TODAY COMMODITY MARKET LEVELS AND OVERVIEW UPDATE 22 NOV 2017.



Bullion - Opens on mixed Note Gold -29320-29330 Silver -39300-39325 ]

Energy - Opens on positive Note Crude Oil -3730-3740 Natural Gas -196.10-196.40 

Base Metals - Opens on mixed Note Copper -447-447.30 Nickel -758-756 Lead -160.30-160.40 Zinc - 210.90-211 Aluminium -134.70-134.80


Precious metals are likely to open flat but the broader range remains intact due to lack of major triggers. Safe haven demand remains lower as equities globally remain at record highs and volatility remains subdued. The US dollar however remains weighed down by a flattening yield curve. The difference between shorter dated and longer dated bonds in the US is at its lowest in a decade suggesting markets are pricing in lower inflation and consequently slower rate hikes next year.


Base metals have been gaining strength over the last couple of sessions, but aluminum continues to be under pressure falling to its lowest in more than three months, dragged down by signs of robust global production. Global production for October, excluding China, was 2.179 million tonnes, up from 2.1 million tonnes in September. However, Chinese daily average output fell to 82,100 tonnes in October against 86,900 tonnes in September.

Crude oil is expected to open higher as the API reported a sharp drawdown of 6.3 million barrels in US inventories. Natural gas remains under pressure owing to lack of cold weather in the US. Oil markets will now await cues from OPEC meeting on Nov 30th. OPEC will be expected to extend the duration of its production cuts and failure to do so may lead to fresh selloff in oil prices.  
 

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