Precious Metals
D A I L Y B U Z Z
GOLD
Gold futures fell in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal as a weaker dollar boosted the demand for the yellow metal as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus bolstering demand. Fed Chair Janet Yellen ruled out an interest rate hike in the immediate term as there is little evidence of a pickup in inflation to the 2 per cent target while an improvement in the labour market hasn’t yet lifted wage growth, boosting the case for continued easy money policy, bolstering the appeal of the bullion as a store of value. She stressed that a change in the Fed’s guidance on interest rates will not necessarily be a sign of imminent tightening. At the MCX, Gold futures for April 2015 contract is trading at Rs 26,289 per 10 gram, up by 0.88 per cent after opening at Rs 26,079, against the previous closing price of Rs 26,059. It touched the intra-day high of Rs 26,301 till the closing. (At 11:47 AM).
Base Metals
D A I L Y B U Z Z
COPPER
Copper futures surged in the domestic market on Tuesday as investors and speculators booked fresh positions in the industrial metal amid signs of tighter global supply after BHP Billiton Ltd., the world’s biggest mining company unveiled plans to cut project spending to the lowest level since 2010, following a similar announcement by Rio Tinto Group, Glencore Plc and Freeport-McMoran Inc. Citigroup expects an increase in mined copper supplies to slow to 1.3 per cent in 2015 from 2 per cent last year. Copper stockpiles tracked by the London Metal Exchange (LME) fell 1.4 per cent to 295,500 tons, the biggest fall since May 28, 2014. A weaker dollar boosted the demand for the metal as an alternative asset. Weaker greenback makes copper cheaper for those holding other currencies, thus dimming demand. Copper may extend gains today as a rebound in Chinese manufacturing lifts demand outlook. At the MCX, Copper futures for February 2015 contract closed at Rs 362.40 per 1 kg, up by 1.83 per cent after opening at Rs 354.45, against the previous closing price of Rs 355.90. It touched the intra-day high of Rs 366.85 till the closing.
