Gold: Gold rebounded more than 1 percent on
Tuesday, snapping two days of losses as risk appetite evaporated, pushing
global stocks lowerand knocking the dollar to a 17-month low against the yen.
That helped to reverse a two-day drop in gold that had sent prices back towards
their lowest since late February. However, uncertainty over the outlook for
U.S. monetary policy limited moves. Bullion prices pared gains after an
industry report showed the U.S. economy's service sector grew more quickly in
March. The U.S. trade deficit widened more than expected in February, the
latest indication that economic growth weakened further in the first quarter.
Gold is highly exposed to rising U.S. interest rates because they lift the
opportunity cost of holding non-yielding assets, and had been pinned in a range
by uncertainty over Fed policy.
Outlook:
We expect gold prices to trade sideways on the back of uncertainty over US
interest rates.
Crude Oil : Oil prices rose on Tuesday after Kuwait
insisted major producers will agree to freeze output later this month even as
key player Iran continued to balk at the plan. The market extended gains in
post-settlement trade after preliminary data on U.S. crude supply-demand for
last week from industry group American Petroleum Institute (API) showed a
surprise draw of 4.3 million barrels. Analysts polled by Reuters had expected
U.S. crude stockpiles to have risen by 3.2 million barrels to an eighth
straight week of record highs. The U.S. government's Energy Oil finished the
session higher on remarks from Kuwait's OPEC governor that a meeting of
oil-producing countries in Doha on April 17 will deliver an agreement to hold
output at January highs despite Tehran pouring cold water on the plan.
Outlook:
We expect crude oil prices to trade positive on the back of short covering
after slump in prices.
Natural Gas U.S. natural gas futures on Tuesday fell
more than 2 percent after the latest
U.S. weather model called for less cold
over the next two weeks than an earlier forecast, which should reduce heating
demand during that time. In early estimates, analysts said utilities likely
added 12 billion cubic feet of gas into storage, leaving 2.480 trillion cubic
feet of gas in storage at the end of what the federal government has called the
warmest winter heating season on record for the lower 48 U.S. states. Outlook
We expect Natural gas prices to trade negative on the back of profit booking
after sharp up-move in prices.
Outlook:
We expect Natural gas prices to trade negative on the back of profit booking
after sharp up-move in prices.
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