LME Copper prices are trading higher by 0.9 percent at $4589/tonne as comments from Federal Reserve Bank of New York President William Dudley that tighter financial conditions would be taken into account at the next policy meeting in March sparked hopes that the Fed might keep away from hiking rates in 2016. Also, weakness in the DX coupled with decline of 1.2 percent supported gains. MCX copper prices are trading higher by 0.5 percent at Rs.317.25/kg.
WTI oil prices are trading higher today by 1.3 percent at $32.69 per barrel, while MCX oil prices are trading higher by 2.3 percent at Rs.2220 per barrel. Gains were seen after comments from Russia’s foreign minister, Sergei Lavrov, who said the major producer would be willing to meet to discuss reducing oil output if there is consensus between members of the Organisation of the Petroleum Exporting Council (OPEC) and non-OPEC members to meet.
Slow growth in the US service sector raises concerns about the US economy in turn raising the safe haven status of the yellow metal. Less probability of rate hike further adds fuel to the rally in gold prices.
On an intraday basis, we expect oil prices to trade higher continuing its positive momentum from previous trading session as weak dollar and talks about cutting its oil output by Russia and other OPEC members will act as a positive factor.
LME Copper prices are expected to trade higher today owing to dovish comments by a Fed member. Also, short covering ahead of Lunar New Year holiday in China will be supportive. ~ Neal Bhai Reports