Expectations of higher employment rate in US are salvaging Copper to a great extent. Markets seemed to forget the problems with Chinese demand and manufacturing numbers but were counting on better figures of jobs from the US. Since the decline of jobless claims last night, Copper is convalescing pretty fast. LME Copper three month delivery was trading at $ 7100 per tonne, up 3 percent from Thursday. Indian Copper futures for May expiry were trading at Rs 387.5 per kg, up 4.2 percent or Rs 15 per kg. Supports for the contract are at Rs 386 and 384 per kg while Resistance for the contract is at Rs 393 per kg.In currency markets, US Dollar was moving down against the Euro, helping the international traded commodities in the process. Metals become more attractive if Dollar declines. The US Dollar was trading at 1.3125 against the Euro, against 1.3061 last night. Indian Rupee was weak by 0.3 percent to 53.97 after the announcement of RBI policy. RBI came out with a hawkish monetary policy slashing the repo rates by 25 basis points to 7.25 percent. RBI governor, Mr D Subbarao, said that imported inflation is likely to be lower provided the exchange rate remains broadly stable. Indicators of corporate performance, industrial outlook and PMIs are pointing to a declining pricing power. On the other hand, food inflation is likely to be a source of upside pressure because of persisting supply imbalances. In China, General Administration of Customs estimated that the refined copper apparent consumption of Copper was 718700 metric tonnes during March 2013, down 13.33 percent year on year. This was largely due to falling imports and 60000 metric tonnes in exports made during the month. Copper smelters involvement in the copper concentrate processing trade using imported materials has helped digest some of the refined copper output. Other metals like stainless steel material Nickel was up by 1.3 percent to $ 15037 per tonne on LME platform. MCX Nickel was marching higher and had more than 3 percent gains under its belt when last checked at Rs 819.8 per kg. Source by Commodity Insights |
Friday, May 3, 2013
Expectations Of Higher Employment In US Salvages Copper
Gold Breaks Above Rs 27k, Fresh Buying Continues To Support
Gold......
broke above Rs 27000 per 10 grams level today as the global prices raced higher for a second session. Gold has cut back its losses after the FOMC statement and a much-awaited cut in interest rates from the ECB yesterday made gold bulls come back from the hiding with a vengeance. The metal added around 20 dollars on the day yesterday. The sentiments in today's trade are likely to be choppy with the all important US non farm payrolls due in the evening and Gold could witness some selling pressure on the higher levels. The metal currently quotes at $1474.50, up $6.90 per ounce on the day.
The European Central Bank decided to lower its benchmark interest rate by 25 basis points to 0.50% yesterday, very much as expected. However, since this was already factored in, Gold was sitting unmoved after the announcement. The Fed stated yesterday that information received since the Federal Open Market Committee met in March suggests that economic activity has been expanding at a moderate pace. Labor market conditions have shown some improvement in recent months, on balance, but the unemployment rate remains elevated.
Household spending and business fixed investment advanced, and the housing sector has strengthened further, but fiscal policy is restraining economic growth. Inflation has been running somewhat below the Committee's longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices. Longer-term inflation expectations have remained stable.
In fact, the Fed expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens. This took aside the calls for an early end to the quantitative easing regime.
On Wednesday, China's official purchasing managers' index (PMI), which mainly focuses on the state-owned enterprise sector, fell to 50.6 in April from 50.9 in March, indicating a slowdown in manufacturing activity that was led by a slump in new export orders. A reading above 50 indicates expansion in the manufacturing sector while a reading below 50 means that manufacturing activity shrank.
Gold had tumbled in a freakish manner a few days back. There were concerns that debt stricken European country Cyprus might have to sell gold holdings to raise finances. Traders fear that this would load up supplies in global markets in the short term. Massive unloading in Gold ETF's was also responsible for the worst crash in gold prices for three decades.
Gold corrected more than 40 dollars in the current week before the current upswing.
However, the US dollar has recorded good gains after plummeting to its two month low against the Euro and could see some further positive bias ahead of non-farm. The MCX Gold futures have recaptured Rs 27000 per 10 grams mark and are currently trading at Rs 27045, up Rs 131 per 10 grmas or nearly half a percent on the day. Fresh buying remains evident as open interest gains around 3% so far in the day.
MCX Gold futures
The European Central Bank decided to lower its benchmark interest rate by 25 basis points to 0.50% yesterday, very much as expected. However, since this was already factored in, Gold was sitting unmoved after the announcement. The Fed stated yesterday that information received since the Federal Open Market Committee met in March suggests that economic activity has been expanding at a moderate pace. Labor market conditions have shown some improvement in recent months, on balance, but the unemployment rate remains elevated.
Household spending and business fixed investment advanced, and the housing sector has strengthened further, but fiscal policy is restraining economic growth. Inflation has been running somewhat below the Committee's longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices. Longer-term inflation expectations have remained stable.
In fact, the Fed expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens. This took aside the calls for an early end to the quantitative easing regime.
On Wednesday, China's official purchasing managers' index (PMI), which mainly focuses on the state-owned enterprise sector, fell to 50.6 in April from 50.9 in March, indicating a slowdown in manufacturing activity that was led by a slump in new export orders. A reading above 50 indicates expansion in the manufacturing sector while a reading below 50 means that manufacturing activity shrank.
Gold had tumbled in a freakish manner a few days back. There were concerns that debt stricken European country Cyprus might have to sell gold holdings to raise finances. Traders fear that this would load up supplies in global markets in the short term. Massive unloading in Gold ETF's was also responsible for the worst crash in gold prices for three decades.
Gold corrected more than 40 dollars in the current week before the current upswing.
However, the US dollar has recorded good gains after plummeting to its two month low against the Euro and could see some further positive bias ahead of non-farm. The MCX Gold futures have recaptured Rs 27000 per 10 grams mark and are currently trading at Rs 27045, up Rs 131 per 10 grmas or nearly half a percent on the day. Fresh buying remains evident as open interest gains around 3% so far in the day.
Source by Commodity Insights
Thursday, May 2, 2013
Aluminium Inventories Increase 10825 Tonnes From Wednesday
Aluminium ........
Aluminium inventories appreciated by 10825 tonnes to 5163650 tonnes
compared to last night the official data from London Metal Exchange
revealed. Aluminium inventories are already at all time highs and the
rampant rise is causing markets to destabilize. China, which is the key
market of Aluminium, is jostling with rise of production levels and
these supplies are getting transferred to LME and Shanghai warehouses.
The data from Shanghai futures exchange showed that the on warrants increased by 1367 tonnes to 260835 tonnes. Rise in on-warrants is a sign of slower demand and stocks to be kept in warehouses. Since the beginning of this year on-warrants in Shanghai warehouses has gained by 49.5 percent.
LME three month Aluminium prices were trading at $ 1838 per tonne on Thursday, up by $ 10 per tonne from last night. MCX Aluminium futures for May expiry were trading at Rs 97.9 per kg, up 0.72 percent. The prices tested a high of Rs 98.5 and a low of Rs 97.8 per kg so far in the day. Aluminium is at 31 month low on MCX.
Source by Commodity Insights
Aluminium inventories appreciated by 10825 tonnes to 5163650 tonnes
compared to last night the official data from London Metal Exchange
revealed. Aluminium inventories are already at all time highs and the
rampant rise is causing markets to destabilize. China, which is the key
market of Aluminium, is jostling with rise of production levels and
these supplies are getting transferred to LME and Shanghai warehouses. The data from Shanghai futures exchange showed that the on warrants increased by 1367 tonnes to 260835 tonnes. Rise in on-warrants is a sign of slower demand and stocks to be kept in warehouses. Since the beginning of this year on-warrants in Shanghai warehouses has gained by 49.5 percent.
LME three month Aluminium prices were trading at $ 1838 per tonne on Thursday, up by $ 10 per tonne from last night. MCX Aluminium futures for May expiry were trading at Rs 97.9 per kg, up 0.72 percent. The prices tested a high of Rs 98.5 and a low of Rs 97.8 per kg so far in the day. Aluminium is at 31 month low on MCX.
Source by Commodity Insights
Hot Commodities: Indian Nickel Futures At 35 Month Lows
Nickel.....
Indian
Nickel futures were trying to recover from a position not seen in more
then three years. The prices dipped to a 35 month lows on Thursday and
tested a low of Rs 789.8 per kg in MCX platform. The worrying factor is
that even after such carnage in Nickel the prices are not in a oversold
position.
On intraday charts the sell off can move the metal towards Rs 736 per kg. The weekly and monthly charts are all the more supportive towards the sellers. Open interest in Nickel May expiry contract has already crossed the position of Wednesday. Total open interest was 25504 contracts compared to 24823 contracts.
MCX Nickel May expiry contract was trading at Rs 796.7 per kg, up 0.28 percent. The prices tested a high of Rs 799.9 per kg and a low of Rs 789.8 per kg. On LME, Nickel three month prices were trading at $ 14848 per tonne, down $ 202 per tonne.
Source by Commodity Insights
Indian
Nickel futures were trying to recover from a position not seen in more
then three years. The prices dipped to a 35 month lows on Thursday and
tested a low of Rs 789.8 per kg in MCX platform. The worrying factor is
that even after such carnage in Nickel the prices are not in a oversold
position. On intraday charts the sell off can move the metal towards Rs 736 per kg. The weekly and monthly charts are all the more supportive towards the sellers. Open interest in Nickel May expiry contract has already crossed the position of Wednesday. Total open interest was 25504 contracts compared to 24823 contracts.
MCX Nickel May expiry contract was trading at Rs 796.7 per kg, up 0.28 percent. The prices tested a high of Rs 799.9 per kg and a low of Rs 789.8 per kg. On LME, Nickel three month prices were trading at $ 14848 per tonne, down $ 202 per tonne.
Source by Commodity Insights
Gold Consolidates Above $1450, Some Bargain Buying Evident
Gold......
MCX Gold futures went up in Asia today as buying interest returned
after a massive slide in the last session. Gold slipped for a third
session yesterday as traders locked further gains after recent array of
gains ahead of the US FOMC meet. COMEX futures had edged up above $1470
per ounce earlier in the week but failed to hold on above the level as
commodities witnessed yet another correction. However, some buying is
emerging now as investors get over the latest FOMC statement and wait
for the European banks turn today. COMEX Gold is quoting at $1454.40, up
$8.20 per ounce on the day.
The Fed stated yesterday that information received since the Federal Open Market Committee met in March suggests that economic activity has been expanding at a moderate pace. Labor market conditions have shown some improvement in recent months, on balance, but the unemployment rate remains elevated.
Household spending and business fixed investment advanced, and the housing sector has strengthened further, but fiscal policy is restraining economic growth. Inflation has been running somewhat below the Committee's longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices. Longer-term inflation expectations have remained stable.
In fact, the Fed expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens. This took aside the calls for an early end to the quantitative easing regime.
China's manufacturing sector slowed in April according to PMI data issued Thursday. On Wednesday, China's official purchasing managers' index (PMI), which mainly focuses on the state-owned enterprise sector, fell to 50.6 in April from 50.9 in March, indicating a slowdown in manufacturing activity that was led by a slump in new export orders. A reading above 50 indicates expansion in the manufacturing sector while a reading below 50 means that manufacturing activity shrank. Manufacturing also slowed in India, shrunk in Australia and rose in South Korea and Indonesia.
Gold had tumbled in a freakish manner a few days back. There were concerns that debt stricken European country Cyprus might have to sell gold holdings to raise finances. Traders fear that this would load up supplies in global markets in the short term. Massive unloading in Gold ETF's was also responsible for the worst crash in gold prices for three decades.
Prices have corrected more than 40 dollars in the current week and could edge up modestly now. The US dollar slipped to its two month low against the Euro yesterday though some moderate gains have emerged in the currency today. The greenback is quoting at 1.3161 against the Euro right now. MCX Gold futures broke under Rs 27000 per 10 grams this week and closed with heavy losses yesterday. The counter quotes at Rs 26599, up Rs 59 per 10 grams on the day with a 3% increase in open interest. Prices have dropped back from highs above Rs 26600 levels.
Source by Commodity Insights
MCX Gold futures went up in Asia today as buying interest returned
after a massive slide in the last session. Gold slipped for a third
session yesterday as traders locked further gains after recent array of
gains ahead of the US FOMC meet. COMEX futures had edged up above $1470
per ounce earlier in the week but failed to hold on above the level as
commodities witnessed yet another correction. However, some buying is
emerging now as investors get over the latest FOMC statement and wait
for the European banks turn today. COMEX Gold is quoting at $1454.40, up
$8.20 per ounce on the day.The Fed stated yesterday that information received since the Federal Open Market Committee met in March suggests that economic activity has been expanding at a moderate pace. Labor market conditions have shown some improvement in recent months, on balance, but the unemployment rate remains elevated.
Household spending and business fixed investment advanced, and the housing sector has strengthened further, but fiscal policy is restraining economic growth. Inflation has been running somewhat below the Committee's longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices. Longer-term inflation expectations have remained stable.
In fact, the Fed expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens. This took aside the calls for an early end to the quantitative easing regime.
China's manufacturing sector slowed in April according to PMI data issued Thursday. On Wednesday, China's official purchasing managers' index (PMI), which mainly focuses on the state-owned enterprise sector, fell to 50.6 in April from 50.9 in March, indicating a slowdown in manufacturing activity that was led by a slump in new export orders. A reading above 50 indicates expansion in the manufacturing sector while a reading below 50 means that manufacturing activity shrank. Manufacturing also slowed in India, shrunk in Australia and rose in South Korea and Indonesia.
Gold had tumbled in a freakish manner a few days back. There were concerns that debt stricken European country Cyprus might have to sell gold holdings to raise finances. Traders fear that this would load up supplies in global markets in the short term. Massive unloading in Gold ETF's was also responsible for the worst crash in gold prices for three decades.
Prices have corrected more than 40 dollars in the current week and could edge up modestly now. The US dollar slipped to its two month low against the Euro yesterday though some moderate gains have emerged in the currency today. The greenback is quoting at 1.3161 against the Euro right now. MCX Gold futures broke under Rs 27000 per 10 grams this week and closed with heavy losses yesterday. The counter quotes at Rs 26599, up Rs 59 per 10 grams on the day with a 3% increase in open interest. Prices have dropped back from highs above Rs 26600 levels.
Source by Commodity Insights
Commodities Buzz: US Crude Inventories At All Time Highs
Oil......
US
crude oil inventories soared to an all-time record last week as imports
increased, according to the latest weekly data from the Energy
Information Administration. Crude inventories went up by 6.7 million
barrels to 395.28 million barrels in the week to April 26, compared with
analysts' expectations for a rise of just 1 million barrels. Crude
stocks reached their highest level in EIA's historical data going back
to 1982.
U.S. crude imports rose by 602,000 barrels per day (bpd) to 8.12 million bpd last week, EIA said. The biggest regional crude build occurred in the Gulf Coast region where stocks rose by 7.7 million barrels, the largest weekly increase there since July of 2010.
Refined product inventories were mixed though. U.S. gasoline stocks slipped by 1.82 million barrels, while Distillate fuels, which include diesel and heating oil, edged up by 474,000 barrels.
Source by Commodity Insights
US
crude oil inventories soared to an all-time record last week as imports
increased, according to the latest weekly data from the Energy
Information Administration. Crude inventories went up by 6.7 million
barrels to 395.28 million barrels in the week to April 26, compared with
analysts' expectations for a rise of just 1 million barrels. Crude
stocks reached their highest level in EIA's historical data going back
to 1982.U.S. crude imports rose by 602,000 barrels per day (bpd) to 8.12 million bpd last week, EIA said. The biggest regional crude build occurred in the Gulf Coast region where stocks rose by 7.7 million barrels, the largest weekly increase there since July of 2010.
Refined product inventories were mixed though. U.S. gasoline stocks slipped by 1.82 million barrels, while Distillate fuels, which include diesel and heating oil, edged up by 474,000 barrels.
Source by Commodity Insights
Gold Trying To Inch Up After Latest Losing Spree
Gold.....
MCX
Gold futures are trying to inch up today as buying interest returns
after a massive slide in the last session. Gold slipped for a third
session yesterday as traders locked further gains after recent array of
gains ahead of the US FOMC meet. COMEX futures had edged up above $1470
per ounce earlier in the week but failed to hold on above the level as
commodities witnessed yet another correction. However, some buying is
emerging now as investors get over the latest FOMC statement and wait
for the European banks turn today. COMEX Gold is quoting at $1452.60, up
$6.40 per ounce on the day.
The Fed stated yesterday that information received since the Federal Open Market Committee met in March suggests that economic activity has been expanding at a moderate pace. Labor market conditions have shown some improvement in recent months, on balance, but the unemployment rate remains elevated.
Household spending and business fixed investment advanced, and the housing sector has strengthened further, but fiscal policy is restraining economic growth. Inflation has been running somewhat below the Committee's longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices. Longer-term inflation expectations have remained stable.
In fact, the Fed expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens. This took aside the calls for an early end to the quantitative easing regime.
Gold had tumbled in a freakish manner a few days back. There were concerns that debt stricken European country Cyprus might have to sell gold holdings to raise finances. Traders fear that this would load up supplies in global markets in the short term. Massive unloading in Gold ETF's was also responsible for the worst crash in gold prices for three decades.
However, the demand-supply scenario remains in favor of the metal. Total recycled gold supplies went up nearly 34% to 1,625 tonnes in CY 2012 from 1,212 tonnes in CY 2008 due to the massive spurt in prices last year. This source of inflow is surely likely to see moderation this year given the 20% drop witnessed in prices from year to date.
Prices have corrected more than 40 dollars in the current week and could edge up modestly now. The US dollar slipped to its two month low against the Euro yesterday and is quoting just under 1.3200 right now. This should support the yellow metal. MCX Gold futures broke under Rs 27000 per 10 grams this week and closed with heavy losses yesterday. The counter quotes at Rs 26554, up Rs 14 per 10 grams on the day with a marginal increase in open interest.
Source by Commodity Insights
MCX
Gold futures are trying to inch up today as buying interest returns
after a massive slide in the last session. Gold slipped for a third
session yesterday as traders locked further gains after recent array of
gains ahead of the US FOMC meet. COMEX futures had edged up above $1470
per ounce earlier in the week but failed to hold on above the level as
commodities witnessed yet another correction. However, some buying is
emerging now as investors get over the latest FOMC statement and wait
for the European banks turn today. COMEX Gold is quoting at $1452.60, up
$6.40 per ounce on the day.The Fed stated yesterday that information received since the Federal Open Market Committee met in March suggests that economic activity has been expanding at a moderate pace. Labor market conditions have shown some improvement in recent months, on balance, but the unemployment rate remains elevated.
Household spending and business fixed investment advanced, and the housing sector has strengthened further, but fiscal policy is restraining economic growth. Inflation has been running somewhat below the Committee's longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices. Longer-term inflation expectations have remained stable.
In fact, the Fed expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens. This took aside the calls for an early end to the quantitative easing regime.
Gold had tumbled in a freakish manner a few days back. There were concerns that debt stricken European country Cyprus might have to sell gold holdings to raise finances. Traders fear that this would load up supplies in global markets in the short term. Massive unloading in Gold ETF's was also responsible for the worst crash in gold prices for three decades.
However, the demand-supply scenario remains in favor of the metal. Total recycled gold supplies went up nearly 34% to 1,625 tonnes in CY 2012 from 1,212 tonnes in CY 2008 due to the massive spurt in prices last year. This source of inflow is surely likely to see moderation this year given the 20% drop witnessed in prices from year to date.
Prices have corrected more than 40 dollars in the current week and could edge up modestly now. The US dollar slipped to its two month low against the Euro yesterday and is quoting just under 1.3200 right now. This should support the yellow metal. MCX Gold futures broke under Rs 27000 per 10 grams this week and closed with heavy losses yesterday. The counter quotes at Rs 26554, up Rs 14 per 10 grams on the day with a marginal increase in open interest.
Source by Commodity Insights
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