MORNING MEETING DRAFT (11th Dec, 2014) OUTLOOK FROM THE FUNDAMENTAL DESK: PRECIOUS METALS Gold prices are expected to show profit taking for the day. ECB second Targeted LTRO would be announced today. If the TLTRO amount is higher than the expectation of 150 billion euros, then the gold prices would react negatively which would make the markets feel QE is not imminent in the near future. ECB could continue its “wait and see” approach for a limited time and the euro could stabilize. Prices are under pressure on Gold ETF holding moving down. Silver iShares came down by 90 tonnes at 10642 tonnes while holdings in the SPDR Gold Trust, the biggest gold-backed ETP, rose by 3 tons to 724.21 metric tons, the least since December 2008. BASE METALS Base metals would trade positively during the day after China inflations raised deflation fears in the economy with lower oil prices and property prices. Larger declines in PPI would evoke expectations of further rate cuts and RRR cuts. There are expectation that growth target to slow from 7.5% in 2014 to 7% in 2015. ECB second TLTRO announcement today and China industrial production data would be released tomorrow. ENERGY Crude oil prices witnessed selling pressure after Kuwait, Saudi and Iraq reduces their Asia crude export prices for the month of January, the kingdom is maintaining pressure on non-OPEC producers to cut production OPEc trimmed its demand growth for the next year and said oil market would remain in 1.83 mbpd surplus in H1 2015.
Posted on: Thu, 11 Dec 2014 09:08:11 +0000
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