PRECIOUS METALS & BASE METALS REPORT FOR 19 MAY 2015

Gold: Gold’s gains came amidst a stronger dollar which tends to dampen the lure for the bullion as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus fading desired. Strong physical demand continued to support the bullion as India’s love affair with the precious metal continued into the first quarter, with jewellery demand rising 22 per cent to 151 tonnes, a report by the World Gold Council said, bolstering sentiment. Gold may increase a rally today on hopes of a delayed US interest rate hike. At the MCX, Gold futures for June 2015 contract closed at Rs 27,617 per 10 gram, up by 0.56 per cent after opening at Rs 27,519, against the last closing price of Rs 27,463. It touched the intra-day maximum of Rs 27,685 till the closing.

Zinc: Zinc futures logged slim gains in the domestic market on Monday after an easing property price decline in China, the world’s biggest metals consumer, raised hopes that the country’s economic slowdown may be bottoming-out, with better days ahead for metal demand. New home prices fell in 47 out of the 70 Chinese cities tracked by a government survey, in April, compared to 49 in March, month on month, government data showed on Monday. However subdued physical demand for zinc in the domestic spot market curbed gains in the industrial metal. At the MCX, Zinc futures for May 2015 contract closed at Rs 145.65 per 1 kg, up by 0.07 per cent after opening at Rs 145.75, against the last ending price of Rs 145.55. It touched the intra-day maximum of Rs 147 till the closing.

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TODAY BASE METAL & ENERGY REPORT 15 MAY 2015

Base Metals & Energy

CRUDE OIL

Fears of a global supply glut returned to spook oil traders on Thursday, with crude futures plunging more than 7 per cent in the domestic market after a warning from the International Energy Agency (IEA) over accelerating OPEC supplies and an increase in Non-OPEC production, countering falling US production as a shale oil boom peaks. The Paris-based agency said that supply from OPEC producers, which together account for 40 per cent of the global oil market, surged by 160,000 barrels per day to the highest level since September 2012 at 31.21 million barrels per day in April 2015.

The IEA also raised its estimates for Non-OPEC oil production growth in 2015 by 200,000 barrels per day, on higher production from countries such as Russia, China, Colombia, Vietnam and Malaysia. Non-OPEC producers may pump 57.8 million barrels of oil per day this year, up by 830,000 barrels per day from 2014. The IEA also warned that the battle for global oil market share between the OPEC and Non-OPEC producers has just begun, meaning a global supply glut is only going to get bigger, triggering panic among oil investors and traders. Investors brushed aside data showing a drop in the number of Americans seeking unemployment benefits that signaled an improving labour market in the world’s biggest economy. Jobless claims edged lower by 1,000 to 264,000 last week while the four-week average slid to the lowest level since 2000.

Oil may rebound today as the sharp losses in the previous session trigger value buying.

At the MCX, Crude oil futures, for the May 2015 contract, closed at Rs 3,863 per barrel, down by 7.74 per cent, after opening at Rs 3,960, against the previous close price of Rs 3,992. It touched an intradaylow of Rs 3,856 till the closing.

ZINC

Zinc futures declined 0.63 per cent to Rs 149.25 per kg today as participant’s trimmed positions on weak cues from the global markets amid subdued demand in domestic spot markets. Zinc futures for May 2015 contract, at MCX, were trading at Rs 149.25 per kg, down by 0.63 per cent after opening at Rs. 149.85 against the previous closing price of Rs. 150.20. It touched the intra-day low of Rs. 148.75 till the trading. (At 4.00 PM today). However, losses were curbed due to the decline in the zinc stockpiles at the London Metal Exchange (LME) on account of the strong demand for the commodity. LME zinc stocks fell by 3875 metric tonnes to 446025 metric tonnes as on May 14, 2015. Major refined zinc exporting countries are Canada, Australia and Rep. of Korea, while major refined zinc importing countries are China, USA and Germany.

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TODAY BASE METAL & ENERGY REPORT 2 APRIL 2015

Base Metals & Energy

ZINC

Zinc prices rose by 1.10 per cent on Wednesday at the domestic markets after France’s manufacturing PMI rose unexpectedly last month, data showed on Wednesday signaling improving sentiment in the region which raised the demand outlook for the metal. In a report, Markit Economics said that French manufacturing PMI rose to a seasonally adjusted 48.8, from 48.2 in the preceding month.Zinc futures for April 2015 contract, at MCX, were trading at Rs 115.15 per kg, up by 1.10 per cent after opening at Rs. 114.05 against the previous closing price of Rs. 113.90. It touched the intra-day high of Rs. 115.70 till the trading. (At 3.45 PM).

NATURAL GAS

Natural Gas futures closed higher in the domestic market on Tuesday as investors and speculators booked fresh positions in the energy commodity as forecasts for cooler weather in parts of the US lifted the demand outlook for the heating fuel. Latest weather forecasting models called for colder temperatures in the US East Coast and the Midwest from April 4 to April 6, 2015. At the MCX, Natural Gas futures for April 2015 contract closed at Rs 167 per 1 kg, up by 0.18 per cent after opening at Rs 166.6, against the previous closing price of Rs 166.7. It touched the intra-day high of Rs 169.3 till the closing.

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REPORT FOR MCX COMMODITY 1 APRIL 2015

Precious Metals

GOLD

Gold futures fell in the domestic market on Tuesday as investors and speculators exited positions in the precious metal tracking a bearish trend in the overseas market as a stronger dollar curbed the demand for the bullion as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.Investors are bracing for a maiden US interest rate hike since 2006 as Fed Chair Janet Yellen last week saw monetary tightening beginning later this year, dimming the appeal of gold as a store of value.At the MCX, Gold futures for April 2015 contract is trading at Rs 26,186 per 10 gram, down by 0.32 per cent after opening at Rs 26,208, against the previous closing price of Rs 26,270. It touched the intra-day low of Rs 26,160. (At 12:27 PM).

Energy

NATURAL GAS

Natural Gas futures closed little changed in the domestic market on Monday as investors and speculators stayed cautious over booking fresh positions in the energy commodity amid speculation that the onset of spring weather in the US may bring warmer temperatures to the world’s biggest economy, curbing demand for the heating fuel. Latest weather forecasting models called for near-normal temperatures across the 48 US states over the next two weeks. At the MCX, Natural Gas futures for April 2015 contract closed at Rs 166.7 per 1 kg, up by 0.06 per cent after opening at Rs 167.50, against the previous closing price of Rs 166.6. It touched the intra-day high of Rs 168.5 till the closing.

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DAILY COMMODITY REPORT FOR 31 MARCH 2015

Precious Metals

GOLD

Gold futures closed lower 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 easing geopolitical concerns regarding Yemen curbed the demand for the bullion as an alternative asset. Fed Chair Janet Yellen said that she expects the FOMC to begin monetary tightening this year, with subsequent rate lift-offs to be gradual rather than following a predictable path, dimming the appeal of the bullion as a store of value. However, a weaker dollar boosted the demand for gold as an alternative asset, supporting the yellow metal. Weaker greenback makes gold cheaper for those holding other currencies, thus bolstering demand. Gold may extend a decline today as caution persists ahead of US consumer spending data. At the MCX, Gold futures for April 2015 contract closed at Rs 26,569 per 10 gram, down by 0.87 per cent after opening at Rs 26,675, against the previous closing price of Rs 26,801. It touched the intra-day low of Rs 26,387 till the closing.

Base Metals

ZINC

Zinc prices fell by 0.12 per cent on Monday at the domestic markets after Industrial production in Japan fell more-than-expected last month signaling weak sentiment in the region which reduced the demand outlook for the metal. In a report, the Ministry of Economy, Trade and Industry said that industrial production fell to a seasonally adjusted -3.4 per cent, from 3.7 per cent in the preceding month. Zinc futures for March 2015 contract, at MCX, were trading at Rs 130.05 per kg, down by 0.12 per cent after opening at Rs. 129.90 against the previous closing price of Rs. 130.20. It touched the intra-day low of Rs. 129.40 till the trading. (At 3.35 PM).

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WEEKLY COMMODITY REPORT 30 MARCH 2015

Precious Metals

GOLD

Gold prices fell by 0.38 per cent to Rs 26,948 per 10 grams in futures trade today as speculators locked-in gains amid weak global trends.At the Multi Commodity Exchange, the June contracts of gold fell by Rs 102, or 0.38 per cent, to Rs 26,948 per 10 grams in a business turnover of 115 lots.The April contracts shed Rs 96, or 0.36 per cent, to Rs 26,705 per 10 grams in 436 lots. The April contracts shed Rs 96, or 0.36 per cent, to Rs 26,705 per 10 grams in 436 lots. Analysts attributed the fall in gold futures to profit-booking by speculators at prevailing levels and weak global trends.Meanwhile, gold prices fell by 0.4 per cent to $1,200.10 an ounce in Singapore today.

SILVER

Silver prices fell sharply by Rs 197 to Rs 38,900 per kg in futures trade today due to profit-booking at existing levels and weak trend overseas.At the Multi Commodity Exchange, silver for delivery in July traded lower by Rs 197, or 0.50 per cent, to Rs 38,900 per kg in a business turnover of just three lots.Also, the white metal for delivery in May declined by Rs 171, or 0.44 per cent, to Rs 38,442 per kg in a business volume of 478 lots. In international market, silver prices fell by 0.4 per cent to $17.05 an ounce in Singapore.Market analysts said apart from the profit-booking by participants, a weak trend in global markets led to the fall in silver prices at futures trade here.

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DAILY PRECIOUS METALS REPORT 26 MARCH 2015

Precious Metals

D A I L Y B U Z Z

GOLD

Gold futures were trading lower in the domestic market on Wednesday after better than expected US inflation data upped bets of US monetary tightening, dimming the appeal of the bullion as a store of value. US consumer prices rose for the first time in four months, up 0.2 per cent in February 2015 from the previous month, raising bets that inflation may gradually move towards the Fed’s 2 per cent target, boosting the case for an interest rate hike in the coming months. At the MCX, Gold futures for April 2015 contract is trading at Rs 26,270 per 10 gram, down by 0.31 per cent after opening at Rs 26,280, against the previous closing price of Rs 26,351. It touched the intra-day low of Rs 26,212. (At 12:09 PM).

SILVER

Silver futures fell in the domestic market on Wednesday as investors and speculators exited positions in the precious metal amid caution after US core inflation data for February beat estimates, raising bets of US monetary tightening, dimming the appeal of the bullion as a store of value. Meanwhile, core consumer prices which strip out the effect of food and energy climbed 0.2 per cent in February, topping expectations of a 0.1 per cent rise while overall consumer prices rose for the first time in four months, up 0.2 per cent in February 2015 from the previous month, raising bets that inflation may gradually move towards the Fed’s 2 per cent target, boosting the case for an interest rate hike in the coming months. At the MCX, Silver futures for May 2015 contract is trading at Rs 37,941 per 1 kg, down by 0.13 per cent after opening at Rs 37870, against the previous closing price of Rs 37991. It touched the intra-day low of Rs 37,750 till the closing. (At 15:14 PM).

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REPORT ON GOLD, SILVER & NATURAL GAS 25 MARCH 2015

Precious Metals

Precious Metals

D A I L Y B U Z Z

GOLD

Gold futures were trading with slim losses in the domestic market on Tuesday as investors weighed the pace of US interest rate increases while a rebound in the dollar curbed the demand for the bullion as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.Federal Reserve Bank of San Francisco President John Williams saw the case for a hike in rates in mid - summer, curbing the lure for gold as a store of value. At the MCX, Gold futures for April 2015 contract is trading at Rs 26,177 per 10 gram, down by 0.08 per cent after opening at Rs 26,169, against the previous closing price of Rs 26,198. It touched the intra - day low of Rs 26,135 till the closing. (At 11:38 AM).

SILVER

Silver futures were trading little changed in the domestic market on Tuesday as investors and speculators were cautious over booking fresh positions in the precious metal ahead of key US economic data to be released today including February consumer prices, March manufacturing PM I, new home sales for February and Fed’s Bullard speech, which may offer some cues over the timing for the world’s top central bank to raise interest rates for the first time since 2006. At the MCX, Silver futures for May 2015 contract is trading at Rs 37,800 per 1 kg, up by 0.05 percent after opening at Rs 37751, against the previous closing price of Rs 37781. It touched the intra - day high of Rs 37842 till the closing. (At 11:51 AM).

Energy

NATURAL GAS

Natural Gas futures plummeted in the domestic and overseas market on Monday as forecasts for mild spring weather threatened to curb the demand for the heating fuel. The Commodity Weather Group expects mostly average temperatures in the contiguous US from April 2 to April 6. At the MCX, Natural Gas futures for March 2015 contract closed at

Rs 170.40 per 1 kg, down by 2.46 per cent after opening at Rs 173.50, against the previous closing price of Rs 174.70. It touched the intra - day low of Rs 167.90 till the closing.

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REPORT ON MCX GOLD & SILVER FOR 24 MARCH 2015

Precious Metals

D A I L Y B U Z Z

GOLD
Gold prices fell by 0.25 per cent to Rs 26,200 per 10 grams in futures trade today amidst a weak trend overseas and profit-booking by speculators.

At the Multi Commodity Exchange, gold for delivery in June eased by Rs 65, or 0.25 per cent, toRs 26,200 per
10 grams in a business turnover of 24 lots.

Likewise, the metal for delivery in April shed Rs 62, or 0.24 per cent, to Rs 26,120 per 10 gramsin 606 lots.

Globally, gold traded lower at USD 1,182.30 an ounce in Singapore today.

SILVER
Silver prices fellsharply by Rs 318 to Rs 37,471 per kg in futures trade today as speculators reduced their positions amidst a weak global trend.

At the Multi Commodity Exchange, silver for delivery in May moved down by Rs 318, or 0.84per cent, to Rs 37,471 per kg in a business turnover of 1,317 lots.

Also, the white metal for delivery in July fell by Rs 312, or 0.82 per cent, to Rs 37,927 per kg in 76 lots. 

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DAILY COMMODITY REPORT FOR 23 MARCH 2015

Precious Metals

GOLD

Gold futures rose in the domestic and overseas market on Thursday as investors continued to ponder Federal Reserve tea leaves on the prospects of a rate hike by June. Prices rose after somewhat dovish comments from Federal Reserve chair Janet Yellen regarding a potential interest rate hike helped the precious metal rebound from an extended slump. Further, weaker dollar boosted the demand for gold as an alternative asset, trimming losses in the bullion.Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand. Gold may trade on a higher note today after the US Fed policy meet. At the MCX, Gold futures for April 2015 contract closed at Rs 25,962 per 10 gram, up by 1.28 per cent after opening at Rs 25,740, against the previous closing price of Rs 25,637. It touched the intra-day high of Rs 25,997 till the closing.

Energy

CRUDEOIL

Crude oil prices rose by 0.38 per cent on Friday at the domestic markets as the dollar weakened, but gains were limited by supply concerns after Kuwait said OPEC had no choice but to main tain output levels. A weaker dollar typically supports prices for commodities denominated in the greenback, making them cheaper for holders of other currencies. Gains were also limited after Iraq's southern oil exports have risen in March as poor weather that delayed cargoes in February cleared, putting OPEC's second-largest producer back within sight of record shipments. At the MCX, crude oil futures for February 2015 contract were trading at Rs. 2,873 per barrel, up by 0.38 per cent, after opening at Rs.2,885 against the previous closing price of Rs. 2,862. It touched the intra - day high of Rs. 2,887 till the trading. (At 11.45 AM).

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PRECIOUS METALS & BASE METALS REPORT 20 MARCH 2015

GOLD

Gold futures rose in the domestic and overseas market on Wednesday as the US dollar weakened following comments from Federal Reserve chair Janet Yellen. While Ms. Yellen indicated that its benchmark Federal Funds Rate could be increased later this year, she emphasized that it will not occur until after the Federal Open Market Committee’s next meeting in April, at the earliest. Yellen added that the timing of the decision will be “data dependent,” and that a rate hike will not necessarily be made in June. A weaker dollar boosted the demand for gold as an alternative asset, trimming losses in the bullion. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand. Gold may trade on a higher note today after the US Fed policy meet. At the MCX, Gold futures for April 2015 contract closed at Rs 25,637 per 10 gram, up by 0.08 per cent after opening at Rs 25,631, against the previous closing price of Rs 25,617. It touched the intra-day high of Rs 25,697 till the closing.

COPPER

Copper prices rose by 2.40 per cent on Thursday at the domestic markets after the Federal Reserve projected a slower pace of rate hikes. The Fed downgraded its forecasts for growth and inflation and lowered its interest rate projections. The Fed dropped a reference to being "patient" on the timing of rate hikes, but added that the change in its forward guidance did not mean it has decided on the timing for an initial rate increase. At the MCX, copper futures for April 2015 contract were trading at Rs. 366.90 per 1 kg, up by 2.40 per cent, after opening at Rs. 360.20 against the previous closing price of Rs. 358.30. It touched the intra-day high of Rs. 367.70 till the trading. (At 4.05 PM).

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DAILY COMMODITY GOLD & ZINC REPORT FOR 19 MARCH 2015

Precious Metals

D A I L Y B U Z Z

GOLD

Gold prices fell by 0.21 per cent on Wednesday at the domestic markets as investors unloaded their holdings of the precious metal in advance of today’s critical Federal Open Market Committee meeting.The Federal Reserve could remove a reference to remaining patient from its minutes, which would provide an indication that the U.S. central bank is ready to raise interest rates at some point this year. However, weak dollar raised the appeal of the bullion as an alternative asset. Weaker dollar makes the precious metal cheaper for those holding other currencies, thus increasing demand.Gold futures for April 2015 contract, at MCX, were trading at Rs. 25,562 per 10 grams, down by 0.21 per cent after opening at Rs. 25,631 against the previous closing price of Rs. 25,617. It touched the intra-low low of Rs. 25,541 till the trading. (At 11.50 AM).

Base Metals

D A I L Y B U Z Z

ZINC

Zinc prices fell by 0.43 per cent on Wednesday at the domestic markets as speculators trimmed positions. Also, low demand at domestic spot markets influenced the sentiment. However, losses were limited due to the decline in the zinc stockpiles at the London Metal Exchange (LME) on account of the strong demand for the commodity. LME zinc stocks fell by 3050 metric tonnes to 530600 metric tonnes as on March 18, 2015. Zinc futures for March 2015 contract, at MCX, were trading at Rs 126.15 per kg, down by 0.43 per cent after opening at Rs. 126.35 against the previous closing price of Rs. 126.70. It touched the intra-day low of Rs. 125.50 till the trading. (At 4.00 PM).

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DAILY MCX GOLD REPORT FOR 17 MARCH 2015

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).

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DAILY MCX COMMODITY REPORT FOR 16/MARCH/2015

Precious Metals

D A I L Y B U Z Z

GOLD/SILVER

Gold prices rose by Rs 131 to Rs 25,950 per 10 grams in futures trade today as speculators created fresh positions after the precious metal recovered in the global markets. At the Multi Commodity Exchange, gold for delivery in June was up by Rs 131, or 0.51 per cent, to Rs 25,950 per 10 grams in a business turnover of 31 lots. The metal for delivery in April moved up by Rs 114, or 0.44 per cent, to Rs 25,769 per 10 grams in a turnover of 774 lots. Analysts said recovery in the precious metal in global markets mainly helped gold to trade higher at futures trade here. Globally, gold rose as much as 0.7 per cent to USD 1,161.855 an ounce in Singapore. After its three session slide, gold prices recovered slightly at the bullion market here on modest offtake from stockist and investors as well as low level jewellery buying interest on the back of improved international markets. Silver also gained following mild speculative buying. Standard gold (99.5 purity) rose by Rs 95 to end at Rs 25,900 per 10 grams from Thursday's closing level of Rs 25,805. Pure gold (99.9 purity) also went up by a similar margin to conclude at Rs 26,050 per 10 grams from Rs 25,955. Silver (.999 fineness) moved up by Rs 85 per kg to close at Rs 36,205 as compared to Rs 36,120 yesterday. Globally, in Europe gold firmed up after nine straight sessions of losses, as the dollar nursed losses following its biggest one-day fall in a month late yesterday. In London, spot gold edged up 0.3 per cent to $1,156.20 an ounce in early trade. while spot silver were down 0.3 per cent at $15.52 an ounce.

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Budget 2015: Commodity market gets a reprieve with FMC-SEBI merger

                                             BL RESEARCH BUREAU:  

The change

The ₹5,600 crore payment crisis that led to the collapse of the country’s single largest commodity spot exchange- National Spot Exchange Limited (NSEL) has seen the government make earnest efforts to bring the regulation of the commodities markets under the Securities Exchange Board of India.

The background

FMC which was earlier under the Consumer Affairs Ministry was brought under the Finance Ministry in September 2013 as the investigations into the NSEL scam began.

Volumes in commodity futures bourse dropped after the NSEL event. In 2013-14, the total commodity futures market turnover was down by 40 per cent. In the nine months so far this fiscal, the situation is not any better. Though the new commodities transaction tax and the correction in global commodities market are partly responsible for this, the impact of NSEL’s fallout can’t be overlooked. Samir Shah, MD and CEO of NCDEX, told Business Line, “One incident like NSEL is a big blow on the market and market gets shattered, NSEL impacted NCDEX more than MCX, because it happened in the agri sector.” The blind spots in commodities market regulation came to light only after the NSEL scam -non-existence of settlement guarantee fund, no checks to spot short trades, poor margining system, inadequate collateral for trades and no regulator willing to take the onus of regulating the spot commodities market.

The verdict

SEBI’s autonomous functioning and its ability to respond quickly to a crisis should instil confidence in commodity investors. With its powers to attach properties, arrest and detain defaulters in prison, this regulator will be able to protect the interest of small investors better. Also, since SEBI has a sound experience in handling securities derivative market over the many years now and has a larger man-power, it should be able to plug the loop-holes in the system and draw out a stronger regulatory framework for commodity exchanges.

The commodity market participants are also happy and hope that the move will help introduction of new products- such as commodity options and commodity indices and the exchange platform will be also opened to new participants like banks and mutual funds.

All this should however take time. Amendments to the various acts apart, there is also a need for understanding of the way commodities market function. And, the new regulator will have the job of establishing a spot market for commodities in India.

COMMODITY TIPS, MCX TIPS

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DAILY COMMODITY REPORT FOR 02 FEB 2015

Precious Metals

D A I L Y B U Z Z

GOLD

Gold futures posted slight gains in the domestic market on Friday after a downward revision in US fourth quarter economic growth and a retreat in US consumer confidence signaled a slowdown in the world’s biggest economy, boosting the safe haven demand for the bullion while raising speculation that the US Federal Reserve may keep interest rates at low levels for at least in the near-term, bolstering the demand for the yellow metal as a store of value. New York Fed President William Dudley cautioned the US Fed against a premature tightening of monetary policy amid low inflation. The risks of hiking rates "a bit early are higher than the risks of lifting off a bit late”, Dudley said. Gold futures may rise today as speculation of the US Fed delaying a rate hike boosts demand outlook. At the MCX, Gold futures for April 2015 contract closed at Rs 26,227 per 10 gram, up by 0.04 per cent after opening at Rs 26,240, against the previous closing price of Rs 26,216. It touched the intra-day high of Rs 26,335 till the closing.

Base Metals

D A I L Y B U Z Z

LEAD

Lead prices fell by 0.18 per cent to Rs 109.15 per kg in futures trade today as speculators booked profits. Moreover, a weak trend in base metals overseas weighed on lead prices at futures trade. At the Multi Commodity Exchange, lead for delivery in March fell by 20 paise, or 0.18 per cent, to Rs 109.15 per kg in a business turnover of 148 lots. Similarly, the metal for delivery in current month traded lower by 15 paise, or 0.14 per cent, to Rs 107.65 per kg in 126 lots. Similarly, the metal for delivery in current month traded lower by 15 paise, or 0.14 per cent, to Rs 107.65 per kg in 126 lots. Marketmen attributed the fall in lead futures to profit-booking by speculators as well as a weak trend in base metals overseas ahead of manufacturing data from China, the world's biggest consumer.

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DAILY REPORT AND BUDGET SPECIAL ON COMMODITY MARKET

Precious Metals

D A I L Y B U Z Z

GOLD

Gold futures fell in the domestic market on Friday as investors and speculators exited positions in the precious metal as a deepening sell-off in oil threatened to push global inflation even lower, dimming the appeal of the bullion, a hedge against rising consumer prices.However, bets that the US Fed may delay a planned rate hike boosted the appeal of gold as a store of value, curbing losses in gold.A pickup in physical demand for gold from China, the world’s second biggest bullion consumer supported sentiment as China’s net gold imports from Hong Kong rose to 71.6 metric tons in January from 58.8 tons in December.At the MCX, Gold futures for April 2015 contract is trading at Rs 26,178 per 10 gram, down by 0.14 per cent after opening at Rs 26,240, against the previous closing price of Rs 26,216. It touched the intra-day low of Rs 26,151 till the closing. (At 11:48 AM).

Base Metals

D A I L Y B U Z Z

COPPER

Copper futures rose in the domestic market on Friday as a rebound in US durable goods orders last month signaled a pickup in the world’s biggest economy, lifting the demand outlook for the base metal.Bookings for US goods meant to last at least three years rose for the first time in three months, up 2.8 per cent in January from December when they fell a revised 3.7 per cent.Further, speculation that policymakers in China may boost stimulus to stem a slowdown in the world’s biggest copper consumer lifted demand outlook for copper.Chinese Premier Li Keqiang urged the need for a more active fiscal policy, while a central bank publication called for additional monetary easing to boost demand and economic growth.At the MCX, Copper futures for February 2015 contract closed at Rs 369.45 per 1 kg, up by 0.16 per cent after opening at Rs 367, against the previous closing price of Rs 368.85. It touched the intra-day high of Rs 369.95 till the closing. (At 11:53 AM).

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TODAY MCX COMMODITY REPORT FOR 27/02/2015

Precious Metals

D A I L Y B U Z Z

GOLD

Gold futures rose in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal after 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. A pickup in physical demand as markets in China reopened after the week-long Lunar New Year holiday also boosted prices. Gold futures may extend a rally today ahead of the US jobless claims data which may show an uptick in claims last week, signaling a slowing labour market recovery, and boosting the case for a continued easy money policy. At the MCX, Gold futures for April 2015 contract closed at Rs 26,123 per 10 gram, up by 0.25 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 26,319 till the closing.

Energy

D A I L Y B U Z Z

NATURAL GAS

Natural Gas futures plummeted in the domestic market on Wednesday as investors and speculators exited positions in the energy commodity as forecasts called for warmer weather across the US, dimmed the demand outlook for the heating fuel. The central-eastern US is set to see warmer temperatures around March 10, 2015, updated weather forecasting models predicted. Caution ahead of the weekly storage data in the US also weighed on sentiment. At the MCX, Natural Gas futures for February 2015 contract closed at Rs 177.50 per 1 kg, down by 4 per cent after opening at Rs 183.60, against the previous closing price of Rs 184.9 It touched the intra-day low of Rs 176.7 till the closing.

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DAILY COMMODITY REPORT FOR 25 FEB 2015

Precious Metals

D A I L Y B U Z Z

GOLD

Gold futures closed lower in the domestic market on Monday as investors and speculators exited positions in the precious metal as a stronger dollar curbed the demand for the bullion as an alternative asset. Stronger bullion makes gold more expensive for those holding other currencies, thus dimming demand. Further, plunging crude oil prices threatened to exert further downward pressure on global inflation, dimming the appeal of gold, a hedge against rising consumer prices. Gold also fell after Greece struck a provisional deal with Euro group finance ministers to receive a four-month extension on its bailout, curbing safe haven demand. Caution ahead of the testimony of Fed Chair Janet Yellen to a US Congressional Committee on Tuesday where she may offer cues over the Fed’s assessment of the world’s biggest economy and the timing of the maiden US interest rate hike since 2006 also weighed on sentiment. Gold may extend a decline today as investors cautiously await the Yellen speech to the Congress. At the MCX, Gold futures for April 2015 contract closed at Rs 26,153 per 10 gram, down by 0.47 per cent after opening at Rs 26,228, against the previous closing price of Rs 26,277. It touched the intra-day low of Rs 25,955 till the closing.

Energy

D A I L Y B U Z Z

NATURAL GAS

Natural Gas futures ended lower in the domestic market on Monday as investors and speculators booked profits in the energy commodity after prices surged in the previous session when forecasts for a polar blast extending into early March bolstered the demand outlook for the heating fuel. Latest weather forecasting models have called for below normal temperatures in the key US Northeast and Midwest regions through March 6, 2015. At the MCX, Natural Gas futures for February 2015 contract closed at Rs 181.60 per 1 kg, down by 1.3 per cent after opening at Rs 186.3, against the previous closing price of Rs 184. It touched the intra-day low of Rs 180.40 till the closing.

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WEEKLY COMMODITY MARKET ANALYSIS REPORT FOR 23/FEB/2015

Precious Metals

D A I L Y B U Z Z

GOLD/SILVER
Gold prices drifted to hit its lowest levels in 1-1/2 month at the domestic bullion market here due to sluggish demand from jewellery stockists as well as poor local buying sentiment.On the other hand, silver moved up marginally on the back of stray industrial demand. Standard Gold (99.5 purity) declined by Rs 95 to end at Rs 26,625 per 10 grams from Wednesday's closing level of Rs 26,720. Pure gold (99.9 purity) also fell by a similar margin to finish at Rs 26,775 per 10 grams compared to Rs 26,870. However, price of silver (.999 fineness) edged up by Rs 25 to settle at Rs 37,685 per kg as against Rs 37,660 previously. On the global front, the shiny-metal regained some lost ground on safe-haven demand amid continued uncertainty over Greece. Spot gold was bid higher at USD 1,211.45 an ounce in early European trade, while silver inched up to 16.42 an ounce. Gold was little changed on Friday as investors eyed talks over Greek debt, but the metal was headed for its fourth straight weekly dip as a last-minute deal was expected to break the impasse over the Mediterranean country's bailout programme. Gold prices had received some support from Chinese buying ahead of the holiday, when gold is bought for gift- giving. "If this fails to be the case, the complex would likely continue its slide lower."

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