Today's Commodity News : 11.11.2019
Silver futures rise Rs 171 to Rs 44,043 per kg
Silver futures on Monday traded Rs 171 higher to Rs 44,043 per kg after speculators raised bets, driven by a firm trend overseas. Silver contracts for December delivery rose by Rs 171, or 0.39 per cent, to Rs 44,043 per kg in a business turnover of 2,950 lots on the Multi Commodity Exchange.
Besides, the white metal to be delivered in March shot up by Rs 164, or 0.37 per cent, to Rs 44,640 per kg in 129 lots. Analysts said widening of positions by traders in sync with a firm trend overseas for precious metals mainly influenced silver prices here. In the international market, silver traded 0.10 per cent higher at USD 16.84 an ounce in New York.
Crude oil futures slip on weak global cues
Crude oil futures on Monday fell by Rs 34 to Rs 4,042 per barrel after participants reduced positions, tracking a weak trend in global markets. On the Multi Commodity Exchange, crude oil prices for November delivery dropped by Rs 34, or 0.83 per cent, to Rs 4,042 per barrel with a business volume of 20,411 lots. Similarly, crude oil for December delivery was quoting lower by Rs 29, or 0.71 per cent, at Rs 4,057 per barrel with an open interest of 353 lots. The fall in crude oil futures was mostly due to trimming of positions by traders, in line with weak global cues, analysts said. Globally, West Texas Intermediate crude oil was trading 1.03 per cent lower at USD 56.65 per barrel, while international benchmark Brent Crude traded down by 1.02 per cent at USD 61.87 per barrel in New York.
Gold may lose some of its shine as US-China trade war cools off; riskier asset classes back in focus
In the week ended November 8, MCX gold depreciated 1.6 percent and Comex gold slipped 3.6 percent. The dollar strengthened from 97.1 to 98.23, rising nearly 1 percent, on the back of progress in US-China trade talks. Trade tension between the two economies finally seems to be easing out as both countries decided to roll back tariffs on each others' goods as a part of the first phase of a trade deal. The prospect of an agreement sent stock markets soaring to all-time highs in the US and prompted the Internation Monetary Fund to say a deal easing trade tensions between the US and China could persuade its officials to positively revise forecasts for global growth next year.US ISM non-manufacturing PMI for October increased to 54.7 versus the forecast of 53.5 and 52.6 a month ago. The dollar rebounded and gold nosedived as better-than-expected non-manufacturing data eased some fears of recession. According to World Gold Council, demand for gold jewellery, bars and coins fell sharply in the third quarter. Jewellery demand fell 16 percent to 460.9 tonnes in Q3CY19 from 546.2 tonnes Q3CY18, its lowest level since 2010. While investment in gold-backed exchange-traded funds (ETFs) rocketed. Investment demand rose 110 percent YoY to reach 408.6 tonnes in Q3CY19 from 194.4 tonnes in Q3CY18. India's gold imports in October fell a third from a year earlier, dropping for the fourth straight month as near record-high prices dampened festive buying in the world's second-biggest consumer of the metal. India imported 38 tonnes of gold in October, down 33 percent from 57 tonnes a year earlier. Gold may lose some of its shine this week since sentiment has turned positive for the riskier asset classes with US & China progressing slowly but in a constructive manner. We have had a lot of optimism on the trade front, a lot of news on potential rollback on tariffs and the China deal, which had been the major headwind for growth throughout the last year. Tariffs could be lifted amid the US-China trade deal if an agreement is reached, a White House spokeswoman said, giving no further details. We are seeing a rally in risk markets, dollar surge and equities reaching an all-time high. There had been a portion of long positions built up in the last few months and we are starting to see those liquidating. There might be a limited downside as uncertainty about the trade talks still hover with US President Donald Trump telling reporters that he has not agreed to roll back tariffs on China. From an economic data point of view, UK's Q3 GDP, US' CPI and Fed's Powell's testimony, Germany & Euro-zone Q3 GDP and lastly US industrial production, retail sales, Empire State manufacturing index for October will be releasing. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 1.44 percent to 901.19 tonnes on Friday from Thursday's 914.38 tonnes. The bottom line is the Fed's decision to hold back on further cuts until the economy takes a downturn weighed on the bullion.
Gold prices are expected to trade sideways today
Last week, Gold prices plunged over 3 percent after tensions between U.S. & China eased which boosted the risk appetite amongst investors and dented the demand for the safe haven asset, Gold. The 16 month long trade spat had roiled the markets and boosted the appeal for the safe haven asset, Gold. However, U.S. & China stated that they would revoke few of the tariffs imposed earlier as a part of the phase one agreement of the trade deal. Conciliatory gestures by both the super power nations signalled` towards easing of tension hampering the appeal for the yellow metal. Moreover, a consistent strengthening of the labour market in U.S. supported the Dollar which further weighed on the yellow metal prices. A larger than expected fall was witnessed in the number of Americans filing applications for unemployment benefits which supported the U.S. Dollar.
Outlook
Fading optimism over a possible trade deal between U.S. & China amid weak economic data from China might dent the risk appetite amongst investors and support Gold prices. On the MCX, gold prices are expected to trade sideways today; international markets are trading marginally lower by 0.03 percent at $1462.45 per ounce.
Silver futures on Monday traded Rs 171 higher to Rs 44,043 per kg after speculators raised bets, driven by a firm trend overseas. Silver contracts for December delivery rose by Rs 171, or 0.39 per cent, to Rs 44,043 per kg in a business turnover of 2,950 lots on the Multi Commodity Exchange.
Besides, the white metal to be delivered in March shot up by Rs 164, or 0.37 per cent, to Rs 44,640 per kg in 129 lots. Analysts said widening of positions by traders in sync with a firm trend overseas for precious metals mainly influenced silver prices here. In the international market, silver traded 0.10 per cent higher at USD 16.84 an ounce in New York.
Crude oil futures slip on weak global cues
Crude oil futures on Monday fell by Rs 34 to Rs 4,042 per barrel after participants reduced positions, tracking a weak trend in global markets. On the Multi Commodity Exchange, crude oil prices for November delivery dropped by Rs 34, or 0.83 per cent, to Rs 4,042 per barrel with a business volume of 20,411 lots. Similarly, crude oil for December delivery was quoting lower by Rs 29, or 0.71 per cent, at Rs 4,057 per barrel with an open interest of 353 lots. The fall in crude oil futures was mostly due to trimming of positions by traders, in line with weak global cues, analysts said. Globally, West Texas Intermediate crude oil was trading 1.03 per cent lower at USD 56.65 per barrel, while international benchmark Brent Crude traded down by 1.02 per cent at USD 61.87 per barrel in New York.
Gold may lose some of its shine as US-China trade war cools off; riskier asset classes back in focus
In the week ended November 8, MCX gold depreciated 1.6 percent and Comex gold slipped 3.6 percent. The dollar strengthened from 97.1 to 98.23, rising nearly 1 percent, on the back of progress in US-China trade talks. Trade tension between the two economies finally seems to be easing out as both countries decided to roll back tariffs on each others' goods as a part of the first phase of a trade deal. The prospect of an agreement sent stock markets soaring to all-time highs in the US and prompted the Internation Monetary Fund to say a deal easing trade tensions between the US and China could persuade its officials to positively revise forecasts for global growth next year.US ISM non-manufacturing PMI for October increased to 54.7 versus the forecast of 53.5 and 52.6 a month ago. The dollar rebounded and gold nosedived as better-than-expected non-manufacturing data eased some fears of recession. According to World Gold Council, demand for gold jewellery, bars and coins fell sharply in the third quarter. Jewellery demand fell 16 percent to 460.9 tonnes in Q3CY19 from 546.2 tonnes Q3CY18, its lowest level since 2010. While investment in gold-backed exchange-traded funds (ETFs) rocketed. Investment demand rose 110 percent YoY to reach 408.6 tonnes in Q3CY19 from 194.4 tonnes in Q3CY18. India's gold imports in October fell a third from a year earlier, dropping for the fourth straight month as near record-high prices dampened festive buying in the world's second-biggest consumer of the metal. India imported 38 tonnes of gold in October, down 33 percent from 57 tonnes a year earlier. Gold may lose some of its shine this week since sentiment has turned positive for the riskier asset classes with US & China progressing slowly but in a constructive manner. We have had a lot of optimism on the trade front, a lot of news on potential rollback on tariffs and the China deal, which had been the major headwind for growth throughout the last year. Tariffs could be lifted amid the US-China trade deal if an agreement is reached, a White House spokeswoman said, giving no further details. We are seeing a rally in risk markets, dollar surge and equities reaching an all-time high. There had been a portion of long positions built up in the last few months and we are starting to see those liquidating. There might be a limited downside as uncertainty about the trade talks still hover with US President Donald Trump telling reporters that he has not agreed to roll back tariffs on China. From an economic data point of view, UK's Q3 GDP, US' CPI and Fed's Powell's testimony, Germany & Euro-zone Q3 GDP and lastly US industrial production, retail sales, Empire State manufacturing index for October will be releasing. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 1.44 percent to 901.19 tonnes on Friday from Thursday's 914.38 tonnes. The bottom line is the Fed's decision to hold back on further cuts until the economy takes a downturn weighed on the bullion.
Gold prices are expected to trade sideways today
Last week, Gold prices plunged over 3 percent after tensions between U.S. & China eased which boosted the risk appetite amongst investors and dented the demand for the safe haven asset, Gold. The 16 month long trade spat had roiled the markets and boosted the appeal for the safe haven asset, Gold. However, U.S. & China stated that they would revoke few of the tariffs imposed earlier as a part of the phase one agreement of the trade deal. Conciliatory gestures by both the super power nations signalled` towards easing of tension hampering the appeal for the yellow metal. Moreover, a consistent strengthening of the labour market in U.S. supported the Dollar which further weighed on the yellow metal prices. A larger than expected fall was witnessed in the number of Americans filing applications for unemployment benefits which supported the U.S. Dollar.
Outlook
Fading optimism over a possible trade deal between U.S. & China amid weak economic data from China might dent the risk appetite amongst investors and support Gold prices. On the MCX, gold prices are expected to trade sideways today; international markets are trading marginally lower by 0.03 percent at $1462.45 per ounce.