Commodity market updates


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Commodity market updates

  1. 1. Commodity noon session<br />
  2. 2. Bullions<br />Tradingscenario in the bullions today<br />The market is taking cues from European debt crisis and the anticipation of third round of quantitative easing by the US government. The present rally is driven by the investment demand from the Investors as the physical consumption especially from the India has been muted.<br />The U.S. Dollar Index, which tracks the greenback against six major counterparts including the euro, dropped as much as 0.4 percent today. <br />Silver for immediate delivery dropped 0.2 percent to $30.10. The metal climbed to $30.26 yesterday, the highest since 1980. Spot silver has advanced 78 percent this year, outperforming gold.<br />
  3. 3. Bullions (Contd..)<br />The gold futures were little changed during in the Asian trading session, may climb higher as the investors are anticipating the money infusion from the US and Euro zone governments will boost the alternative investment appeal of precious metal against the dollar and other currencies.<br />Gold for immediate delivery traded at $1,421.95 an ounce after earlier losing as much as 0.4 percent. The metal climbed to an all-time high of $1,427.55 yesterday. The February- delivery contract in New York gained 0.4 percent to $1,421.30 an ounce, after reaching a record $1,429.40 yesterday.<br />The concerns over the recovery in the US economy and the sovereign debt crisis in the euro zone is fueling the speculation of further stimulus package may be announced, this is boosting the appeal of precious metals and weaken the dollar against the major currencies.<br />
  4. 4. Crude oil.<br />What was the trend in the Crude?<br />The crude oil from the 26 month high as the traders exited their positions to lock in the gains as the crude as surged by 6.5 percent during the last week.<br />The futures dropped for first time since five day’s on the concern over the possibility of European officials failing to agree on the measures delimit the regional debt crisis, that is posing threat to the economy. <br />The January contract fell as much as 0.7 percent, to $88.80 a barrel, in electronic trading on the New York Mercantile Exchange. Yesterday, it rose 19 cents to $89.38, the highest since Oct. 7, 2008. Prices have gained 12 percent this year. <br />
  5. 5. Crude oil(Contd..)<br />According to the a Bloomberg News survey, the US oil supplies probably declined for the first time in last three weeks on the increased demand from the refiners as they fast paced production. Inventories fell by 1.5 million in the seven days ended 3 Dec. from 359.7 million a week earlier, Gasoline stockpiles probably raised by 875,000 barrels from 210.2 million, the longest sequence of increases since August. Supplies of distillate fuel, a category that includes heating oil and diesel, probably fell 550,000 barrels from 158.1 million.<br />
  6. 6. Base metals.<br />How was the trading sentiment in the base metals today? <br />Copper gained consecutively for the sixth day within 1.3 percent of all time record high as investors seeking hedge against the inflating prices and declining currencies.<br />Copper for three-month delivery on the London Metal Exchange rose as much as 0.9 percent to $8,845 a metric ton, after falling as much as 0.6 percent earlier. The metal reached a record $8,966 a ton on Nov. 11.<br />The economic uncertainty in the Euro zone, rising inflation, falling inventories and depreciating currencies are the factors supporting the bull’s rally in the past few days.<br />
  7. 7. Base metals (Contd..)<br />The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, dropped as much as 0.3 percent, after gaining yesterday for the first time in four days.<br />According to the report of China Securities Journal, china may increase the borrowing costs by this weekend. This may add some pressure on the prices.<br />In LME Aluminum rose 0.8 percent, zinc gained 1.2 percent, lead advanced 0.6 percent, nickel climbed 0.6 percent. Tin increased 0.2 percent.<br />