Thursday, August 1, 2013

MCX Gold Slips Even As Rupee Falls

Gold......
Domestic gold futures on Multi Commodity Exchange slipped today even though the Rupee appreciated and the international gold futures surged.
MCX October gold futures are trading down nearly Rs 20 at Rs 28038 per 10 grams extending yesterday’s losses of more after than 1%. The counter may find support near Rs 27900 and Rs 27750 levels.
The rupee today dropped by 28 paise to 60.68 in late morning deals on the back of a strengthening of the US currency overseas despite a recovery in the equity market. The rupee resumed lower at 60.70 per dollar as against the last closing level of 60.40 at the Interbank Foreign Exchange (Forex) market and dropped further to 60.84.
In the global market, a key gauge of the dollar's performance rose in the early trade, clawing back from multi-week lows suffered after the US Federal Reserve offered no clues as to when it plans to slow the pace of monetary stimulus.
A key gauge of the U.S. dollar’s performance rose on Thursday, clawing back from multi-week lows suffered after the U.S. Federal Reserve offered no clues as to when it plans to slow the pace of monetary stimulus.
The ICE dollar index, which tracks greenback’s movement against six rivals, rose to 81.715, up from 81.464 late Wednesday in North America. The euro on Thursday fell to $1.3272, down from $1.3332 on Wednesday, and the British pound declined to $1.5162 from $1.5248.
Policy decisions were due from both the European Central Bank and the Bank of England later Thursday. Improving economic data can bolster the view that the Fed is moving closer to slowing the pace of asset purchases. The monthly jobs report due Friday marks the last key piece of U.S. data for this week
International gold futures are trading up $ 4.9 at $ 1317.9 per ounce on the COMEX division of New York Mercantile Exchange. However the metal continued to face resistance near $1350 levels.
Source by Commodity Insights

Copper Rises Amid Supportive Cues From US And China

MCX Copper
futures continued to edge higher today, as global cues remained supportive. Asian stocks edged up on a decent uptick in US GDP yesterday and lack of any further taper talk from the US Federal Reserve also supported sentiments. Copper has been strained on worries posed by Chinese demand slowdown in last few days but witnessed a good recovery this week with three week lows around $3.04 auguring as good support levels. COMEX copper is up 0.37% at $3.130 per pound right now.

The US Federal Reserve stated yesterday that the information received since the Federal Open Market Committee met in June suggests that economic activity expanded at a modest pace during the first half of the year. Labor market conditions have shown further improvement in recent months, on balance, but the unemployment rate remains elevated. Household spending and business fixed investment advanced, and the housing sector has been strengthening, but mortgage rates have risen somewhat and fiscal policy is restraining economic growth. The US economy grew at an annualised rate of 1.7% in the second quarter of 2013, largely in line with the expectations after the recent surge in housing and consumer confidence data.

Meanwhile, today, China's manufacturing PMI improved slightly from 50.1 in June to 50.3 in July, but was still close to the neutral level of 50. The July reading indicates that the growth momentum of China's manufacturing sector has stayed weak, according to the National Bureau of Statistics and China Federation of Logistics and Purchasing. Ten of the twelve sub- indices were higher than their respective levels in the previous month. The rise in the headline PMI in July was largely due to the accelerating growth of output.

The US dollar has come off its six week low against the Euro and could gain further ahead of the monetary policy meetings of the ECB and the BOE. However, copper is placed rather well given the US GDP figures and Chinese manufacturing data. Unless the US dollar launches a massive rally, the metal should hold on. MCX Copper futures broke above Rs 420 per kg levels yesterday and currently trade at Rs 421.90, up Rs 0.35 per kg on the day.

Source by Commodity Insights