Commodities Buzz: SMX E-Silver Contract To Go Live Thursday

Silver....
Singapore Mercantile Exchange ( SMX) today said that 'SMX E-Silver', a precious metal futures contract based on India delivered prices quoted in US dollars, will go live from Thursday. The SMX E-Silver futures contract is benchmarked against the most liquid silver futures contract globally. Market participants will be able to hedge their exposure based on one of the most liquid precious metals futures market globally, it added. In addition, they could also avail spread margin benefits between the SMX E-Silver futures (SMESILVER) and the existing SMX Silver futures (SMSILVERCS) leading to considerable savings in their collateral cost.

The SMX E-Silver contract offers a convenient trading unit of 30 kg 999 fineness silver, and is based on the India delivered silver prices quoted in US dollars. Trading will be conducted in March, May, July, September and December with five contracts being listed for trading at any time, SMX said. The contract will be available for trading across multiple time zones, allowing participants in Asia, Europe and the US to trade the contract during their respective trading hours. V. Hariharan, SMX CEO, said: “With the launch of E-Silver futures, SMX has expanded its basket of precious metal contracts, which offers an efficient hedging tool to physical players who have exposure to one of the largest precious metals markets globally.” SMX went live on August 31, 2010 and its trading sessions span Asian, European and US business hours, with central counterparty clearing performed by SMXCC.
Source by Commodity Insights

Gold Rangebound; Focus On ECB, BOE,BOJ

Gold....


Gold futures are trading in a rangebound manner today with many important event on the economic front this week. Gold traders will be hooked on interest rate decisions by the European Central Bank, the Bank of England and the Bank of Japan. To add more the Friday’s data on U.S. nonfarm payrolls will also be closely watched.

Gold for delivery in April are up $2.6 to trade at $1,574.90 an ounce in Asia electronic trading hours on the Comex division of the New York Mercantile Exchange. Gold fell $5.80, or 0.4%, to settle at $1,572.30 an ounce on Friday for the lowest settlement for a most-active contract since July 18. By Friday’s close, prices had tallied a three-session drop of more than $43 an ounce, or 2.7%.
Losses in equties are giving a safe haven support to gold today. Investors are turning away from stocks today in Asia, with Chinese stocks particularly hard-hit.
Gains for the U.S. dollar have dampened gold’s appeal to holders of non-U.S. currencies. The ICE dollar index traded at 82.289 on Monday in Asia, up slightly from 82.265 in late North American trading on Friday.
The U.S. dollar and euro weakened against the yen Monday after a Japanese government nominee for central-bank chief said it would be difficult to buy foreign bonds, and as fresh property curbs hammered Chinese equities. The dollar was fetching ¥93.35 in Tokyo afternoon trade, compared with ¥93.58 in the U.S. late on Friday. The euro was trading at ¥121.50, down from ¥121.87.
MCX April gold futures are trading down nearly Rs 60 at Rs 29684 per 10 grams. The counter may face a resistance near Rs 29745 levels with supports around Rs 29640 and Rs 29600 levels.
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Copper Further Sublimes As Rupee Recovers Ahead of Budget

Copper...


Mr Finance Minister will be presenting the Union Budget. All eyes are set on the proposals from Mr Chidambaram. The commodities will be hoping that there is no transaction tax imposed on it. The anxiety is high and height of it is making Rupee recover against its rival US Dollar. Internal factors have upper hand at the moment as markets will digest only reform friendly budget that will further underpin Rupee from current levels of 53.69, up 0.32% ahead of the budget. Copper sublimed further on MCX as pressure continued even as LME Copper forwards showed recovery. 

The metals have seen a continuous bashing until yesterday when all of them improved including Copper. LME Copper closed at $ 7863 per tonne, up $ 70. The metal breathed easy after assistance from Federal Reserve that the bond buying will continue. Copper is seen trading at $ 7904 per tonne on Thursday.
In Economic reports, the European Central Bank said M3 money supply in the single currency bloc rose at annualized rate of 3.5% in January, above expectations for a 3.2% increase. The U.S. Census Bureau said that total durable goods orders, which include transportation items, tumbled by a seasonally adjusted 5.2% in January, compared to expectations for a drop of 4.4%
Meanwhile, World primary Aluminium production increased by 5.7% in January 2013 compared to the similar period last year. Total reported primary Aluminium production was at 3.92 million tonnes in January 2013 as compared to 3.70 million tons in January 2012.
MCX Copper closed at Rs 428.2 per kg, down 1%. The supports for Copper is at Rs 426 and 425 per kg. Resistance for the contract is at Rs 433 per kg. LME Aluminium settled trading at $ 2016 per tonne, up $ 2.5 per tonne. MCX Aluminium settled at Rs 107.6, down Rs 1.6.
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Gold Inches Up But Stays Under $1600

Gold...

Gold futures inched up in the Asia electronic session today however strong gains in the equities kept it below $1600 an ounce. Gold tallied a gain of nearly $43, or 2.7%, on Monday and Tuesday. It is poised for a loss of around 4% for the month.

Gold for delivery in April is trading up $1.7 at $ 1597.4 per ounce on the Comex division of the New York Mercantile Exchange. It fell $19.80, or 1.2%, to settle at $1,595.70 an ounce yesterday. Prices had traded as high as $1,614.40 during the session.
On Wednesday, investors favored equities over gold. They cheered by a rise in pending home sales in January to the highest level since April 2010. Stocks also got a boost after remarks U.S. Federal Reserve Chairman Ben Bernanke this week assuaged fears over an end to the central bank’s quantitative-easing program.
On the economic front today, Japan's industrial production grew 1% during January for its second-straight monthly increase, the Ministry of Economy, Trade and Industry said Thursday. Transport equipment, including cars, was the top contributor to the gain, the ministry said. The yen gained fractionally after the data, with the dollar slipping from 92.34 to 92.31
MCX April gold futures may open today’s session near Rs 29800 levels with resistance near Rs 29840-870 levels. Yesterday the metal ended lower by 1.16% at Rs 29743 per 10 grams.
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Gains In Indian Rupee Spoils The Party For MCX Copper

Copper.......


The expectations that government will do something on the deficit front in the upcoming budget aided Rupee but spoiled the party for Copper prices. The metal remained declining even when it looked that it had slide too much too fast. An ambitious growth range of 6.1-6.7% in the year 2013-14 shown in the economic survey boosted the Indian Rupee against the US Dollar on Wednesday. The growth rate if achieved would prove fruitful for Foreign Investments in the country. Copper tested a low of Rs 427.6 per kg in intraday trading.

LME Copper was cheering the fact that Federal Reserve Chairman Ben Bernanke gave some ray of hope for the investors. Bernanke has said that the current bond buying programme was essential for US growth. The rise in new home sales was another factor that pumped Copper as the metal is extensively used in construction. LME Copper forwards was trading at $ 7863 per tonne, up $ 70 per tonne.
US Dollar was trading with mild losses against the Euro on Wednesday. The greenback exchanged hands at 1.3092, down 0.25%. Indian Rupee traded at 53.87 against the Dollar, up 0.42%. The Rupee tested a high of 53.61 and a low of 54.09 against the Dollar. Italian 10-bond yields rose to the highest level since December on Tuesday, climbing to 4.91% from 4.37% on Monday, while the yield on Spanish 10-year bonds rose to 5.5% from 5.1%.
MCX Copper April contract was trading at Rs 429.2 per kg, down 0.81%. The prices are supported at Rs 426 per kg. Resistance for the contract is at Rs 433 per kg. Among other metals, Nickel was trading at Rs 901 per kg, down 1% from last night. The prices are expected to find support at Rs 893 per kg.
Source by Commodity Insights

Gold Slips But Stays Above $1600

Gold......



Gold futures slipped in the Asia electronic session today but the metal stayed above the psychological $1600 an ounce mark after it surged to its best one-day gain so far this year.

Gold for delivery in April dipped $4.2 to $1,611.30 an ounce in electronic trading in Asia hours on Wednesday on the Comex division of the New York Mercantile Exchange. In the previous session, the metal rose $28.90, or 1.8%, to settle at $1,615.50 an ounce, vaulting over the $1,600 an ounce mark.
The performance on Tuesday was golds biggest one-day gain in 2013, and came as investors turned to the metal for its safe-haven appeal following an election that resulted in a political gridlock in Italy.
In addition, comments from Federal Reserve chairman Ben Bernanke reassured investors that the central bank wasnt about to pull back on its asset-buying program. Fed bond-buying has previously supported gold. Federal Reserve Chairman Ben Bernanke said Tuesday that he does not see any sign that the Feds ultra-loose monetary policy is creating a bubble in equity markets. I dont see much evidence of an equity bubble, Bernanke said in testimony to the Senate Banking Committee.
In a note that surfaced Tuesday, Goldman Sachs analysts slashed their gold forecasts for this year, saying the turn in the gold cycle is happening faster than they thought. That call came as gold enjoyed some Italian-inspired safe-haven buying that drove European stocks south. Italian stock markets were down nearly 5%.
Goldman slashed its three-month gold-price forecast to $1,615 an ounce from $1,825, its six-month forecast to $1,600 an ounce from $1,805 and its 12-month forecast to $1,550 an ounce from $1,800.
MCX April bullion futures may open todays session below Rs 30000 with support around Rs 29950 and Rs 29800 levels.
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Nickel Under Pressure On LME

Nickel.......


Nickel markets remained under pressure as the world markets struggled to find a way out from technical and panic selling. The political uncertainty in Italy as the upper house was yet to find any party emerging in clear majority led to the selling in the markets. The anxiety of the Federal Reserve Chairman testimony today was also hovering the sentiments on the downside.

LME three month forward Nickel was down by $ 248 per tonne, at $ 16552 per tonne. LME Nickel is at three month lows today's. MCX Nickel was trading at Rs 905 per kg, down 0.17%. The metal has tested a high of Rs 909.2 per kg and a low of Rs 901 per kg.
Source by Commodity Insights