadied after recent sharp losses, while the dollar has found its feet after last week falling to its lowest since the end of 2014. Rising U.S. yields have put the currency on track for its second biggest weekly gain of the year. In addition to their impact on currencies, higher yields can also weigh on gold in their own right, as they increase the opportunity cost of holding non-interest bearing bullion. Meanwhile, demand for the yellow metal in other major hubs in Asia remained dull as most markets were shut for the week-long Lunar New Year holidays.
Copper prices fell as investors locked in profits and the dollar firmed amid uncertainty over demand in top metals consumer China – Copper on MCX settled down -1.07% at 459.7 as investors locked in profits and the dollar firmed amid uncertainty over demand in top metals consumer China. Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 10.5 percent from last Friday, the exchange said. Record high stocks of copper in land-locked Arizona and Utah are a reflection of soaring transport costs in the United States and weak demand for the industrial metal produced in the Americas, copper industry sources say. Sources added that stocks in these two locations are likely to keep rising until prices are high enough to offset costs of transporting the copper. U.S. premiums are up more than 10 percent since November, but they are still not high enough to cover the costs of transporting the copper to the country’s industrial heartland in the Midwest or to consumers in Asia.
Oil Prices Climb On Monday As Asia’s Oil Production Drops – Oil prices are up Monday morning in Asia, boosted by a new report from Rystad Energy forecasting oil production in East and Southeast Asia will drop by 20 percent between 2017 and 2025.Oil production in Asia is eroding sharply due to natural depletion in mature oil fields. Total oil production in East and Southeast Asia is set to decline from 13.1 million barrels of oil equivalent per day (boe/d) to 10.4 million boe/d by 2025, according to Rystad Energy. Underpinning the decline in output is the diminishing volume of new oil discoveries in East and Southeast Asia. The past decade and a half have seen fewer and fewer new sources of oil, while the limited volume of new oil discovered may not translate into production. China’s oil production will decline the least, with the giant Changqing field continuing to support stable output and likely to contribute over 1 million boe/d over the next five years.
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