Market and product

Crude oil prices today got fueled up from starting of the week due to fresh tensions in the Middle East. As mentioned in our morning report, Saudi mentioned cutting every tie with Iran after their Tehran embassy was set to fire on Sunday showing their protest against assassination of Shiite cleric. As per evening updates, Brent is showing gains of around 1.50%, whereas WTI international is up by 0.50%. We continue with our buy side view in crude prices for the evening session.

NG prices today showed huge losses during the day despite of having positive fundamentals. US weather forecast is actually suggesting for support in hike in NG prices. With squeezing down of HDD levels, NG might get consumed more in coming weeks and thus lead to higher inventory withdrawals. We expect a trend reversal in NG prices during late evening. Thus, we continue with our buy side view in NG for evening session.

With starting of the New Year, base metals slumped down seeing continued weakness in Chinese PMI. As the China Caixin manufacturing PMI dropped to 48.2 from 48.6 showing its biggest five months drop, global stocks started falling. Weaker than expected manufacturing data, thrashed down the stocks by 7%. Weaker Chinese currency also pressurized their stocks today. LME inventory data also remained flat for every metal. As of evening session, copper, zinc and aluminum are down by almost 1.50%, whereas nickel and lead by 0.50% each. We recommend selling Cu, Zn and Al from higher levels while expect a range bound trade in Ni & Pb.

Bullion prices surged in morning session on the back of geopolitical tensions in Middle East and a weaker dollar. Strength was seen in the bullion as the global equities plunged led by China after the weaker than expected PMI data. In data, a string of manufacturing PMIs from Euro zone countries as well as the final manufacturing PMI, the ISM manufacturing PMI, construction spending and ISM manufacturing prices from the US are due later today. For the evening session we continue with our morning stance of buying gold while a range bound trade can be seen in silver.