Posted by pranjali upadhyay Posted on 02:00 with 2 comments
My assessment is that if it weren’t for the Fed, gold futures would have breached the psychological $1300.00 level and ended up about $30.00 lower. Instead, bullish gold investors have the central bank to thank for last week’s solid gains.
The market posted its biggest weekly advance since July after the Fed opted to leave interest rates unchanged while cutting its economic forecast and reducing the number of expected rate hikes in the future.
Although the daily chart pattern appears to show a massive short-covering rally took place, data from Bloomberg showed that investors added at least 6.3 metric tons to exchange-traded funds backed by gold last week.
The price action suggests that the aggressive buyers from earlier in the year may be gone, but there are new buyers coming back in who are willing to defend the market on corrections into value zones. One may even argue that the rally earlier in the year was overdone since it came on the heels of the last Fed rate hike. So we’ll be watching this week to see if gold can follow-through to the upside after last week’s gains.
The gold market could prove to be interesting this week. On one hand, we have the technical analysts who cite the series of descending tops and bottoms as two reasons why we can expect to see lower prices.
We also have those who believe that since it is a competing asset for investment capital with stocks, that its upside will be limited as long as the equity indices remain at or near all-time highs.
Then we have the bulls who are saying that as long as the Fed is being cautious about raising rates, and while it is cutting its economic forecasts and reducing the number of rate hikes in the future, the gold market has strong upside potential because after all, these legitimate concerns are enough to raise uncertainty levels which makes gold a good investment.
I tend to look at gold this way. It’s range bound. I think that as long as there is demand for higher yielding assets like stocks or the Australian Dollar, gold’s upside will be limited. However, gold prices will continue to be supported if the U.S. Dollar remains under pressure because of a steady flow of foreign demand.
At one point on Friday, crude oil futures were down over 4 percent, cutting into most of its weekly gains, as traders reacted viciously to a report that Saudi Arabia did not expect an agreement at talks next week among major crude exporters aimed at freezing production.
The selling was triggered after Bloomberg reported that the Saudi’s did not expect a “decision” at the informal meeting set for Algiers on September 26 to September 28.
Because of the volatility created by Friday’s price action, I believe investors are going to play the market tight on Monday, setting up the possibility of an inside range. Of course, there are going to be stories coming out of the informal meeting so we could see some volatility due to headline reactions.
The headline the bullish traders would like to see is one that says Saudi Arabia and Iran are discussing a production freeze. Then I’d like to see a headline that says Russia is brokering a deal between Saudi Arabia and Iran.
Because just like the discussions in Doha in April, I don’t think a deal will get done unless Saudi Arabia and Iran are on the same page.
LME Copper rose last Friday with positions opening by longs but then met resistance because there was no more positive news. LME copper will fluctuate at USD 4,840-4,875/mt on Monday and SHFE 1611 copper will range between RMB 37,650-37,950/mt. In China’s domestic market, spot copper should be traded at premiums of RMB 100-120/mt on Monday.
China Aluminum International Trading Co. (Chalco Trading) announced big hike in aluminum prices it offered in major markets today, it said on its WeChat.
After 6 years of exploration, Xinjiang announced it found a world-class ultra-large lead-zinc mine September 25.
In China’s domestic market, demand at downstream battery producers may increase with the upcoming China’s National Day Holidayduring October 1-7 while supply of spot lead remains tight, helping lead price up. But with expected declines in SHFE lead, spot lead may drop by RMB 25/mt to RMB 14,400-14,550/mt today.
Nickel prices are expected to get a boost as Philippine’s major ore producing region will enter the monsoon season soon.
What months are the rainy season in the Philippines?
A lot of rain (rainy season) falls in the months: May, June, July, August, September, October and November. Manila has dry periods in January, February, March and April. On average, the warmest month is May. On average, the coolest month is December.
Posted by pranjali upadhyay Posted on 23:23 with No comments
शुक्रवार के कारोबार में डाओ जोंस 0.7 फीसदी, एसएंडपी 0.6 फीसदी और नैस्डेक 0.6 फीसदी गिरावट के साथ बंद हुआ है।.शुक्रवार को क्रूड कीमतों में 4 फीसदी की गिरावट देखने को मिली है। जिसके बाद एनर्जी सेक्टर के स्टॉक्स में बिकवाली हावी हो गई। एनर्जी सेक्टर के स्टॉक्स में 5 फीसदी की गिरावट देखने को मिली है।शुक्रवार के कारोबार में एनर्जी सेक्टर इंडेक्स 1.18 फीसदी की गिरावट रही है।.शुक्रवार को फेसबुक में 1.64 फीसदी, एपल में 1.68 फीसदी और याहू में 3.26 फीसदी की गिरावट देखने को मिली है। वहीं ट्विटर के स्टॉक में शुक्रवार को 21 फीसदी.की बढ़त देखने को मिली है। स्टॉक में बढ़त उन खबरों के बाद दर्ज हुई जिसके मुताबिक कंपनी बिक्री से जुड़े विकल्पों पर विचार कर रही है।
शुक्रवार की गिरावट के बावजूद हफ्ते के दौरान डाओ जोंस में 0.8 फीसदी, एसएंडपी 500 और नैस्डेक में 1.2 फीसदी की बढ़त देखने को मिली है। हफ्ते की बढ़त फेडरल रिजर्व द्वारा दरों में कोई बढ़त न करने की वजह से दर्ज हुई है।
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