Safe haven play back in precious metals, Oil falls on over supplied markets: Angel Commodities Broking

Views by Mr. Prathamesh Mallya (Chief Analyst- Non-Agri Commodities & Currencies, Angel Commodities Broking):

"COMEX gold and MCX gold prices both rallied by more than 2.2 percent this week on account of simmering tensions between US and North Korea and exchange of threats prompted investors to move towards safe haven asset. Besides, falling global equities are also acting as a push for the yellow metal.

WTI Oil prices declined around 3 percent this week while MCX gold falls by around 2 percent. IEA commenting about balanced oil markets taking longer time than usual and increasing supplies from Nigeria and Libya the two members of the OPEC are acting as negative factors.

Base metals enjoyed a wild rally in the earlier part of this week (7th - 11th Aug'17) buoyed by an unprecedented positive momentum in Steel and news of more than expected capacity cuts in Aluminium. This pushed Copper and Aluminium prices to the highest since December 2014 while Zinc and Nickel rushed to fresh five month high levels on the LME.

In the week ahead, gold and silver rally will continue towards Rs.29600/10 gms and 40000/kg mark for silver while oil prices may take a breather and fall lower towards Rs.2900/bbl mark.

Base Metals will also face a breather from the recent rally ahead of the crucial Chinese industrial output and fixed asset investment data due next week. Also, the ongoing tensions between the US and North Korea will exert pressure on risky assets. Copper is likely headed for a fall towards Rs.395/kg mark."

Source : Equity Bulls

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