Gold Silver Reports ~ LME Copper prices traded higher by 0.2 percent as Copper premiums in China rose to $95-$100 last week, the highest since late October as Chinese stockpiling picked up ahead of next month’s Lunar New Year. besides, the State Grid Corporation of China (SGCC), the country’s biggest single copper user, cut its 2016 investment but overall spending in 2016-2020 will climb by more than a quarter compared with the past five years. However, surge in LME stocks along with mixed markets sentiments restricted sharp upside. MCX copper prices are trading higher by 0.2 percent at Rs.301.9 per kg.
*WTI oil prices are trading lower today by 4.71 percent at $30.92 per barrel, while MCX oil prices are trading higher by 2.14 percent at Rs.2100 per barrel. Oil prices fell 3 percent on Monday as Iraq announced record-high oil production feeding into a heavily oversupplied market, wiping out much of the gains made in one of the biggest-ever daily rallies last week. The closing of large amounts of short positions had caused a huge rally on Friday that was largely undone again on Monday, creating huge volatility in the oil market.
*Besides, the ECB’s boost in hinting towards increasing its monetary base says that Euro area needs to be lifted by the efforts of the central bank which in turn raises the safe haven appeal of the yellow metal. Besides, the Federal Open Market Committee meets this week and is widely expected to leave its federal funds rate unchanged at 0.25-0.50 percent when policy~makers conclude their meeting on Wednesday.
*The closing of large amounts of short positions had caused a huge rally on Friday that was largely undone again today, creating huge volatility in the oil market. The funda~mentals of the oil market still remain bearish for the commodity.
*LME Copper prices are expected to trade higher today as Chinese copper premiums rose as stockpiling picked up ahead of next month’s Lunar New Year. However, crude oil prices reversed gains owing to oversupply and profit-taking will cap gains.
*Spot gold prices are trading higher today by $6 at $1104 per ounce while MCX gold prices are trading higher by 0.72 percent at Rs.26349 per 10 gms. Gold edged higher on Monday, buoyed by expectations that the U.S. Federal Reserve may have fewer chances to raise interest rates this year in the face of a wobbly global economy. That bodes well for non-interest bearing gold, which fell more than 10 percent last year, after the Fed lifted rates for the first time in nearly a decade in December. ~ Neal Bhai Reports