Gold, silver gain on heightened geopolitical tension

Gold traded higher in the early hours of trade on Friday as a result of the increasing geopolitical tensions in the Korean Peninsula, coaxing the investors to invest in the safe-haven asset.

MCX Gold was trading 0.56% higher at Rs 29,729 at around 1030 hours, whereas, MCX Silver was trading 0.54% higher at Rs 40,050 at the same time in Friday’s trade. The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust witnessed a surge in its holdings by 0.73% to 852.24 tonnes in Thursday’s trade.

Meanwhile, domestic equity markets witnessed a negative sentiment in the early trade hours as rupee plunge below 65-mark, hitting its lowest level in the past five and a half months. The BSE Sensex was trading 260 points, or 0.80% lower at 32,110 level at 1040 hours, while NSE Nifty index was down by 99 points, or 0.97%, at 10,023 level at around the same time.

The precious metal is expected to trade sideways on the back of increasing global political tension, however, the movements in the dollar index and the ECB chief, Draghi speech is likely to reflect on the price movement of the bullion.

 

                 
                                           GOLD COMMODITY TIPS

BUY COPPER ABOVE 417.80 TGT 419.80-422.80-426.80 SL BELOW 414.50 CMP 417.80

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Oil edges up on rising refinery demand, falling U.S. rig count

SINGAPORE - Oil markets were firm on Monday and remained near multi-month highs hit late last week as the number of U.S. rigs drilling for new production fell and refineries continued to restart after getting knocked out by Hurricane Harvey.

U.S. West Texas Intermediate (WTI) crude futures were at $50.01 per barrel at 0547 GMT, and close to the more than three-month high of $50.50 reached last Thursday.

Brent crude futures, benchmark for oil prices outside the United States, were at $55.71 a barrel, up 9 cents and not far from the almost five-month high of $55.99 touched on Thursday.

"Demand forecasts from OPEC and IEA ... continued to improve sentiment in the market. Refineries are also reporting a much better recovery from the recent hurricanes," ANZ bank said on Monday.

Oil refineries across the Gulf of Mexico and the Caribbean were restarting after being shut due to hurricanes Harvey and Irma, which battered the region over the past three weeks.

Royal Dutch Shell's Deer Park refinery in Texas was among the latest, beginning its restart on Sunday. The plant can process 325,700 barrels per day.

                               MCX COMMODITY TIPS

SELL LEAD BELOW 152 TGT 151.40 SL ABOVE 152.80

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