Saturday, November 29, 2014

DAILY COMMODITY REPORT FOR 1 DEC 2014

Precious Metals
D A I L Y B U Z Z
GOLD
Gold futures slid in the domestic market on Friday as investors and speculators exited positions in the precious metal tracking a weak trend in the overseas market as a plunge in global oil prices, which have tumbled to the lowest level in four years signal slowing inflation in the world economy, denting the yellow metal’s appeal as a hedge against inflation. Crude oil prices plunged deeper into bear terrain after the OPEC decided against reducing production in a bid to maintain market share amid surging US output. Stronger dollar curbed the demand for gold as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand. Gold futures for December 2014 contract, at MCX, is trading at Rs. 26,118 per 10 grams, down by 0.49 per cent, after opening at Rs. 26,155, against the previous closing price of Rs 26,247. It touched an intra-day low of Rs 26,085. (At 11:07 AM).

Base Metals & Energy
D A I L Y B U Z Z
COPPER
Copper futures were trading lower in the domestic market on Friday as investors and speculators exited positions in the industrial metal tracking a weak trend in the overseas market as a strike at the Antamina copper mine in Peru ended after three-weeks, dimming concerns over tighter global copper supplies. BHP Billiton and Glencore’s copper and zinc mine in Peru will resume operations next week following the end of a three-week strike. Antamina is the world’s sixth biggest copper mine. At the MCX, copper futures for November 2014 contract is trading at Rs. 400.85 per 1 kg, down by 0.69 per cent, after opening at Rs. 402.50, against the previous closing price of Rs. 403.65. It touched an intra-day low of Rs. 400.25. (At 11:12 AM).

CRUDE OIL
Crude oil futures tumbled deeper into the bear terrain on Friday as investors restored to further selling in the energy commodity, after the OPEC, which refrained from a much needed production cut to relieve a supply glut, braced for a price war with US shale producers. OPEC will maintain its collective output target at 30 million barrels a day, Saudi Arabia’s Oil Minister Ali-Al-Naimi said. Goldman Sachs predicted that OPEC’s verdict of not cutting output will lead to a further decline in global oil prices. At the MCX, Crude Oil futures, for the December 2014 contract, is trading at Rs 4,268 per barrel, down by 0.54 per cent, after opening at Rs 4,250, against a previous close of Rs 4,291. It touched an intra-day low of Rs 4,247. (At 11:03 AM)

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