GOLD , SILVER , COPPER , BASE METAL AND MANY MORE DAILY REVIEW29-OCT-2013
Gold
Gold prices closed on a flat note on Monday despite expectations of a
continuing QE program as fall in SPDR Gold Holdings acted as a negative
factor. Holdings in the world's largest gold ETF have slipped to 872.02
tonnes. Yesterday, a stronger DX also restricted upside in gold prices.
In the Indian markets, prices rose 0.1 percent due to Rupee depreciation
and closed at Rs.30758/10 gms after touching a high of Rs.31164/10 gms
on Monday.
Gold imports in value terms in India dropped by 65 percent to $3.9 billion worth of gold in the Sep'13 quarter as compared to $11.1 billion for the same period last year. The decline in imports is mainly on the back of restrictions by the RBI on gold imports. On 22nd July'13, RBI introduced an 80:20 formula for imports of gold under which, 20 percent of every consignment of gold should be imported for re-export purposes. On a quarterly basis, import value for the yellow metal slipped by 76 percent from $16.5 billion in April quarter to $3.9 billion for the Q2 FY2013-14.
Silver
Spot silver prices slipped around 0.2 percent yesterday on the back of strength in the DX along with weak market sentiments in later part of the trade. However, sharp downside in prices was restricted as a result of rise in gold prices along with upside in base metals complex. The white metal touched an intra-day low of $22.32/oz and closed at $22.50/oz in yesterday's trade.
On the MCX, near month contract prices slipped around 0.3 percent and closed at Rs.49561/kg after touching an intra-day low of Rs.49432/kg on Monday.
Gold imports in value terms in India dropped by 65 percent to $3.9 billion worth of gold in the Sep'13 quarter as compared to $11.1 billion for the same period last year. The decline in imports is mainly on the back of restrictions by the RBI on gold imports. On 22nd July'13, RBI introduced an 80:20 formula for imports of gold under which, 20 percent of every consignment of gold should be imported for re-export purposes. On a quarterly basis, import value for the yellow metal slipped by 76 percent from $16.5 billion in April quarter to $3.9 billion for the Q2 FY2013-14.
Silver
Spot silver prices slipped around 0.2 percent yesterday on the back of strength in the DX along with weak market sentiments in later part of the trade. However, sharp downside in prices was restricted as a result of rise in gold prices along with upside in base metals complex. The white metal touched an intra-day low of $22.32/oz and closed at $22.50/oz in yesterday's trade.
On the MCX, near month contract prices slipped around 0.3 percent and closed at Rs.49561/kg after touching an intra-day low of Rs.49432/kg on Monday.
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Outlook
In today's trade, we expect gold prices to trade higher on account of expectations of delay in QE tapering program by the Federal Reserve. Further, a weaker DX will act as a positive factor. However, sharp upside will be capped as a result of decline in SPDR gold holdings. Rupee depreciation will support upside movement in precious metal prices on the MCX today.
In today's trade, we expect gold prices to trade higher on account of expectations of delay in QE tapering program by the Federal Reserve. Further, a weaker DX will act as a positive factor. However, sharp upside will be capped as a result of decline in SPDR gold holdings. Rupee depreciation will support upside movement in precious metal prices on the MCX today.
Base Metals
Base metals on the LME traded higher yesterday mainly due to positive industrial production data from the US. Also, unfavorable pending home sales data lead to a expectations of delay in QE tapering by Federal Reserve acted as a positive factor.
However, strength in the DX along with mixed inventories scenario restricted gains in prices.
In the Indian markets, base metals traded on a positive note due to Rupee depreciation.
Base metals on the LME traded higher yesterday mainly due to positive industrial production data from the US. Also, unfavorable pending home sales data lead to a expectations of delay in QE tapering by Federal Reserve acted as a positive factor.
However, strength in the DX along with mixed inventories scenario restricted gains in prices.
In the Indian markets, base metals traded on a positive note due to Rupee depreciation.
Copper
LME Copper traded on a flat note yesterday mainly on positive industrial production data along with unfavorable pending home sales which signaled delay in QE taper. Further, decline in LME inventories by 0.6 percent to 478,200 tonnes supported gains.
However, strength in the DX along with weak global market sentiments capped sharp gains. Also, rise in interest rates in China, the biggest consumer, continue to exert downside pressure on prices of the red metal. The metal touched an intra-day low of $7155/tonne and closed at $7178/tonne on Monday.
The near month MCX Copper contrac t traded on a flat note and Rupee depreciation prevented sharp fall in prices.
Outlook
In today's session, we expect base metals group to trades higher on the back of expectations of delay in QE tapering by the Federal Reserve along with weakness in the DX. Further, favorable US industrial production data in yesterday's trade will support an upside in prices. However, sharp upside in prices will be capped as a result of forecast for decline in US consumer confidence data in the evening session. Additionally, decline in US pending home sales data in previous trade will restrict positive movement in prices. In the Indian market, Rupee depreciation will support upside in prices.
FOR MORE DETAIL JUST FILL THE FREE TRIAL FORM
In today's session, we expect base metals group to trades higher on the back of expectations of delay in QE tapering by the Federal Reserve along with weakness in the DX. Further, favorable US industrial production data in yesterday's trade will support an upside in prices. However, sharp upside in prices will be capped as a result of forecast for decline in US consumer confidence data in the evening session. Additionally, decline in US pending home sales data in previous trade will restrict positive movement in prices. In the Indian market, Rupee depreciation will support upside in prices.
FOR MORE DETAIL JUST FILL THE FREE TRIAL FORM
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Gold slipped on Tuesday, as the dollar firmed ahead of the U.S. Federal Reserves two-day policy meeting, while a looming Greek crisis failed to trigger sustained flight to safety demand.
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