Gold Futures Surged By Over 1 % in the Domestic Market

Bullions Tips - Gold futures surged by over 1 per cent in the domestic market on Friday as a sharp depreciation of the Indian rupee, which tumbled to a two-year low against the greenback, magnified the gains in the yellow metal, which advanced modestly in the overseas market.

 

A weaker rupee against the US dollar pushed up prices of the bullion in the domestic market.  Gold ended modestly higher in the overseas market as a weaker dollar and plunging equities bolstered the appeal of the bullion as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus bolstering demand.
 

The gains in the bullion were curbed by fears that plummeting oil prices which hit a fresh seven-year low may reignite the risk of deflation, denting the appeal of Gold, a hedge against inflation.
 

Upbeat US economic data amidst a rebound in US wholesale inflation and a pickup in retail sales bolstered the case for the US Fed to raise interest rates for the first time since 2006, this week, dimming the lure for the bullion as a store of value, trimming gains in Gold futures in the overseas market.
 

While US retail sales climbed by 0.2 per cent in November 2015, the most in four months, producer prices increased the most since June, up by 0.3 per cent in November 2015 from October when they fell 0.4 per cent.
 

Gold may succumb to fresh losses today as traders remain anxious ahead of the two-day Fed meet that begins tomorrow.
 

At the MCX, Gold futures for February 2016 contract closed at Rs 25,679 per 10 gram, up by 1.03 per cent after opening at Rs 25,357, against the previous closing price of Rs 25,418. It touched the intra-day high of Rs 25,714.

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Gold Pares Gains As focus Back on US rate Hike Expectation

 

Gold pared gains on Monday, after an initial flow of safe-haven buying following the attacks in Paris slowed down and investors' focus returned to expectations for the US Federal Reserve to raise interest rates in December.

Spot gold rose as much as 1.4 per cent to a 10-day high of $1,097.90 an ounce, and was up just 0.1 per cent at $1,083.76 at 2:01 p.m. EST (1901 GMT), hovering above last week's six-year low at $1,074.26.

US gold futures for December delivery settled up 0.3 per cent at $1,083.60 an ounce.

Gold opened higher early this morning on the back of what happened over the weekend on perceived geopolitical risk, but it seems to be already short-lived because the bigger macroeconomic issues are the dollar's strength and the (expected) US rate hike,

Gold is typically seen as a safe investment during times of uncertainty. However, there has not been an increase in demand from retail investors since the Paris attacks, German coin dealer Degussa said in an emailed statement.

The Dollar rose against major currencies and US and European equity markets gained modestly, as markets grew more convinced the Fed will raise interest rates next month and investor worries faded over Friday night's attacks in Paris.

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Gold futures Ended Lower in the Domestic Market

Gold futures ended lower in the domestic market on Monday tracking a bearish trend in the overseas market led by profit-booking by investors and speculators in the precious metal following a recent rally amidst speculation that the US Federal Reserve may push back the timeline for a maiden interest rate hike in almost a decade due to global headwinds which threaten to crimp growth in the world’s biggest economy, bolstering the lure for Gold as a store of value.
 

Stronger dollar also curbed the appeal of Gold as an alternative asset. Stronger greenback makes the bullion more expensive for those holding other currencies, thus dimming demand.
 

However, the losses in the bullion were trimmed by speculation that China may up stimulus after growth slipped to the weakest since the global financial crisis in Q3 2015, bolstering the outlook for the bullion, which is a hedge against the inflationary risk of monetary stimulus.


Gold may trade on a cautious note today ahead of US housing data and Fed Chair Janet Yellen’s speech in which she may offer some cues over the timing of a US rate hike.


At the MCX, Gold futures for December 2015 contract closed at Rs 27,006 per 10 gram, down by 0.53 per cent after opening at Rs 27,111, against the previous closing price of Rs 27,150. It touched the intra-day low of Rs 26,922.   

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MCX Commodity Updates ~ Gold, Silver, Copper, Crude Oil Tips Today 05 April 2013

Gold fell for a fourth day on Friday, holding near its lowest point since May last year, as investors await U.S. jobs data for more clues on the health of the world's largest economy.

Strong employment data could prompt the U.S. Federal Reserve to end its bullion-friendly bond-buying programme earlier than expected and dent gold's safe haven appeal as worries 

about inflation ebb. A drop in bullion holdings in major gold exchange traded funds to their lowest level since August 2012 has also dragged on prices.

Gold eased $1.55 an ounce to $1,551.16 by 0314 GMT, heading for a second week of decline. It fell to a 10-month low at 1,539.74 on Thursday as it failed to react to the shock of the Bank of Japan's unprecedented monetary stimulus and hopes for another European Central Bank rate cut. China being absent from the physical market this week for a Thursday and Friday holiday has added to the overall weakness in metals, Lan also noted.

Bullion has slipped around 4 percent since hitting a hitting a 1-month high in March as investors dumped the precious metal in favour of more risky assets. U.S. gold for June delivery was at $1,551.20 an ounce, down $1.20. The U.S. nonfarm payrolls data due at 1230 GMT will likely show employers added 200,000 jobs last month after hiring 236,000 workers in February. 

Oil was up in Asia today as cautious traders waited for the release of US jobs data for March. New York's main contract, West Texas Intermediate light sweet crude for delivery in May, added 18 cents to USD 93.44 a barrel and Brent North Sea crude for May increased 16 cents to USD 106.50 in mid-morning trade.

Oil prices had fallen in New York yesterday in the wake of unexpectedly high US jobless claims and concerns about a supply glut in the world's largest economy and energy consumer. 

The US Labor Department will release its jobs and unemployment report later Friday. Most analysts have pencilled in US jobs growth of 192,000 in March, down from a February spike of 236,000.

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MCX Commodity Market Updates Today 04 April 2013

Silver prices fell by 1.10 per cent to Rs 51,984 per kg in futures trade today as speculators trimmed their positions largely in tune with a weakening trend overseas after a stronger dollar reduced demand for safe haven. At the Multi Commodity Exchange, Silver for delivery in far-month July traded lower by Rs 577, or 1.10 per cent, to Rs 51,984 per kg in business turnover of 190 lots. Similarly, the white metal for delivery in May declined by Rs 553, or 1.07 per cent, to Rs 50,920 per kg in business volume of 2,844 lots.

Taking cues from global markets and subdued demand from domestic consuming industries, lead prices eased by 0.31 per cent to Rs 112.50 per kg in futures trade today as speculators reduced their exposures. At the Multi Commodity Exchange, lead for delivery in May fell 35 paise, or 0.31 per cent, to Rs 112.50 per kg in business turnover of 91 lots. On similar lines, the metal for delivery in April shed 30 paise, or 0.27 per cent, to Rs 111.85 per kg in 1,862 lots. 

Amid a weak trend in the global markets and subdued domestic demand, nickel prices dropped 0.67 per cent to Rs 889.90 per kg in futures trade today as speculators reduced their positions. At the Multi Commodity Exchange, nickel for delivery in April dropped by Rs 4, or 0.67 per cent, to Rs 889.90 per kg in a business turnover of 716 lots. The metal for delivery in May also fell by Rs 6.10, or 0.67 per cent, to Rs 898.20 per kg in a turnover of 102 lots.

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MCX Commodity Tips and Updates Today

Precious metals prices are trading a tad higher on COMEX today. We expect a further rise in the prices of precious metals on account of weak economic data from the US which raises hopes of the continuation of the existing loose monetary policy of the Federal Reserve. Buying at dips is recommended for the day.

Industrial metals prices are trading lower on international bourses today. We expect a further decline in the prices of industrial metals on account of a weaker than expected manufacturing data from US and China. Selling on rise is recommended for the day.

Crude oil prices are trading lower on NYMEX today. We expect a further decline in the prices of oil on account of an expectation of higher stocks at major ports. Selling on rise is recommended for the day.

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MCX Commodity Updates ~ Gold, Silver, Copper, Crude Oil Tips Today 02 April 2013

Gold prices recovered by Rs 130 to Rs 30,200 per ten grams in the national capital today on fresh buying by stockists. However, silver held steady at Rs 53,500 per kg on lack of buying support from industrial units and coin makers. On the domestic front, gold of 99.9 and 99.5 per cent purity recovered by Rs 130 each to Rs 30,200 and Rs 30,000 per ten grams, respectively, while sovereign held steady at Rs 25,250 per piece of eight gram. On the other hand, silver ready held steady at Rs 53,500 per kg while weekly-based delivery lost Rs 150 at Rs 53,750 per kg on lack of speculators buying support.

Base metal prices fell up to Rs 5 per kg on the local non-ferrous metals market today on stockists selling in tandem with a weak Asian trend. Meanwhile, copper for delivery in July fell 2 per cent to close at USD 8,656 a tonne, the lowest level since July 25 on the Shanghai Futures Exchange. In the national capital, copper and nickel (4x4) fell Rs 5 each to Rs 432 and Rs 1,052-1,055 per kg, respectively. Zinc ingot, lead ingot and lead imported were also traded lower by Rs 2 each to Rs 123-129, Rs 142 and Rs 140 per kg, respectively.

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MCX Commodity Market Report Today 01 April 2013

Bullion: Gold futures were down on local bourses tracking the COMEX contracts which came under pressure after investors booked profits ahead of the long Easter weekend. Marginal gains in the rupee against the dollar also put pressure on local gold prices.

Metals: Base metals futures on MCX were trading lower tracking benchmark contracts on the London Metal Exchange, where prices declined on Eurozone economic concerns and profit booking ahead of the long weekend. Appreciation 

in rupee against the dollar also weighed on MCX base metal futures. A firm rupee makes import of dollar-denominated commodities cheaper.

Energy: Domestic crude oil futures were trading slightly higher due to bargain buying, but the upside was capped following a fall in benchmark contracts on the New York Mercantile Exchange and firm rupee against the dollar. NYMEX, crude oil futures declined today on Eurozone economic concerns and following a sharp rise in the US crude oil stocks.

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Weekly MCX Commodity Market Updates & Tips

Gold (April): Gold is expected to move in the range of 29000-29800 during the week ahead.

Silver (May): Silver is expected to move in the range of 51000-54500 during the week ahead. 

Crude Oil (Apr.): Crude is expected to move in the range of Rs 5300-5500 during the week ahead. 

Natural Gas (Apr): Natural Gas is expected to move in the range of 215-228 during the week ahead.

Copper (April): Copper is expected to move in the range of 400-420 during the week ahead.

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MCX Bullions tips, Copper news and Crude Updates Today

Today MCX Commodity Market trading at negative prices, totally opposite from yesterday. Yesterday MCX Silver touched the maximum price of Rs. 57,000 but today it trading at lower prices. MCX Gold, Copper, Crude all are trading at lower prices today. Today MCX Gold is trading near at Rs. 28,600 and MCX Silver is trading at Rs. 55,400. MCX Copper and Crude are also trading at lower prices as compare to yesterday.

Precious metals (Bullions: MCX Gold and Silver) are trading lower OR negative prices today. All base metals are trading mixed on International bourses today. We expect prices to trade lower for the day. MCX Crude oil is trading lower today. We expect prices to trade lower for the day.

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