CAPITALSTARS - MCX COMMODITY MORNING MARKET NEWS & UPDATES - 15 DEC 2017

Gold prices eased off highs as the dollar rebounded following strong U.S. retail sales data - Gold on MCX settled up 0.43% at 28317 but prices eased off highs as the dollar rebounded following strong U.S. retail sales data. U.S. retail sales increased more than expected in November as the holiday shopping season got off to a brisk start, pointing to sustained strength in the economy that could pave the way for further Federal Reserve interest rate hikes next year. Gold prices reversed a two-day slide on Wednesday against the backdrop of a widely expected Federal Reserve rate hike, and an unchanged outlook on the path of monetary policy tightening with three rate hikes expected in 2018. The Fed raised benchmark rates for the third time this year as widely expected, but maintained its outlook of three rate increases in 2018 on low inflation concerns.

Copper prices gained on global growth hopes after upbeat manufacturing data from China - Copper on MCX settled up 0.48% at 439.35 on global growth hopes after upbeat manufacturing data from China, overlooking a stronger dollar and Beijing’s surprise interest rates hike China’s industrial output expanded at a faster than expected pace in November as growth in the world’s top industrial metals consumer remains resilient, supported in part by a construction boom. The dollar gained versus the euro after the European Central Bank raised growth and inflation forecasts but stuck with its pledge to provide stimulus for as long as needed. On Wednesday, the U.S. Federal Reserve’s move to raise rates as expected but sound a cautious note on inflation knocked the greenback lower.

Crude oil prices recovered from lows and settled flat shrugging off data forecasting a faster than expected rise in US shale oil production next year – Crude oil on MCX settled down -0.14% at 3651 recovered from the day's low even as the dollar index rebounded from December 6 lows, following an array of data from China, and the US, the world's largest consumer. Support seen after the IEA in its monthly oil market report, revised upward its projection for US oil production, warning that total supply growth could exceed demand growth in the months ahead. OPEC compliance with the deal to curb output reached its highest this year, rising to 115%. Sentiment on crude oil prices, meanwhile, remained positive amid the ongoing Forties pipeline shutdown earlier this week. The Forties pipeline carries 40% of North Sea oil and gas, and repairs could take weeks. Prices came under pressure after a larger-than-expected surge in U.S. gasoline stockpiles outweighed a larger-than-expected decline in U.S. crude inventories. While earlier this week, the Fed voted to increase interest rates by 25bps for the third time this year, while updating their three-year forecasts for growth, inflation, unemployment, and interest rates.