Wednesday, August 16, 2017 MAJOR COMMODITIES. News & Development. For Private Circulation Only

Transcription

1 Wednesday, August 16, 2017 For Private Circulation Only MAJOR COMMODITIES Commodity Expiry High Low Close Change Commodity Expiry High Low Close ($) Change Gold Oct Gold (Oz) Oct Silver Sep Silver (Oz) Sep Crude Oil Aug Crude Oil Sep Natural Gas Aug Natural Gas Sep Copper Aug Copper 3M Nickel Aug Nickel 3M Aluminium Aug Aluminium 3M Lead Aug Lead 3M Zinc Aug Zinc 3M News & Development North Korean leader Kim Jong Un has delayed a decision on firing missiles towards Guam while he waits to see what the United States does, the North's state media reported on Tuesday as the United States said any dialogue was up to Kim. U.S. retail sales recorded their biggest increase in seven months in July as consumers boosted purchases of motor vehicles and raised discretionary spending, suggesting the economy continued to gain momentum early in the third quarter.

2 Gold Gold fell nearly 1 percent, down for a second day on Tuesday after better-than-expected U.S. economic data and easing tensions over North Korea encouraged investors to buy riskier assets, boosting stocks, the U.S. dollar and bond yields. Gold, seen as a safe haven in times of uncertainty, rose to a two-month high of $1, on Friday after a week of escalating military threats between Washington and Pyongyang. But fears of conflict eased when North Korean leader Kim Jong Un on Tuesday signalled he would delay a decision on firing missiles towards Guam, a U.S. territory in the Pacific. Gold's fall accelerated after strong U.S. retail sales in July and strength in an index of business conditions in New York state suggested strong economic growth. A strong dollar is negative for gold prices because it makes dollar-priced gold costlier for holders of other currencies, while higher bond yields raise the opportunity cost of holding non-yielding bullion. Also weighing on gold was the prospect of another increase in U.S. interest rates after an influential Federal Reserve official said on Monday he expected one more rise this year. Gold Strategy S2 S1 Close R1 R2 Oct R We expect gold prices to trade negative on the back of better-thanexpected U.S. economic data and easing tensions over North Korea. Silver Silver was down 2.1 percent at $16.65 an ounce, falling below its 100- and 200-day moving averages. Silver Strategy S2 S1 Close R1 R2 Sep R We expect silver prices to trade sideways on the back of profit booking after sharp up move. Page 2

3 Crude Oil Oil prices settled little changed on Tuesday after slumping to three-week lows as the U.S. dollar climbed and signs of weaker petroleum demand in China weighed the market down for a second day. Chinese oil refineries operated in July at their slowest daily rates since September, official data showed. The drop was steeper than expected, raising concerns over the state of Chinese demand and the level of domestic stocks. Efforts by OPEC and other producers to limit output have helped lift Brent past $50 a barrel, but production elsewhere, particularly in the United States, has pressured prices. Crude Oil Strategy S2 S1 Close R1 R2 Aug R We expect crude oil prices to trade negative on the back of poor demand. Natural Gas We expect Natural gas prices to trade negative on the back of profit booking after sharp up-move in prices. Nat Gas Strategy S2 S1 Close R1 R2 Aug R \ Page 3

4 Base Metals Lead prices climbed on Tuesday after Beijing banned imports of lead ore from North Korea, while other base metals rebounded as geopolitical tensions eased and lending data in top metals consumer China beat expectations. Investors moved back into riskier assets such as commodities and shares after North Korea's leader delayed a decision on firing missiles towards Guam while he waits to see what the United States does next. Data showed that Chinese new loans last month came in at billion yuan ($123.6 billion), higher than analyst forecasts of 800 billion, calming investor nerves after a cooling of the property market and weak industrial output. Lead prices rose after China issued an order on Monday to implement United Nations sanctions on North Korea, banning imports of lead ore among other commodities. Jul/Aug* Strategy S2 S1 Close R1 R2 Copper* S Nickel Sideways Alum S Lead S Zinc S We expect base metal prices likely to trade volatile on the back of mixed fundamentals. LME Inventories Copper Lead Zinc Aluminium Nickel Current Stock Change % Change % -1.78% -0.93% -0.18% 2.39% Page 4

5 For Further Assistance Contact: Ashish Shah Tejas Nikhar Devashish Srivastava AVP ashish.shah@sushilfinance.com Sr. Research Analyst tejas.nikhar@sushilfinance.com Research Analyst devashish.srivastava@sushilfinance.com WE / OUR CLIENTS / OUR RELATIVES MAY HAVE PERSONAL TRADING / INVESTMENT INTEREST IN THE STOCKS MENTIONED HERE IN. STATEMENT OF DISCLAIMER This report includes information from sources believed to be reliable but no independent verification has been made and we do not guarantee its accuracy or completeness. Opinions expressed are subject to change without notice. This report cannot be construed as a request to engage in any transaction involving the purchase or sale of a futures contract. The risk of loss in trading futures contracts can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. Additional information with respect to any commodities referred to herein will be available on request. Sushil Global Commodities Pvt. Ltd. and its connected companies, and their respective Directors, Officers and employees, may, from time to time, have a long or short position in the commodities mentioned and may sell or buy such commodities. Sushil Global may act upon or make use of information contained herein prior to the publication thereof. This data sheet is for private circulation only. While utmost care has been taken in preparing the above, we claim no responsibility for its accuracy. We shall not be liable for any direct or indirect losses arising from the use thereof and the investors are requested to use the information contained herein at their own risk. Sushil Global Commodities Private Limited Member: NCDEX, FMC Regn.No MCX, FMC Regn.No Genius, 4 th Road, Khar (W), Mumbai Tel.: Fax: commodities@sushilfinance.com Page 5