Gold Bounces Back In Asia

Gold........

Gold futures bounced back in the Asia electronic session today as investors prepared for a statement on monetary policy from the U.S. Federal Reserve, as well as the preliminary estimate of second-quarter growth for the world’s largest economy.

The U.S. currency, as tracked by the ICE dollar index, is coming off a third straight weekly loss, dragged lower by expectations that the Fed will reiterate its stance on keeping interest rates low for the foreseeable future.

The ICE dollar index, a gauge of the greenback’s movement against six other major currencies, rose to 81.856, up from 81.815 late Tuesday in North America. The euro bought $1.3260, slightly less than $1.3265 on Tuesday.

Gold for December delivery is trading up $6.6 at $ 1331.4 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it fell $4.80, or 0.4%, to settle at $1,324.80 an ounce after Monday’s gain of $7.70, or 0.6%.

The consumer confidence index fell slightly in July to 80.3 from an upwardly revised 82.1 in June, the Conference Board said Tuesday.

Traders expect the FOMC to emphasize an accommodative monetary policy. Though many economists see the Fed as likely to decrease the amount of bond buying at its September meeting, there’s also speculation that tapering will begin near the end of the year or later. The Fed currently buys $85 billion a month in Treasury and mortgage-backed securities.

Before the central bank’s announcement at 2 p.m. Eastern time, the U.S. Commerce Department will release second-quarter gross domestic product numbers. Meanwhile, the European Central Bank and the Bank of England are due to each release statements on monetary policy Thursday.

MCX October gold futures may open today’s session near Rs 28350-400 levels with resistance near Rs 28550 levels.

Source by Commodity Insights

Technical Comment For Day: Gold

Gold................

Gold breached the ascending triangle pattern for August contract. With few days left in August expiry contract to expire, the interest is quickly shifting towards October contract. In October contract, resistance of Rs 27777 per 10 grams was broken as Gold closed at Rs 27872 per 10 grams. The next resistance is at Rs 28300 and 28400 levels. Looking at the open interest generation in this contract it seems that upside targets will be achieved in the contract. The rise of 1.33% yesterday was with very heavy volumes of 11782 kgs, not seen for this contract since initiation.

Source by Commodity Insights

Gold Extends Weekly Gains

Gold.......

Gold futures

started the week on an optimistic note, extending its last week's gains in the Asia electronic session today. The start attractions this week are the Non Farm Payrolls data and the second-quarter GDP data.

Gold futures for August delivery are trading up $5.5 at $ 1327 an ounce on the Comex division of the New York Mercantile Exchange. It dropped 0.55% on Friday to settle the week at $1,321.50 a troy ounce.

On the week, gold prices added 0.69%. The metal is likely to face a resistance near $1350-1400 levels in the near term. The commodity jumped to almost five-week high of USD1,347.85 a troy ounce on Tuesday, a day after a weaker-than-expected report on U.S. home sales fueled market talk that the Federal Reserve will keep stimulus measures in place for now.

The National Association of Realtors reported earlier that existing home sales fell 1.2% to 5.08 million units in June, missing market calls for sales to rise 0.6% to 5.25 million units in June. Sales for May were revised down to 5.14 million from a previously reported 5.18 million.

On the data front this week, we have pending home sales, house prices, consumer confidence, construction spending, and the manufacturing PMI, and private sector jobs from US. While jobs number provide each months US data highlight, this week will also see the release of the first estimate of June quarter GDP on Wednesday and a Fed policy meeting to boot. The Federal Reserve, the Bank of England and the European Central Bank all hold policy-setting meetings this week.

MCX August gold futures may open today's session near Rs 27600 levels with resistance near Rs 27700 and support near Rs 27520 levels.

Source by Commodity Insights

Gold Rises On Haven Buying

Gold.......

Gold futures rose in the Asia electronic trades today as losses in equity markets triggered safe haven buying in the metal. Yesterday, the metal ended lower, marking its first decline in four sessions just after the metal’s biggest one-day price gain in more than a year.

Gold for August delivery is trading up $6.2 at $ 1340.9 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it eased $1.30, or 0.1%, to settle at $1,334.70 an ounce.

On Monday, the August contract jumped $43.10, or 3.3%, to $1,336 an ounce. That represented the largest one-day percentage and dollar gain since June 29, 2012. The settlement was also the highest for a most-active contract since June 19 of this year.

The Reserve Bank of India (RBI) on Monday put further curbs on gold import mandating that banks and nominated agencies should retain 20 percent (or one fifth) of every lot of gold imports in the customs bonded warehouses. They will be able to import further gold only if they release the 75 percent of that stored gold for the purpose of exports.

The restrictions are meant to contain gold imports, which in addition to oil, is putting pressure on the current account deficit that soared to a record high of 4.8 per cent in 2012-13.

The RBI and the government have taken measures to curb the rampant demand for gold, which makes India the world's biggest buyer and sent May imports to a record 162 tonnes as people took advantage of falling prices.

MCX August gold futures may open today’s session near Rs 27540 levels with resistance near Rs 27600-620 around Rs 27460-40 levels.

Source by Commodity Insights

Technical Comment For The Day: Gold

Gold.......

MCX Gold August contract closed at Rs 27574 per 10 grams, gaining only 0.05 percent in the day. The prices were on the way to test Rs 27800 as the target before profit booking kicked in. The consolidation in Gold got broken this week as the prices managed to surpass Rs 26700 per 10 grams as the key Resistance. The rally has been supported by steady open interest. The bulls will still be active once the profit taking gets over. The immediate targets for the day however will be revised to Rs 27650.

Trading Strategy: BUY MCX GOLD AT 27350 TARGET 27650 SL 27280

Source by Commodity Insights

Gold Jumps Near 2% In Europe

Gold......
Gold futures are trading steady near 1 month highs supported by weakness in the dollar and strong oil futures. Today, the metal struck as high as $1322.50 an ounce, its highest since June 20.
Oil for August delivery rose 40 cents, or 0.4%, to $108.45 a barrel in electronic trade with weakness in the dollar providing a platform for the commodity to reach for a new 52-week high.

Gold for August delivery climbed $25.70, or 2%, to $1,318.90 an ounce in electronic trade on the Comex division of the New York Mercantile Exchange. It ended up 0.7% to $1,292.90, the highest settlement for a most-active contract since June 19.
Gold prices finished last week higher by 1.2%, gaining in part after U.S. Federal Reserve Chairman Ben Bernanke said in congressional testimony that the central bank had no set timetable for slowing its monetary stimulus. The stimulus measures, known as quantitative easing, have been considered supportive for gold prices.
The dollar-denominated commodity benefitted from a decline in the greenback overnight, with the moves weighing on the ICE dollar index. The dollar lost some ground against the Japanese yen as Prime Minister Shinzo Abe’s ruling party consolidated its power in this weekend’s election.
Hedge funds and money managers raised their bullish bets in gold and silver futures and options in the week to July 16, while they trimmed net shorts in copper, a report by the Commodity Futures Trading Commission showed on Friday.
MCX August gold futures are trading up nearly Rs 400 at Rs 27090 per 10 grams. The counter hit a high of Rs 27180 earlier today.
Source by Commodity Insights

Gold Stays Beneath $1300; Equities Tumble

Gold............
Gold futures stayed beneath $1300 an ounce in the electronic trades today, with the Asian equities also trading lower on economic concerns.
Chinese stocks declined to lead most Asian markets lower today, as a recent spike in Shanghai interbank interest rates fueled worries about the world’s second-largest economy. The Hang Seng Index in Hong Kong fell 1.5%, dropping for a fifth straight session to stay close to nine-month lows, while the Shanghai Composite tumbled 2.2%.
Gold futures for August delivery are down $1 at $ 1291 an ounce on the Comex division of the New York Mercantile Exchange. It rose 0.75% on Friday to settle the week at $1,295.55 a troy ounce. For the week, gold prices lost 6.8%, the worst weekly decline since September 2011. The metal is likely to find support near $1250 levels with resistance near $1315 levels.
Sentiment on the precious metals was dampened amid expectations the Federal Reserve will begin to taper off its bond-buying program by the end of this year.
Gold prices plunged more than 5% on Thursday after Fed Chairman Ben Bernanke said the central bank could begin slowing asset purchases by the end of 2013 and wind them down completely by the middle of 2014 if the economy picks up as the central bank expects.
An exit from the stimulus would deal a heavy blow to gold, which has thrived on demand from investors who buy gold to hedge against the inflationary risks of loose monetary policies.
MCX August may open today’s session near Rs 27000 per 10 grams. In the near term the commodity may find support near Rs 26700 levels and resistance near Rs 27800 levels.
In the coming week, investors will be closely watching U.S. data on durable goods orders, jobless claims and consumer confidence for signs that the economic recovery is on track.
Any improvement in the U.S. economy could scale back expectations for further easing, putting upward pressure on U.S. yields and boosting the dollar.
Source by Commodity Insights

Gold Up After Meltdown, COMEX Futures Still Under $1300

Gold.........

MCX Gold futures found a floor today as global prices edged up after a massive spate of selling in last two sessions. The yellow metal tumbled to fresh two and half year lows under $1270 per ounce today on worries about a possible tapering of the asset purchases by the US Fed. However, the metal launched a recovery in electronic moves as European stocks edged up and bargain hunters chipped in. The commodity quotes at $1292.90, up $6.70 per ounce on the day right now.

Gold has been hit very hard this week as the Federal Reserve Chairman Ben Bernanke said on Wednesday that the central bank may start to scale back its asset purchases later this year if the economy continues to strengthen, as the central bank expects. The Fed, which kept monetary policy on hold after a two-day meeting, signaled greater optimism about the economy, forecasting that the unemployment rate could fall to 6.5% by 2014, one year sooner than the central bank had previously estimated.

While this made most of the risky assets take a lot of drubbing, the US dollar marched upwards. Dollar hit a two-week high of 1.3161 against the Euro yesterday before easing slightly today. The equities also paced up in Europe after St. Louis Fed President James Bullard stated that the decision by Federal Reserve to lay out its plan to reduce the pace of asset purchases over the next year was badly timed.

In a statement explaining his dissent from the Fed's policy statement, Bullard said the central bank should have waited for more tangible signs that the economy was healing and that inflation was no longer moving lower. He noted that the Fed trimmed its own forecast for GDP growth and inflation in 2013 and made investors turn around from the downward swoon witnessed after the Fed meet.

This is supporting gold too. However, with an all-important trigger of $1300 having already broken in a convincing manner, room for upside gains looks limited for gold. The yellow metal might endure another sell off if this mark fails to overcome in evening. MCX Gold futures slipped today but were largely in a tight range, as the Rupee remained weak. MCX Gold futures for August moved in a corridor of Rs 26727-26957 per 10 grams and currently trade at Rs 26776, down Rs 93 per 10 grams or 0.35% on the day with 5.25% increase in the open interest.

Source by Commodity Insights

Gold Gets Slammed As Fed Hints Tapering

Gold............

Gold futures got slammed below the crucial mark of $1340 an ounce in the Asia electronic trades today after the Federal Reserve Chairman Ben Bernanke revealed that the central bank may start to scale back its asset purchases later this year if the economy continues to strengthen.
The Fed, which kept monetary policy on hold after a two-day meeting, signaled greater optimism about the economy, forecasting that the unemployment rate could fall to 6.5% by 2014, one year sooner than the central bank had previously estimated.
The Fed’s newly revised forecast and Bernanke’s comments slammed U.S. financial markets. Stocks on Wall Street ended sharply lower and the 10-year Treasury yield surged to 2.33%, its highest level since March 2012.
Bernanke, speaking in a news conference after the Fed meeting, tried to decouple a tapering of its asset purchases from any hike in short-term interest rates. The Fed has said it would keep rates close to zero so long as the jobless rate, now at 7.6%, was above its 6.5% threshold.
And the Fed chairman stressed the bank won't start to hike rates even once its economic targets are met. He said the bank has to be convinced the economic recovery is on a solid upward path before it starts to pull back.
US August bullion futures were smashed to hit the low of $1338.6 an ounce on COMEX division of New York Mercantile Exchange.
MCX August gold futures may open today’s session near Rs 27600 levels with support around Rs 27400-300 levels.
Source by Commodity Insights

Gold Dips Below $1400; ECB Due

Gold........

Gold futures dipped below $1400 an ounce in the Asia electronic trades today with investors in caution ahead of European Central Bank’s meeting. Losses in the equity markets may support the metal at lower levels.
Asian markets fell Thursday after a big drop on Wall Street in the wake of a weak U.S. private-sector jobs report, raising concerns about Friday’s crucial nonfarm payrolls data. Japanese equities were tormented by more volatility that also affected the yen and bond yields, dragging stocks closer toward a so-called bear market.
Gold for August delivery is trading down $1 at $ 1398 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it climbed $1.30, or 0.1%, to settle at $1,398.50 an ounce. Earlier, it had climbed by as much as $13 to tap a high around $1,410.
Investors showed caution ahead of the European Central Bank’s meeting on Thursday, as well as official U.S. government employment figures due Friday that were likely to offer a hint as to what the Federal Reserve will decide to do with its bond-buying program.
Automatic Data Processing Inc. reported that the economy gained 135,000 jobs in May, below expectations for a gain of 170,000. Other data showed U.S. productivity reduced to 0.5% in the January to March period from a prior read of 0.7%, while the U.S. services industry accelerated a bit in May.
U.S. equities extended their losses into a second day on the back of those economic reports, luring some investors to the metals market. Weak jobs growth could further strengthen the case for the Fed to maintain its $85 billion-a-month bond-buying program.
MCX August gold futures may open today’s session near Rs 27600 levels with support near Rs 27540 levels.
Source by Commodity Insights

Gold Slips Further As Equities Rally

Gold.......

Gold futures slip further depressed by rally in the Asian and European equity markets and strength in the US dollar. The metal may dip below $1400 if the markets continue to rally along with the US dollar.
Gold for August delivery gave up $6.6 to $1,405 an ounce in electronic trade on the Comex division of the New York Mercantile Exchange. It rose $18.90, or 1.4%, to settle at $1,411.90 an ounce on Monday.
The prices reclaimed the $1,400-an-ounce level, helped by a decline in the U.S. dollar on data showing a contraction in U.S. manufacturing in May. Dollar-denominated commodities tend to benefit from a weaker greenback as it makes them less expensive for holders of other currencies.
Monday’s weak manufacturing report from the Institute of Supply Management curbed concerns that the U.S. Federal Reserve is preparing sooner than later to taper its bond-buying program, which has been supportive for gold.
The markets will further assess the Fed’s quantitative easing program — aimed at stimulating economic growth — when the widely watched U.S. employment report for May is released on Friday.
The U.S. dollar rose against most major rivals, the ICE dollar index is trading at 82.759, higher than Monday’s level of around 82.687.
MCX August gold futures are trading down more than Rs 50 at Rs 27276 per 10 grams. The traders may short it with the target of Rs 27230 and Rs 27170 levels with stop loss around Rs 27320 levels.
Source by Commodity Insights

MCX Gold Jumps By Rs 100

Gold.......

Domestic gold prices jumped by more than Rs 100 per 10 grams in the early European session today, with the international gold prices jumped $3 per ounce.
MCX August gold futures are trading at Rs 27079 per 10 grams, up more than Rs 100. The counter may face a resistance near Rs 27150 – 27200 levels.
Gold for August delivery rose $3.50, or 0.3%, to $1,396.60 an ounce on the Comex division of the New York Mercantile Exchange. On Friday, it tumbled 1.75% on Friday to settle the week at $1,387.35 a troy ounce.
The metal on Friday dropped $19, or 1.4%, hurt in part after better-than-expected data about manufacturing activity in the Chicago area, and after a gauge on U.S. consumer sentiment in May reached the highest level since 2007. The U.S. dollar turned higher after the reports. A stronger dollar tends to press down on prices of dollar-denominated commodities by making them more expensive for holders of other currencies.
Gold futures fell 5.4% in May, in part as gains in equities drew investors away from safe-haven assets such gold. May’s decline marked the seventh monthly drop for gold prices in the last eight months.
The market on Monday will look for manufacturing figures from the U.S., as well as the euro area, Germany, France and Italy.
In other action Monday, July copper rose 3 cents, or 0.8%, to $3.32 a pound. The industrial metal was in focus with the release of a final reading of a May version of China’s Purchasing Managers’ Index by HSBC on Monday. HSBC’s index fell to 49.2, down from a preliminary reading of 49.6.
Source by Commodity Insights

Gold Retreats From Highs Near $1400

Gold..........

MCX Gold futures for June are trading marginally on a bearish note as the global prices retreated in Asian trades after gaining overnight. The equities in Asian are mixed though the bearish undertone in very much evident in Japanese stocks after a massive 7% correction yesterday. Markets are worrying about a possible reversal in ultra easy money policies of the US Fed much earlier than what was expected. The turmoil in equities has been supportive for Gold though. The metal rallied from lows around $1355 per ounce and neared $1400 per ounce yesterday. The counter quotes at $1391.40 per ounce, down 40 cents per ounce on the day right now.

Chinese growth worries came back to the forefront yesterday. China HSBC flash manufacturing PMI for May came in at 49.6, down from 50.4 in April and down from 50.4 expected for May. This is a seven month low back into contraction territory reflects slowing domestic demand within China and global slowness hindering exports. The sentiments were already down after the US Fed minutes and Bernanke comments yesterday. Japanese stocks slipped by more than 7% amid a wild run in government bonds and European stocks are also down around 2%.

US Federal Reserve chairman Ben Bernanke hurt the risky assets on Wednesday by suggesting the current quantitative easing measures that have been pushing US growth could start to taper off as soon as June. His speech tried to balance competing objectives. He said the US economy was improving but headwinds including government spending cuts were dragging on the recovery. He said the job market was improving but it remains weak overall and participation rates are still moving down. However, Gold has been broadly supported after the Fed comments.

The metal has slipped nearly 20% this year as some investors lost faith in the metal as a store of value and amid concern that the Fed may scale back economic stimulus measures. Assets in the SPDR Gold Trust, the biggest bullion-backed exchange-traded product, dropped to 1,020.07 metric tons yesterday, the lowest since February 2009, maintaining an outflow, which has been a perennial feature of gold trade this year. The local gold futures have been supported given the buying in spot markets around Rs 25800-26200 levels. The MCX Gold futures are trading at Rs 26377, down Rs 63 per 10 grams or 0.24%. Prices had briefly hit above Rs 26500 in early moves.

Source by Commodity Insights

Gold Down As Equities Rally on QE

Gold.......

Gold futures are trading lower as the equities cheered taking the Japanese stocks toward fresh multiyear highs on indication that the Federal Reserve Bank wasn’t close to slowing its asset purchases.
The rally in equity market has recently taken away the shine from gold as investors have taken away their money from gold and other commodities and have invested in the stock market.
U.S. stocks rose on Tuesday, with the Dow industrials and S&P 500 finishing at record highs, after comments from two Federal Reserve officials suggested that the central bank is not close to tapering its bond-buying program. The Dow Jones Industrial Average gained 52.30 points, or 0.3%, to end at 15,387.58, notching its 19th consecutive Tuesday rise. The S&P 500 index climbed 2.87 points, or 0.2%, to 1,669.16,
In Asia, the Nikkei Stock Average, which ended at multiyear highs in each of the last three trading sessions, climbed a further 1.1% to 15,555.82, while the broader Topix added 0.8%.
Gold for June delivery is trading down $2 at $ 1375 an ounce on the Comex division of the New York Mercantile Exchange. It shed $6.50, or 0.5%, to settle at $1,377.60 an ounce, paring losses that had taken prices to a low below $1,360.
On Tuesday, St. Louis Fed President James Bullard said the central bank should continue with its present bond-buying program and adjust the rate of purchases in view of incoming data on growth and inflation. In a separate speech, New York Fed President William Dudley said he’s not sure which way the Fed will adjust the size of its bond-purchase program.
The program has helped support gold as quantitative easing tends to pressure the dollar and can lead to inflation. Gold is often seen as a hedge against inflation.
Fed Chairman Ben Bernanke on Wednesday will testify before the Joint Economic Committee about the central bank’s economic outlook and the FOMC will release minutes from its most recent policy meeting.
MCX June gold futures may open today’s session near Rs 26100 levels with resistance near Rs 26200-300 and support near Rs 25950.
Source by Commodity Insights

Gold Extends Rally; FOMC In Focus

Gold........

Gold futures extended the rally towards $1400 an ounce in Asia electronic session today snapping a seven-session losing streak. The bullion traders are now focusing on FOMC meeting minutes

Gold for June delivery is trading up $6 at $ 1389 an ounce in Asia electronic session on the Comex division of the New York Mercantile Exchange. Yesterday, it settled up $19.40, or 1.4%, to $1,384.10 an ounce after tapping a low below $1,340.

Gold prices dropped sharply during the Asian trading session as investors continued to sell the precious metal amid speculation over an earlier-than-expected end to the Federal Reserve’s quantitative easing program.

Gold prices have fallen about 6% this month following April’s loss of 7.8% with the market hurt by constant outflows from gold-backed exchange-traded funds, including SPDR Gold Trust.

Sentiment on the precious metal was expected to remain bearish after data showed investors held 74,432 short contracts on gold, the highest level since June 2006.

Gold traders are now looking ahead to Wednesday’s Federal Reserve minutes, as well as testimony on the economic outlook and monetary policy by Fed Chairman Ben Bernanke.

Elsewhere on the Comex, silver for July delivery fell 3.7% to trade at $21.52 a troy ounce.

Silver futures were down by as much as 9.5% earlier in the session to hit a daily low of $20.21 a troy ounce, the weakest level since September 14, 2010.

According to some market participants, silver’s plunge was triggered by a sudden move higher in the yen during early Asian trading hours. The yen found support after Japan’s Economy Minister Akira Amari indicated that the yen’s correction from excessive strength was almost over and said that further yen weakness could have a negative impact on Japan’s economy.

MCX June gold futures may open today’s session above Rs 26000 with resistance near Rs 26100-200 levels.

Source by Commodity Insights

Gold Extends Losses As Dollar Sharpens

Gold......

Gold futures extended losses below $1460 an ounce in the Asia electronic session today as the US dollar sharpened above 100 yen level for the first time in four years.

Yesterday, the U.S. dollar rose above the 100 Japanese-yen-level on as recent stronger data points have eased investors’ fears about U.S. economic growth.

The dollar bought ¥101.16, up from late Thursday’s level of ¥100.48. The dollar managed to bounce above the ¥100 threshold after Thursday’s release of weekly U.S. jobless data, which came in better than anticipated.

Gold for June delivery is trading down $8.8 at $ 1459.8 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it fell $5.10, or 0.4%, to settle at $1,468.60 an ounce. Gold on Wednesday climbed $24.90, or 1.7%, to $1,473.70.

The dollar’s climb toward the ¥100 mark had accelerated after Japan’s central bank in early April unveiled a massive stimulus program, but greenback kept running into resistance in its tests of the triple-digit mark until Thursday.

The Aussie was little changed Friday after the Reserve Bank of Australia cut its 2013 inflation forecast, seeing the level at about 2.25% compared with its previous view of 2.5%. In a statement about monetary policy, the RBA also said it expects economic growth to be a little below trend over the rest of this year, before picking up pace through 2014. Earlier this week, the RBA cut its key interest rate by a quarter-percentage point to a record low 2.75%.

The euro traded at $1.3040, little changed from $1.3038 late Thursday. The British pound was also flat against the greenback Friday from late Thursday’s level of $1.5442.

MCX June bullion may open today’s session near Rs 27050 levels with support near Rs 27000 and Rs 26900 levels and resistance near Rs 27110 levels.

Source by Commodity Insights

MCX Weekly Review: COMDEX Slips More Than 2%

MCX Comdex was down by 2.03% to 3466.27 for the week till Thursday. MCX Metal was down by 2.79% to 4379.78 and MCX Energy was down by 1.12% to 3537.60.

Bullion: 

Gold June 13 contract was down by 0.47% to Rs 26914 per 10 grams, Gold M July 13 contract was down by 0.66% to Rs 27042 per 10 grams, Goldguinea May 13 contract was down by 0.73% to Rs 21533 per 8 grams, gold Petal May 13 contract was down by 0.70% to Rs 2691 per gram and Gold Petal Del May 13 contract was down by 0.44% to Rs 2720 per gram. Silver July 13 contract was down by 2.51% to Rs 44633 per kg, Silver M June 13 contract was down by 2.51% to Rs 44668 per kg, Silver MIC June 13 contract was down by 2.50% to Rs 44675 per kg and silver1000 June 13 contract was down by 1.27% to Rs 44288 per kg.

Metals: 
Steel RPR May 13 contract was up by 0.79% to Rs 27910.00 per MT while Aluminum May 13 contract was down by 7.42% to Rs 97.30 per kg, Alumini May 13 contract was down 7.47% to Rs 97.30 per kg, lead May 13 contract was down by 6.97% to Rs 104.80 per kg, Lead Mini May 13 contract was down by 6.93% to Rs 104.80 per kg, zinc May 13 contract was down by 6.36% to Rs 97.90 per kg, zinc mini May 13 contract was down by 6.36% to Rs 97.90 per kg, nickel July 13 contract was down by 5.97% to Rs 810.80 per kg, Nickel M July 13 contract was down by 5.69% to Rs 810.40 per kg, Copper June 13 contract was down by 5.32% to Rs 372.15 per kg, Copper M June 13 contract was down by 5.33% to Rs 372.10 per kg.

Energy: 

Natural gas July 13 contract was down by 5.61% to Rs 223.80 per MMBTU, Brent crude oil May 13 contract was down by 1.91% to Rs 5490.00 per barrel and Crude oil June 13 contract was down by 0.94% to Rs 5046.00 per barrel.

Agri Commodities: 

Cardamom June 13 contract was up by 1.95% to Rs 792.80 per kg, Cotton July 13 contract was up by 0.88% to Rs 18340.00 per bale while Potato July 13 contract was down by 6.70% to Rs 951.20 per 100 kgs, Menthaoil May 13 contract was down by 3.83% to Rs 919.10 per kg, CPO May 13 contract was down by 1.13% to Rs 454.70 per 10 kgs, Kapaskhali May 13 contract was down by 0.35% to Rs 1419.50 per 100 kgs.

Powered by Commodity Insights

MCX Gold Races Higher On Solid Fresh Buying

Gold....
MCX Gold futures raced higher in tune with the global cues today as buying interest returned after a massive slide in the last session. Gold slipped for a third session yesterday as traders locked further gains after recent array of gains ahead of the US FOMC meet. COMEX futures had edged up above $1470 per ounce earlier in the week but failed to hold on above the level as commodities witnessed yet another correction. However, some buying is emerging now as investors get over the latest FOMC statement and wait for the European banks turn today. COMEX Gold is quoting at $1454.40, up $8.20 per ounce on the day.

The European Central Bank decided to lower its benchmark interest rate by 25 basis points to 0.50%, very much as expected. However, since this was already factored in, Gold was sitting unmoved after the announcement. The Fed stated yesterday that information received since the Federal Open Market Committee met in March suggests that economic activity has been expanding at a moderate pace. Labor market conditions have shown some improvement in recent months, on balance, but the unemployment rate remains elevated.

Household spending and business fixed investment advanced, and the housing sector has strengthened further, but fiscal policy is restraining economic growth. Inflation has been running somewhat below the Committee's longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices. Longer-term inflation expectations have remained stable.

In fact, the Fed expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens. This took aside the calls for an early end to the quantitative easing regime.

On Wednesday, China's official purchasing managers' index (PMI), which mainly focuses on the state-owned enterprise sector, fell to 50.6 in April from 50.9 in March, indicating a slowdown in manufacturing activity that was led by a slump in new export orders. A reading above 50 indicates expansion in the manufacturing sector while a reading below 50 means that manufacturing activity shrank.

Gold had tumbled in a freakish manner a few days back. There were concerns that debt stricken European country Cyprus might have to sell gold holdings to raise finances. Traders fear that this would load up supplies in global markets in the short term. Massive unloading in Gold ETF's was also responsible for the worst crash in gold prices for three decades.

Gold corrected more than 40 dollars in the current week before the current upswing. The US dollar slipped to its two month low against the Euro yesterday though some moderate gains have emerged in the currency today. MCX Gold futures broke under Rs 27000 per 10 grams this week and closed with heavy losses yesterday. The counter quotes at Rs 26706, up Rs 166 per 10 grams or 0.63% on the day with 7% increase in open interest indicating fresh buying.

Source by Commodity Insights

Gold Advances Further In Europe

Gold......

Gold futures

advanced further in the early Europe session today as the US dollar continued to loose steam in wake of Friday’s weaker-than-expected economic-growth number and caution ahead of what is expected to be a busy week of data and monetary-policy decisions.

The advance came as the dollar extended its fall in Asia on Monday, with the ICE dollar index a measure of the greenback’s performance against six major global currencies — sliding to 82.326 by mid-afternoon in Hong Kong, compared with 82.484 in North America late on Friday.

Gold futures for delivery in June are up $19.1 to $1,472.7 an ounce on the Comex division of New York Mercantile Exchange. The bounce comes after prices retreated $8.40 in a regular session on Friday. The metal recorded gains of more than 4.2% last week, for its first advance in five.

The coming week will bring another set of key U.S. indicators, including a government report on consumer spending on Monday, the consumer confidence index on Tuesday, monthly trade figures on Thursday, and the crucial non-farm payrolls data for April on Friday. April manufacturing indicators are also set for release from the U.S., China and the euro zone.

Furthermore, the Federal Open Market Committee monetary-policy decision is due Wednesday, while the European Central Bank is expected by many economists to cut interest rates by a quarter-point on Thursday.

MCX June bullion futures are trading up Rs 30 at Rs 27229 per 10 grams. The traders may buy it at current levels with target of Rs 29290 and Rs 29350 levels with stop loss of Rs 29190.

Source  by Commodity Insights

Weekly Bullions Wrap Up: COMEX Gold Contract Rises By $ 58 In A Week

Gold.....

COMEX Gold has recovered by 4.1 percent 0r $ 58 per troy ounce in the week to closed at $ 1453.6 after testing a low of $ 1321.5 per troy ounce on 16 April 2013. Gold recovered the most in ten months as a heavy rush to purchase the metal shooted the value. Speculators and traders believed that the slide in Gold was too much too fast and therefore they are cashing opportunities to further average Gold at lower levels. Chinese economic growth and calls that Cyprus will sell its Gold holdings resulted in dumping of Gold from higher levels.
The investment demand was a big question that wiped $ 130 per ounce on a single day in Gold on 15 April 2013. Data of jobless claims from US was on a positive side. US Department of Labour said that the jobless claims in US declined to 339000 last week, a level not seen since January 2008. This indicated that the risk appetite in the commodities will improve in days to come. Supporting the yellow metal was the rise in Euro against the US Dollar. The greenback ended the week at 1.3025 against the Euro.
Even after a recovery it is expected that higher levels might see fresh volatility as traders will be lured to book profits amid uncertainty from China and Eurozone. World biggest ETF, SPDR Gold holdings were at 1083.05 tonnes.
Source by Commodity Insights