U.S. West Texas Intermediate and internationally-favored crude oil futures finished slightly higher on Wednesday - 12 Oct 2017

Commodity Intraday Tips
GOLD) Weak U.S. Dollar Could Drive Prices Over $1296.40 - Gold closed lower on Wednesday as investors showed a mixed response to the Fed minutes and other external factors. Increased chances of a Fed rate hike weighed on gold prices, but concerns over low inflation were supportive. Also underpinning gold was the news that Catalonia’s leader balked at making a formal declaration of independence from Spain, sending the Euro higher and the U.S. Dollar down. Due to the importance of the Fed minutes, gold traders showed limited response to reports that the U.S. military flew two strategic bombers over the Korean peninsula in a show of force late Tuesday and that President Trump met top defense officials to discuss how to respond to any threat from North Korea. The U.S. Dollar declined against a basket of currencies on Wednesday, hitting a two-week low, in reaction to the U.S. Federal Reserve minutes which revealed that central bank policymakers are open to an interest rate hike in December, but are still concerned about weak inflation. The dollar also fell under pressure on fading hopes on Trump’s tax plan. Additionally, the Euro, which represents 57 percent of the index, reached a two-week peak on less worries about Catalonia. According to the Fed minutes, several policymakers expressed some concerns over low inflation, saying they would like more data in the next few months when deciding on future rate hikes. That view pointed to a divergence between the Fed and the financial markets. Essentially, the view within the Fed raised some doubts among traders that third rate hike in 2017 would be a sure thing, though it has largely been priced into the futures market.

Chile Copper Export Hits 3-Year High in September, Sees Copper Price Rise Later This Year -December Comex High Grade Copper futures spiked to its highest level since September 8 on Wednesday as speculators continued to respond to expectations of potential shortages in China and as a weaker U.S. Dollar helped drive up foreign demand for dollar-denominated copper. The main trend is up according to the daily swing chart. The market is in no danger to turn the main trend to down, but it is in the window of time for a potentially bearish closing price reversal top. Chile’s copper export value reached $3.18 billion in September, the highest over the past three years. Pan Pacific Copper to Hike Copper Production in Next 6 Months. Chile’s  mining minister Aurora Williams said copper prices will rise mildly for the remainder of the year, but will unlikely push to $3 per pound. US Copper Imports Fall Sharply in August and Exports Grow.      

CRUDE OIL - U.S. West Texas Intermediate and internationally-favored crude oil futures finished slightly higher on Wednesday as investors prepared for the release of weekly inventories data from the American Petroleum Institute (API) on Wednesday and the U.S. Energy Information Administration (EIA) on Thursday. Oil prices rose for a third day on Wednesday as OPEC forecast higher demand for 2018 and heightened tensions in Kurdistan supported prices. In addition to forecasting stronger demand for its oil in 2018, OPEC said production cuts by producing nations were clearing the global crude glut. Saudi Arabia said it pumped 9.97 million barrels per day in September, up from August, but still below target. In other news, the world’s second largest crude trader Glencore said the market can absorb the volumes along with those from the North Sea and West Africa. “I think the market is able to absorb that 2 million bpd of U.S. exports easily,” Glencore’s head of oil trading Alex Beard told the Reuters Global Commodities Summit. “I don’t think there are many losers out there.”


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