COMMODITY MARKET UPDATES OF THE DAY

Talking Points Of Commodity Market:

• Commodities’ prices are likely to get affected by Fed rate hikes and Chinese demand growth over the coming year.
• Commodities to perform well over coming year as Fed hikes rates, at full employment, inflation moving toward its 2% target
• Growth in Chinese demand for industrial metals likely to be muted

GOLD

Gold’s nascent rally petered out overnight, and gold fell to open in Asian trading around 1227.50. Yesterday’s post Macron victory commodity and risk rally ran into a brick wall in European trading as traders booked profits across most asset classes. A resurgent dollar saw the CBOE Volatility Index (VIX) fall to 9.77%, its lowest since 1993, suggesting the market thinks the world is a safer place than at any time in the last 25 years.

Whether you consider this a  gross mispricing of risk or not, the fall of the VIX further hollows out the safe haven bid that has underpinned gold for most of 2017. Should volatility remain becalmed, gold may find itself on the losing end of a deeper correction to the downside.

Gold this morning has initial resistance at yesterday’s high of 1236.50, followed by 1241.60. It is hovering rather nervously above the 100-day moving average at 1223.00 and then 1221.50, yesterday’s low. A close below these levels signalling the next possible down leg could be near.

Current Gold Price:

Currently, Gold is trading at 1,227.39, up +0.09%, having posted a daily high at 1,228.67 and low at 1,224.14.

CRUDE OIL:

Oil continued its rebound overnight but could not hold onto the gains with both Brent and WTI spot finishing roughly unchanged from the previous day. Soothing words from Saudi Arabia about extending the production cut deal, possibly into 2018 supported prices for most of the day until a resurgent U.S. Dollar took the heat out of the rally.

Oil will continue to be headline driven as we head into tomorrow’s crude inventory figures. However, one suspects that OPEC’s comments to talk up crude are already generating diminishing returns with both contracts still trading at the bottom end of their long term ranges

Brent spot trades at 49.10 this morning in Asia with resistance at 50.00 and support near the overnight low around 48.15.

WTI spot trades 46.35 with resistance at 47.00 and support initially at 45.50. A break of the latter may see newly minted longs at these levels heading for the exit door.

Current Crude Oil Price:

Currently, Crude Oil is trading at 46.44, up +0.02%, having posted a daily high at 46.66 and low at 46.39.

To know our latest recommendation or crude oil tips and gold tips along with stop loss and target price visit www.mmfsolutions.sg

Crude Oil tips, gold tips, crude oil signals,  gold signals, commodity tips, Commodity recommendations .....

CRUDE OIL MARKETS MOVING INTO REBALANCING

Saudi Arabia’s energy minister crossed the wires now, via Reuters, commenting on oil market fundamentals.

KEY POINTS OF THE DAY:

• Intends to play bigger role to meet Asia's growing energy demand
• Saudi-Pertamina refinery JV to enter feed stage in second half this year
• Saudi continues to explore expanding opportunities, with India being a prime target
• Alternative energy starting from small base, to see slow growth due to obstacles such as subsidies
• Not concerned oil demand will peak anytime soon
• Oil markets continue to improve from last year's low
• Markets recently impacted by slow demand season, ref maintenance, growth in non-OPEC supply
• Worst clearly behind us, market moving into rebalancing
• Expects US inventories to reduce on healthy US demand
• Expects China oil demand growth to match last year's

IN DETAIL:

Oil prices rose on Monday on a growing conviction that an Opec-led production cut initially scheduled to end in June would be extended to cover all of 2017, although a relentless increase in US drilling activity is seen capping gains.

The rise came after steep falls last week on the back of ongoing high supplies from countries that aren't participating in the cuts, including the United States where output is soaring.

Traders said the victory of Emmanuel Macron in the French presidential elections against far-right Marine Le Pen also supported oil prices as it raised hopes of a more stable European economy.

Brent crude futures, the international benchmark for oil prices, were at US$49.85 per barrel at 0020 GMT on Monday, up 75 cents, or 1.5 per cent, from their last close.

WTI Crude oil futures were trading at US$46.87 per barrel, up 65 cents, or 1.4 per cent from the last close.

To know our latest recommendation or crude oil trading tips along with stop loss and target price visit www.mmfsolutions.sg

Crude Oil tips, crude oil trading tips, crude oil signals, crude oil trading signals, commodity tips, Commodity recommendations .....

GOLD AND CRUDE OIL FORECAST

Commodity Market Talking Points:

• Gold rates keep on falling in FOMC meeting aftermath
• Crude oil rates fall to six-week low as selloff heats up 

Gold:

Gold charges retreated to a seven-week low as markets endured to reckon with the final results of the FOMC policy announcement. The spotlight now turns to April’s US employment report. This is predicted to show payrolls growth picked up last month after hitting a ten-month low in March.

The Fed has disregarded the first-quarter downturn in US development as “transitory”, signaling that it’s appetite for price hikes is undiminished. Because of this something shy of a dramatic disappointment is unlikely to offer the gold a lot of a lasting lifeline.

Gold Technical Level:

A break above $1229.51 (38.2% fib) would open up upside towards $1241.13 (Mar 24 low) and $1247.31 (Apr 10 low). On the lower side, breach of support at $1225.57 (previous day’s low) would expose $1216.80 (Feb 15 low) and $1209.14 (50% fib).

Crude Oil:

Crude oil prices maintain to sink – hitting a six-month low in Asian trade – after suffering the largest day by day decline from early March. The drop inside the benchmark WTI futures contract was observed by way of the highest extent in months.

Traders self belief in the capability of an OPEC production reduce scheme to offset swelling swing delivery has been eroding since mid-April. Liquidation extended after EIA reported that, amongst different things, US output rose for an 11th consecutive week. That’s the longest streak of returned-to-returned gains in over four years.

Crude Oil Technical Level:

A break above $ 45 (round number) could yield a test of $ 45.63 (daily top) beyond which $ 46.19 (daily pivot) could be tested. While a breach of $ 43.50 (psychological levels) would expose $ 43.03 (early Nov lows), below which downside opens up for a test of $ 42.20 (mid-Nov lows).

To know our latest recommendation or crude oil tips and gold tips along with stop loss and target price visit www.mmfsolutions.sg

Crude Oil tips, gold tips, crude oil signals,  gold signals, commodity tips, Commodity recommendations .....

CRUDE OIL ANALYSIS & PREDICTION

A new leg down on crude oil in the last 24 hours suggests that entire cycle from April highs is a bearish structure and it indicates on greater weakness ahead, but after a three wave bounce. Currently 5th wave of A is buying and selling around the potential support levels of 47.00.

Crude Oil may reach $70-80 range in 2019 & 2020

Nizar Al-Adsani, head of Kuwait’s national oil organisation Kuwait Petroleum Corporation (KPC) posts optimistic feedback on oil market basics, noting that oil demand may be ‘enormous’ as international investments have been slashed, within the wake of the oil rate crash.

Al-Adsani expects ‘enormous demand’ for crude oil in 2019 and 2020, with oil costs probable within the US$70-80 range per barrel.

He adds, “it’s a given” that we will not see oil at US$100 per barrel anymore, and sees the spot of rates inside the US$50-60 range for all – manufacturers, purchasers, worldwide oil agencies and shale drillers.

Current Crude Oil Status:

Currently, Crude Oil is trading at 47.72, down -0.21%, having posted a daily high at 47.75 and low at 47.59.

To know our latest recommendation or crude oil tips along with stop loss and target price visit www.mmfsolutions.sg

Crude Oil tips, crude oil trading tips, crude oil signals, crude oil trading signals, commodity tips, Commodity recommendations .....

SAUDI ARABIA’S ECONOMY SUCCEEDING IN PROTECTING KINGDOM AGAINST LOW CRUDE OIL PRICES

The prince overseeing Saudi Arabia's economy said his radical reforms were succeeding in protecting the kingdom against low oil prices, and he promised massive investments in coming years to help diversify the economy beyond oil.

"Although our prices dipped to as low as US$27 for more than one year...the government managed to shield economic indicators from the negative impact," Deputy Crown Prince Mohammed bin Salman said in a rare nationally televised interview on Tuesday. "Gross domestic product is still growing - not at global rates, true, but it is not going into deflation."

He said more than half of the tens of billions of dollars that Riyadh expects to raise by selling shares in national oil giant Saudi Aramco would be reinvested domestically by the kingdom's top sovereign wealth fund, the Public Investment Fund (PIF), to create jobs and earn revenue.

In the three years after the share sale, the PIF will spend over 500 billion riyals (S$185.3 billion), with between 50 and 70 per cent going to develop promising non-oil sectors such as mining and logistics within Saudi Arabia, he added.

Prince Mohammed, 31, first described his reform plans to the public in a nationally televised appearance almost exactly a year ago.

Recent Investment Outlook:

In recent months the outlook has improved. The deficit has started to shrink and Riyadh has bought itself time to reduce its reliance on oil by establishing a programme of overseas bond issues, reducing the need to draw down its financial reserves.

Other top Saudi officials trumpeted those achievements in presentations to hundreds of foreign bankers and investors at a Riyadh investment conference organised by Euromoney magazine on Tuesday.

Finance minister Mohammed al-Jadaan said the government was on track to cut its deficit to about US$53 billion this year, and that the government was so far in 2017 paying over 90 per cent of its bills to the private sector within 30 days of the due date.

Delayed payments by the government were a big drag on the economy last year, and in December authorities promised they would in future make all payments within a less stringent target of 60 days.

Problems:

Big uncertainties still overshadow Saudi Arabia's effort to restructure its economy. One is how much money the government can raise through the sale of the Aramco shares. It has predicted the sale will value the company at US$2 trillion, but some private analysts expect a significantly smaller figure.

Prince Mohammed indicated on Tuesday, however, that the Aramco sale would go ahead along the lines he described a year ago, saying a stake close to 5 per cent would be offered in 2018.

He also said authorities would announce a programme to address the kingdom's shortage of private housing in the third quarter of this year, aiming to arrange the construction of over a million housing units through soft loans or the Saudi Real Estate Development Fund. He did not give a time frame.

Much of the Prince Mohammed's economic plan envisions transferring responsibility for development projects and public services to the private sector from the government.

For example, Prince Mohammed said that while the government was committed to providing medical treatment to its citizens, it would not necessarily manage hospitals. Officials have begun preparing plans to sell off some hospitals, perhaps through private equity deals.

The government's austerity policies have brought growth of the non-oil part of the economy near zero. In an effort to support growth, the government reversed a highly unpopular austerity step last month, restoring allowances to public sector workers after cutting them last September to save money.

Prince Mohammed said the relaxation of austerity was due to improved oil and non-oil revenues. But he added that the government was prepared to restore austerity steps if state finances passed through another crisis.

Current Crude Oil Status:

Currently, Crude Oil is trading at 47.94, up + 0.59%, having posted a daily high at 48.17 and low at 47.91.

To know our latest recommendation or crude oil trading tips along with stop loss and target price visit www.mmfsolutions.sg

Crude Oil tips, crude oil trading tips, crude oil signals, crude oil trading signals, commodity tips, Commodity recommendations .....

CRUDE OIL CONTINUES TO STAY BELOW TO $49

Crude oil expenses continue to stay underneath selling stress on the first buying and selling of the week, pushing the barrel of West Texas Intermediate to a new session low at $48.60. Following the preliminary drop, the barrel of WTI turned into ability to regain some of the losses and is now trading at $48.75, down 1.15% at the day.

President Trump signed an executive order on Friday that would permit the expansion of oil drilling interest in the US to waters near to California and other coastal regions. The growing crude oil production has been the principle motive why the OPEC/non-OPEC output reduce deal hasn't had the intended impact on the rates and this trendy order would even in addition upload to the overall amount of output from the U.S. Moreover, earlier today, a record through Reuters suggested that the Saudi Aramco is planning to release an oil terminal the Red Sea, which would increase the total loading and export capacity to 15 million bpd.

Saudi Aramco to launch oil terminal on the Red Sea next year

State oil giant Saudi Aramco plans to launch its overhauled Muajjiz oil terminal on the Red Sea next year, lifting its total loading and export capacity to as much as 15 million barrels per day, Saudi officials said.

Located on the Red Sea, Muajjiz had been used as an export terminal for Iraqi crude through the Iraqi Pipeline in Saudi Arabia (IPSA), but it has not carried Iraqi crude since Saddam Hussein invaded Kuwait in 1990.

Bringing Muajjiz terminal online next year would boost the kingdom's total oil handling capacity to 15 million barrels per day (bpd) from 11.5 million bpd currently, Mohammed al-Qahtani, Aramco's senior vice president for upstream, told Reuters in an interview at the company's headquarters in Dhahran.

The move will boost Aramco's IPO-ARMO.SE ability to meet its commitments to customers and maintain its export capability from the kingdom's west coast.

Saudi Arabia has three primary oil export terminals, including the port of Ras Tanura on the Gulf, with an average capacity of around 3.4 million bpd and which handles most of Saudi Arabia's exports, according to the U.S. Energy Information Administration (EIA).

The Ras al-Ju'aymah facility on the Gulf has an average handling capacity of about 3 million bpd and can accommodate the largest oil tankers for crude loadings.

The Yanbu terminal on the Red Sea, from which most of the remaining volumes are exported, has an average handling capacity of 1.3 million bpd.

Current Status Of Crude Oil:

Currently, Crude Oil is trading at 48.75, down -0.18%, having posted a daily high at 48.80 and low at 48.66.

Technical Levels to Watch:

The barrel of WTI could face the first hurdle at $49 (psychological level) ahead of $49.75 (Apr. 28 high) and $50.20 (Apr. 26 high). To the downside, supports align at $48.20 (Apr. 27 low), $47.80 (Mar. 28 low) and $47 (Mar. 22 low/psychological level).

To know our latest recommendation or crude oil tips along with stop loss and target price visit www.mmfsolutions.sg

Crude Oil tips, crude oil trading tips, crude oil signals, crude oil trading signals, commodity tips, Commodity recommendations .....

5 REASONS PRICE OF GOLD MAY RISE IN 2017

The gold market observes a steady charge rise in recent years. Clearly, factors affecting the price of gold involve the basics of aesthetic and precautionary gold demand.

The gold market price has dramatically accelerated during the last decade; the gold price has made this yellow metal an attractive trading asset. The demand for gold has especially increased in the Asian countries such as Malaysia, Singapore, China, Hong-Kong etc.

REASONS CONFIRMING THE RISE IN GOLD PRICE

Higher inflation expectations:

As per the analysis, inflationary guidelines adopted by Singapore and US are in all likelihood to increase speculative flows into ETFs related to gold.

In 2017, gold is mainly pushed by using better fiscal spending among rising rates, which might sooner or later cause inflation higher.

Markets have a tendency to save their capital in gold with a purpose to hedge against inflationary stress.

Ticking up of the stock market:

The stock market has returned excellent yields in the years following the Great Recession, and monetary policy has allowed investors the ability to lever up at relatively cheap rates of interest.

In other words, there seems to be little room for gold in a levered portfolio of income-producing assets at this time.

Fall in the Price Of Dollar:

Gold and dollar each are worldwide. Gold and dollar rate are inversely proportional. whilst Dollar’s rate fall people will not buy gold at that point because they need to pay more dollars to buy gold and when the trading price will become high, traders will be inclined to buy gold at that time due to the fact they can pay fewer dollars.

Rising Crude Oil Prices:

Normally the rates of gold and crude oil are associated. The Higher price of crude oil in commodity trading Malaysia market might translate into higher prices of gold.

Geopolitical unrest:

Geopolitical issues always raise the price of gold. As in 2017, geopolitical tensions over North Korea and French Presidential election show a drastic change in the gold rates and hence increase the demand for gold.

BOTTOM LINE:

Being a gold trader it’s important to know the condition of gold market and price of gold. Rising gold could be both beneficial and leads to loss depend totally on your strategy and decision making. For proper decision, you should analyze the market properly.

To know our latest recommendation or gold tips along with stop loss and target price visit www.mmfsolutions.sg

Goldtips, gold trading tips, gold trading signals, gold signals, gold trading picks, commodity tips, gold trading recommendations .....