Precious Metals
D A I L Y B U Z Z
GOLD
Gold futures closed higher in the domestic market on Friday as the sharp depreciation of the Indian rupee against the US dollar exerted upward pressure on prices of the bullion in the domestic market; more than offsetting the flat closing in the overseas market. The yellow metal closed little changed in the overseas market on Friday as investors and speculators shied away from booking fresh positions in the bullion as a 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. Caution ahead of the US Federal Reserve’s policy meet this week where the Fed may drop the word “patient” over monetary tightening, and probably signal a rate hike towards the middle of the year also curbed the demand for the bullion as a store of value. Meanwhile, US wholesale prices fell for a fourth straight month, down 0.5 per cent in February, dimming the bullion’s appeal as a hedge against inflation. Gold may fall today asinvestors stick to a cautious stance ahead of the FOMC meet this week. At the MCX, Gold futures for April 2015 contract closed at Rs 25,890 per 10 gram, up by 0.92 per cent after opening at Rs 25,720, against the previous closing price of Rs 25,655. It touched the intra-day high of Rs 25,918 till the closing.
Energy
D A I L Y B U Z Z
CRUDEOIL
Crude oil prices fell by 2.55 per cent on Monday at the domestic markets as supply worries weighed on sentiment following the release of a mostly bearish report from the International Energy Agency on global oil supply and demand. The IEA warned that an oil-price recovery remained fragile amid a production rebound in the US In the week ahead, market players will focus on the conclusion of the Federal Reserve's two-day monetary policy meeting on Wednesday, which could provide indications on how soon it might raise interest rates. At the MCX, crude oil futures for March 2015 contract were trading at Rs. 2,793 per barrel, down by 2.55 per cent, after opening at Rs. 2,852 against the previous closing price of Rs. 2,866. It touched the intra-day low of Rs. 2,787 till the trading. (At 11.40 AM).
