''Gold closes lower as Inflation Data Boosts''

Gold prices ended lower in the domestic market on Friday as optimistic US inflation data bolstered hawkish arguments for an interest rate hike by the Federal Reserve later this year. The US Department of Labor's Bureau of Labor Statistics said its Consumer Price Index (CPI) rose by 0.3 per cent in June on a monthly basis, in line with accord estimates. On a duration-over-year basis, the CPI achieved 0.1 per cent above analysts' forecasts for a flat analyzing. A reading of Core CPI, which layer out food and energy prices, provided even more idealism for the hawks at the Fed in favor of an imminent rate hike. Further, the greenback rose, weakening the demand for the bullion as an alternative asset. A higher dollar makes gold cheaper for those holding other currencies, thus reducing gold demand. At the MCX, Gold futures for o7 / 2015 contract closed at Rs 25,498 per 10 gram, down by 1.06 per cent after starts at Rs 25,733, against the enss closing price of Rs 25,771. It touched the intra-day low of Rs 25,461 till the closing.

Read More on This Buzz - Bullion Tips

Continue reading →

MCX PRECIOUS METALS TIPS, AGRO OUTLOOK 25 FEB 2014

Precious Metals
                                                               D A I L Y B U Z Z
GOLD
Gold rebounded from intraday lows on Monday, adding to last week's gains, as speculators ditched equities on persistent worries over the pace of the US economic recovery and China's growth. Investors on Friday had increased bullish bets on bullion after prices broke through tough resistance at $1,300 an ounce, with weak US manufacturing data and uncertainty over China's economic expansion lifting the metal's safe haven appeal.

Gold hit a low of $1,318.71 an ounce earlier in the session, but stood at $1,327.00 by 0710 GMT,
up $3.99. Last week's rally lifted prices to a 3-1/2 month high at $1,332.10, and gold has gained more than 9 percent so far this year.

"I think $1,335 seems to be capped for the time being," said the chief dealer at Lee Cheong Gold
Dealers in Hong Kong, referring to the next resistance level.

"There are small amounts of buying in the physical side, although selling is also not that much. Premiums haven't changed at all," he said.

Political tensions in Thailand have yet to spur safe-haven buying but could affect trading activity. Prime Minister Yingluck Shinawatra has left Bangkok and is staying 150 km (90 miles) away, her office said on Monday, without specifying the location.

Agro Outlook
                                                               D A I L Y B U Z Z

CHANA
Amid strong domestic demand, chana prices rose 0.63 per cent to Rs 3,013 per quintal in futures trade today as speculators enlarged position.

At the National Commodity and Derivative Exchange, chana for delivery in April rose by Rs 19, or 0.63 per cent to Rs 3,013 per quintal with an open interest of 84,260 lots.

In a similar fashion, the commodity for delivery in May traded higher by similar margin to Rs 3,057 per quintal in 28,230 lots.

Analysts attributed the firmness in chana futures to rising demand at spot market from dal millers against limited arrivals from producing regions.

REFINED SOYA OIL
Refined soya oil traded higher by 0.25 per cent to Rs 695.40 per 10 kg in futures trade today as speculators created positions amid pick-up in domestic demand due to the ongoing marriage season. At the National Commodity and Derivatives Exchange, refined soya oil for delivery in May rose by Rs 1.70, or 0.25 per cent, to Rs 695.40 per 10 kg with an open interest of 52,580 lots. Similarly, the oil for delivery in May edged up by Rs 1.55, or 0.22 per cent, to Rs 704.65 per 10 kg in 87,310 lots. 

Continue reading →