Highlights
LME's three-month copper rose to $6,835 per tonne from $6,810 a tonne at Thursday's close. In after hours trade it firmed to $7,010 per tonne.
Gold has fallen in five of the last six days, and the December contract on the Comex division of the New York Mercantile Exchange had its worst week since February, losing $49.40, or 4.23%
What to expect today!
We expect Gold to remain range bound for the day. However, we recommend sell on rallies for the bullion as some more profit booking may come in. Sell with a stop loss of $1039 for a target of $1092 an ounce.
We maintain a bullish view on copper. Copper prices are expected to see a bounce back tracking positive economic release from China. We recommend buy on dips for a target of $7000.
Crude Oil has broken below a crucial support level of $70. We recommend sell on rallies with a stop loss of $71.2.
Rear View Mirror- “Copper ends strong as better data helps outlook; Gold hits four week low after U.S. data; Crude Sinks To Two-Month Low On Stronger Dollar”
Having fallen to a 2-week low on Thursday, longer-term investors took advantage of the declines, especially after data portrayed a brighter outlook for copper demand. LME's three-month copper rose to $6,835 per tonne from $6,810 a tonne at Thursday's close. In after hours trade it firmed to $7,010 per tonne. London copper warehouse stocks surged by 4,450 tonnes to 466,075 tonnes on Friday.
Copper's healthier demand prospects were raised after a slew of stronger-than-forecast U.S. economic data drove prices higher. Sales at U.S. retailers rose more than expected in November. The data should help ease concerns that the economy's recovery could falter because of lackluster demand.
Initially, Chinese industrial output data helped sentiment. China's output surged in November at its fastest pace since June, 2007, underlining the economy's brisk recovery from global downturn. China's imports of unwrought copper and semi-finished products rose 10.3 % in November from October, defying expectations for a flat to lower result.
In other metals, aluminum ended at $2,275 from $2,203, after rising to $2,289, its highest in 14 months. Nickel ended at $16,650 a tonne from $16,275 while lead finished at $2,301 from $2,275. Zinc ended at $2,298 a tonne versus $2,270 and tin bucked the trend, ending down at $15,200 from $15,300.
Gold hit a four-week low Friday after strong U.S. retail sales boosted the dollar amid renewed expectations that interest rates might rise sooner than expected. Gold has fallen in five of the last six days, and the December contract on the Comex division of the New York Mercantile Exchange had its worst week since February, losing $49.40, or 4.23%.December gold hit a low of $1,110.80 an ounce before settling down $6.30 to $1,119.40. The dollar recouped its early decline to turn higher against the euro midafternoon after data showed U.S. retail sales rose more than expected in November, raising hopes of a self-sustaining economic recovery.
Crude futures dropped to a two-month low Friday as the dollar--but not oil demand--received a boost from the quickening pace of the U.S. economic recovery. Light, sweet crude for January delivery settled 67 cents, or 1%, lower at $69.87 a barrel on the New York Mercantile Exchange. Futures have now dropped for eight consecutive sessions, shedding 11% of their value.
Earlier this year, signs that the world's biggest oil consumer was pulling out of recession raised hopes that demand would rise. Instead, demand has stagnated in the U.S. and supplies of fuel are rising globally, although crude stockpiles may have begun to decline. Meanwhile, investors have begun buying the dollar, anticipating that a quicker rebound in the economy could lead the Federal Reserve to raise interest rates. That's left oil futures with little support for a push toward the upside, and a rapidly strengthening dollar pulling down.
Oil demand is expected to rise by 1.5 million barrels a day next year, the International Energy Agency said Friday, slightly more than this year's forecasted decline. Combined global oil and fuel inventories are starting to drop, but could still cover 59.4 days of demand, 2.5 days higher than a year ago, the IEA said in its monthly market report.
Courtesy: AUM Capital Market Pvt. Ltd.
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