TODAY COMMODITY MARKET REPORT UPDATE 01 SEPT 2017.
Bullion - Opens on mixed Note Gold -29730-29.750 Silver -39700-39750
Energy - Opens on mixed Note Crude Oil -3010-3015 Natural Gas -195-196
Base Metals - Opens on mixed Note Copper -4440-439.50 Nickel -755-756 Lead -152.50-152 Zinc - 200.70-200.80 Aluminium -135.20-135.40.
Precious Metals
Precious metals are likely to open flat after a strong
rebound yesterday as US inflation data missed
expectations. The core PCE, a measure of inflation
came in at 1.4% y/y, the lowest in two years. This
wiped out the gains in the dollar index we saw after
the data on Wednesday. The dollar was also hit by
comments from US Treasury Secretary Steven
Mnuchin who suggested that a weaker currency is
somewhat better for trade. Data earlier this week
showed that US GDP was 3.0% in Q2 compared to
2.6% in the first estimate.
Base Metals
Base metals continue to trade firm for yet another
session backed by better than expected US GDP and
Chinese PMI numbers, and correction in DXY. China
plans to conduct 15 rounds of inspections during its
new campaign to curb smog during winter, the
environment ministry said on Friday, as the country
strives to meet politically important air quality targets.
Aluminium climbed to a 13-month high on the back of
fresh investment money coming into metals, betting
on a stronger recovery in demand next year.
Energy
Crude oil is likely to open flat after huge bounce back
yesterday post OPEC data. Estimates suggest that
OPEC output fell by 170,000 bpd in August owing to
fluctuating Libyan output. Gasoline prices saw bigger
action with prices jumping 13% to highest in two years
as impact of hurricane is creating crunch in product
markets. The hurricane forced refineries across US
Gulf Coast to shut down impacting at least 3.6 million
bpd of refining capacity in Texas and Louisiana. US
Energy Department will release 500,000 barrels of
crude oil from its Strategic Petroleum Reserve to ease
supply crunch.
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