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MCX Gold yesterday settled down by 0.17% at 49448 as the U.S. dollar eased, reflecting relief over an orderly transition of power and amid bets on increased U.S. government spending under President Joe Biden’s administration.
Gold MCX 49300 to 48963 = 33700 per lot
Copper MCX 604 to 596.10 = 20000 per lot
Gold MCX Tips Today for Trader’s
Inflation expectations are on the rise, given the very dovish approach from U.S. Treasury secretary nominee Janet Yellen as well as Biden’s stance towards fiscal stimulus.
The Bank of Japan left its monetary policy unchanged, raised growth projections and noted that risks to both economic activity and prices were skewed to the downside.India’s imports of gold contracted 52% YoY in 2020.Certainly, the pandemic and high price did the damage.
The last quarter displayed some early hope of demand returning ahead. Euro zone finance ministers pledged continued fiscal support for their economies, while focus in the United States remains on Biden’s $1.9 trillion stimulus package proposal.
Fed Chair Jerome Powell also said there was no reason to alter the central bank’s highly accommodative stance with the U.S. economy still far from its inflation and employment goals.
Hedge funds and money managers reduced their bullish positions in COMEX gold contracts in the week to Jan. 12, the U.S. Commodity Futures Trading Commission (CFTC) said. Physical gold in China was sold at a small premium for the first time since early 2020, as demand picked up ahead of the Chinese new year.
Copper MCX Tips Today for Trader’s
MCX Copper yesterday settled up by 0.1% at 614.85 as risk sentiment surged on hopes that U.S. President Joe Biden would introduce more economic stimulus into the world’s biggest economy to remedy damage wrought by the coronavirus pandemic.
However, keeping metals prices in check is top consumer China’s increasing new COVID-19 cases despite a flurry of recent measures to contain the outbreak in the northeast.
China’s refined copper production in December surged 10.9% year-on-year to a monthly record high, while annual output also set an all-time peak in 2020 as smelters recovered from the impact of COVID-19 and ramped up supply to meet resurgent demand.
December refined copper output reached 986,000 tonnes, data from the National Bureau of Statistics data showed, smashing the previous monthly record of 945,000 tonnes in November.
Annual refined copper production in China, the world’s top copper consumer, rose 7.4% in 2020 to 10.03 million tonnes, beating the previous peak in 2019 and exceeding 10 million tonnes for the first time.
China’s imports of copper concentrate from Australia dried up completely in December, customs data showed, as smelters shunned Australian supply amid tense bilateral ties. Imports of copper ores and concentrates from Australia were zero tonnes last month, according to General Administration of Customs data.