Precious metals prices had mixed movements today. With Gold
opening higher and Silver opening
flat, the bullions moved downwards during the first half of the trading session. After a slight downward move, the
prices were a stable for a while awaiting the rate decision from the Bank of
England. BoE was expected to raise its benchmark interest rates after 10 years,
and a rate hike was already factored-in in the markets. The BoE raised its rates by 25 basis points to 0.50%.
However, the post meeting comments by the BoE Governor, Mark Carney, were quite
dovish. He mentioned that a rate hike in this meeting does not mean that
another rate hike is imminent. The markets reacted to his statements and the
bullions rose on these dovish comments.
However, the overall outlook on bullions is still bearish. With the dollar
index looking to extend its gains, the pressure on precious metal prices continues. However, we can see some
short covering in the coming sessions.
Crude Oil prices
traded in a very narrow range in yesterday’s session. It seems the prices are
consolidating after scaling fresh highs this week. The U.S. crude oil prices
came within 2 cents of their 2017 high and then plunged after a disappointing
weekly report on American stockpiles, output and exports. Even though the trend
shows that the prolonged global glut of crude has come to an end, at these
levels, prices are also susceptible to disappointing data points and profit
booking by traders to cash in on their short term gains. The longer term
outlook remains bullish though. Technically, WTI just posted a "golden cross,"
a technical formation that occurs when an asset's shorter-term moving average
crosses over its longer-term moving average. In this case, crude oil's 50-day
moving average crossed over its 200-day moving average. This is an indication
of a strong bullish momentum
Base metals prices
retreated after rising swiftly for two trading sessions. The prices pulled back
across the board on Thursday as traders cashed in gains after nickel posted its biggest two- day jump in more than three years, zinc hit its highest in a
decade and aluminum matched last week's five-year peak. Nickel surged on Tuesday
and Wednesday on expectations that demand would be boosted by a rise in
electric car buying, while zinc hit its highest since August 2007 on deficit
expectations. However, it’s going to
be a long time before electric vehicles make a material impact on Nickel demand.
So it seems a pullback in prices is on the cards.
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