OIL MARKETS TIGHTEN,BRENT APPROACHES $60 BARRELS | TODAY COMMODITY MARKET NEWS OUTLOOK 27 OCT 2017.


Bullion - Opens on negative Note Gold -29250-29230 Silver -39250-39260 

Energy - Opens on mixed Note Crude Oil -3427-3430 Natural Gas -198-198.50 

Base Metals - Opens on negative Note Copper -453.20-453.50 Nickel -751-755 Lead -160-159.75 Zinc - 211-211.50 Aluminium -141.10-141.25



Precious Metals 
Precious metals are likely to open lower as the dollar surged amid progress on the tax reform front. The US House passed a budget resolution yesterday which paved the way for introducing tax reform. Janet Yellen is probably ruled out as the next Fed Chair which increased chances of John Taylor or Jerome Powell to be the next Fed Chairman. The dollar also found support as the ECB announced a dovish taper in its meeting. The ECB will halve its bond purchases to €30 billion a month and will continue its purchases almost till the end of 2018. 

Base Metals 
Metals corrected from highs after LME aluminium surged to its highest in more than five years on expectations of dwindling supply of both aluminium and its raw materials, as China imposes restrictions on industrial output over winter. The seasonal curbs on aluminium production itself will not be as severe as expected. Chinese nickel futures were under pressure in line with steel prices, reversing earlier gains and on track to end the weak sharply lower

Energy 
Crude oil prices are likely to extend gains as tensions persist between Iraq and Kurdistan and as the Saudi Prince backed the continuation of OPEC supply cuts. Iraq rejected the ceasefire proposal from Kurdistan and this is likely to increase the conflict between Kurdish and Iraqi forces for control of key territories. Iraqi and Kurdish crude flows along Kirkuk-Ceyhan pipeline are also being no longer blended. 

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