Copper Trades Dull After Latest Gains

Copper........

The opening of European markets hasn't brought any significant change in the price of Copper. The markets remained in a lackluster trading zone after a good elevation seen on Monday. The LME three month benchmark prices for Copper was trading at $ 7369 per tonne, compared to $ 7365 per tonne on Monday. Markets are also keeping a close eye on the inventories data before the next set of moves.
On MCX, opening for the metal was in green but prices have extended the rally as the day progressed. The June expiry contract was seen trading at Rs 419.4 per kg, shy away from day's high of Rs 419.8 per kg. Further gains can take prices towards Rs 422 per kg. Supports for the contract are at Rs 414-415 per kg.
Source by Commodity Insights

Copper Gains Ground On LME

Copper........
Copper futures kept generating more gains although at a much slower pace than last night. There was a minor uptick after the inventories of this red metal showed a drop of 3150 tonnes to 614075 tonnes. The prices in early Asian trades were lackluster with limited energy level but after the announcement of stocks some bounce was noted. Rise in stocks and fall in demand has been one of the testing points for Copper.
Last month, International Copper Study Group (ICSG) stated in its recent update that the refined Copper markets showed a production surplus of 40000 tonnes in February 2013, this was due to low refined metal demand.
Further after making seasonal adjustments refined Copper markets were in production surplus of 46000 tonnes. The refined copper balance for the first two months of 2013, including revisions to data previously presented, indicates a production surplus of 127000 tonnes. This compares with a production deficit of 170000 tonnes.
LME three month benchmark prices for Copper was trading at $ 7400 per tonne, compared to $ 7365 per tonne on Monday. Markets are also keeping a close eye on the moves of Dollar that showed some decline against the Euro.
In currencies, greenback was trading at 1.3085 against the Euro, up 14 pips. Rupee gained ground against the Dollar and was at 56.45, down 0.55 percent.
On MCX, opening for the metal was in green but prices have extended the rally as the day progressed. The June expiry contract was seen trading at Rs 418 per kg, away from day's high of Rs 419.8 per kg. Further gains can take prices towards Rs 422 per kg. Supports for the contract are at
Rs 414-415 per kg.
Source by Commodity Insights

Gold Drops 1% As Equities Rise

Gold..........

Gold futures fell further 1% with the commodity again below the USD 1,400 mark in today's trading session on strong equities market. Traders are watching the U.S trade balance report release later today. The move come a day after gold prices reclaimed the $1,400-an-ounce level, helped by a decline in the U.S. dollar on data showing a contraction in U.S. manufacturing in May. The most active August Gold on COMEX currently quotes lower at USD 1,398.55, down USD 13.35 or 0.95% from last close, after hitting the high of USD1,414.55 per ounce. The Euro currency was trading slightly higher at EUR1.31, up 0.12% from last close. U.S. stock futures inched higher on Tuesday, with support coming from gains for Europe and Japan markets. Investors will be eyeing a couple of Federal Reserve speakers for direction, while trade data and Core Logic house prices are also on tap. COMEX Silver July futures was trading at USD 22.445 per ounce, down 1.21% from Monday close. The Markit/CIPS UK construction PMI May data indicated a moderate rebound in both output levels and intakes of new work across the UK construction sector, largely driven by improvements in the residential building sub-sector. The Euro zone Producer Price Index slid 0.2% in April, compared with the 0.6% rise in March, Eurostat reported on Tuesday. Market consensus pointed to 0.3% growth.
Indian gold futures tumbled lead by weak global markets and strong rupee against the greenback. Indian rupee ended the session at Rs 56.44, down 0.58%. Rupee appreciated today, after falling to Rs 56.82 mark, a one year low level for the local currency. MCX Gold for the August delivery quotes lower at Rs 27,100, down Rs 237 or 0.87% from last close. Technically, the counter is having strong support at the levels Rs 26,950, Rs 26,850 while resistance is at Rs 27,400, RS 27,480 levels. July Silver was quoting lower at Rs 43,811, down Rs 600 or 1.36% from last close.
Source by Commodity Insights

Gold Extends Early Gains

Gold......

Gold futures traded with marginal gains on weak greenback ahead of the U.S PMI data release today. Gold futures fell 5.4% in May, in part as gains in equities drew investors away from safe-haven assets such gold. May's decline marked the seventh monthly drop for gold prices in the last eight months. The euro zone manufacturing PMI released today indicated downturn eased for the first time in four months in May. Business conditions still deteriorated overall, however, with the current downturn extended to a twenty-second month. PMIs for all of the nations covered by the survey signaled weaker rates of contraction in May. The German PMI signaled the slowest rate of contraction overall and moved close to the stabilization level as output and new orders both rose for the first time in three months. Downturns in the Netherlands and Austria were also only moderate. COMEX Gold futures for the August delivery is quoting at $1,394.75, up 1.75 or 0.13% from last close, after moving in the range of $1,388.55 and 1,401.15 per ounce. July Silver futures quoting up at $22.408, up 0.165 or 0.74% from last close. Euro was trading higher at $1.3016, up 0.0020 or 0.16%from last close.
Local gold prices gained on strong physical demand tracking the firm global market and weak rupee. The latest WGC report indicates that strong physical demand expecting from India and China in the second quarter. MCX July Gold quotes higher at Rs 26,975, up Rs 164, after hitting the high of Rs 26,780 per 10 grams and may face resistance at Rs 27,200 and support at Rs 26,700 level. MCX Silver futures are trading with gain of Rs 500 at Rs 44,000 per 1 kg, after hitting high of Rs 44,061 per 1 kg. Rupee value depreciated further against the greenback with the currency closed the session at Rs 56.82, up 0.54% from last close.
Source by Commodity Insights

Oil Slides Further On China Data

Oil........

Crude oil futures slid further in the late Asia session today with the sentiments hurt by weak china data, soft equity markets.
Crude for July delivery fell 27 cents, or 0.29%, to $91.70 a barrel on the New York Mercantile Exchange. On Friday, it plunged 2.1% to settle the week at $91.65 a barrel. On the week, Nymex oil futures lost 2.35%, the second consecutive weekly decline.
The ICE dollar index, which measures the greenback against six other global currencies, rose to 83.237 from 82.294 on Friday. The index finished May higher by nearly 2%.
On Monday, the final version of HSBC’s China manufacturing Purchasing Managers’ Index showed activity in the sector contracted in May. The index fell to 49.2 from a preliminary reading of 49.6. The latest reading was also more than a point off from April’s 50.4. A result below 50 signals contraction.
HSBC’s report contrasted with China’s official PMI, released Saturday, which rose to 50.8 in May from 50.6 in April. Monday’s slip in oil prices added to the 1.8% drop on Friday, when news about record-high European unemployment and a decline in U.S. consumer spending in April dented energy-demand prospects.
The oil market later Monday is due to receive May PMI reports for Germany, France, Italy, and the overall euro zone. Ahead of the reports, European Central Bank President Mario Draghi said Monday that the euro area’s economic situation “remains challenging,” and the ECB doesn’t expect much of an improvement before the end of this year.
The ECB on Thursday is expected to yet again downwardly revise its economic-activity forecast for this year. It currently expects a contraction of 0.5%.
OPEC oil ministers at a summit in Vienna agreed, as expected, to keep the output target at 30 million barrels a day for the rest of the year, with many members expressing satisfaction with current price levels of about $100 a barrel for Brent crude.
MCX June crude oil futures are trading down nearly Rs 15 at Rs 5214 per barrel. The counter should face a stiff resistance near Rs 5230 levels today.
Source by Commodity Insights

Oil Declines In Tandem With Equities

Oil........

Crude oil futures declined in the Asia electronic session today falling in tandem with the weakness in the Asian equities after Dow Jones Industrial Average sank more than 200 points on Friday.
Equities and crude oil have traded in tandem in recent weeks, on the belief share prices act as a proxy for economic sentiment and are a bellwether for oil demand.
Japanese shares tumbled as a firm yen prompted selling in exporters while, Chinese stocks rose modestly in choppy trade Monday as separate data from the government and HSBC painted a contrasting picture of manufacturing activity in the country.
The Shanghai Composite Index rose 0.4%, while Hong Kong’s Hang Seng Index also gained 0.4%, with both benchmarks overcoming early losses. The gains came after a Chinese government-sponsored survey on manufacturing activity in the country, released on Saturday, rose to 50.8 in May from 50.6 in April, indicating an improvement in business conditions at the nation’s factories.
Meanwhile, the Nikkei Stock Average tumbled 2.2% by the midday break in Tokyo. The losses came after Japanese stocks ended May with a mild loss following gains in each of the previous nine months. Japan’s hard fall Monday came after Dow Jones Industrial Average sank more than 200 points on Friday, and as U.S. dollar stayed under the 101-yen level in Asia on Monday.
Light sweet crude oil futures for July delivery is trading down 5 cents at $ 91.92 per barrel on the New York Mercantile Exchange. On Friday, it plunged 2.1% to settle the week at $91.65 a barrel. On the week, Nymex oil futures lost 2.35%, the second consecutive weekly decline.
On Friday, the Organization of the Petroleum Exporting Countries decided to leave global output quotas unchanged at 30 million barrels per day for the third consecutive meeting, as widely expected. Ministers from the 12-member group will next gather on December 4.
In the week ahead, investors will be awaiting the release of Friday’s closely watched report on U.S. nonfarm payrolls for further hints regarding the direction of U.S. monetary policy.
MCX June crude futures may open today’s session near Rs 5230 levels with support around Rs 5200-190 levels and resistance near Rs 5255 levels.
Source by Commodity Insights

Gold Inches Up; Eyes On NPF

Gold........
Gold inched up in the Asia electronic session today with the nonfarm payrolls data being the crucial trend setter for the commodities and equities to be watched this week.
Gold futures for August delivery are trading up $2 at $1395 per ounce on the Comex division of the New York Mercantile Exchange. On Friday, it tumbled 1.75% on Friday to settle the week at $1,387.35 a troy ounce, little changed on the week. It may find support near $1350 levels and resistance near $1425 levels.
Investors will be awaiting the release of Friday’s closely watched report on U.S. nonfarm payrolls for further hints regarding the direction of U.S. monetary policy. Any improvement in the U.S. economy could scale back expectations for further easing from the Federal Reserve, weighing on dollar-denominated commodities.
Gold futures came under heavy selling pressure on Friday, after upbeat economic data added to speculation over an earlier-than-expected end to the Federal Reserve’s asset purchase program. Gold prices turned lower after the University of Michigan said its consumer sentiment index rose to 84.5 in May, its highest level since July 2007, from76.4 in April and up from a preliminary estimate of 83.7.
A separate report showed that manufacturing activity in the Chicago-area improved at the fastest pace in over a year last month. The robust data bolstered expectations that the Federal Reserve could begin to scale back its $85 billion a month asset purchase program this year.
Data over the weekend showed that manufacturing activity in China improved modestly in May. The state-affiliated China Federation of Logistics and Purchasing said on Saturday that its manufacturing activity index inched up to 50.8 from April’s reading of 50.6.
MCX August gold futures may open today’s session near Rs 27000 levels with resistance near Rs 27100 levels and support near Rs 26900 levels.
Source by Commodity Insights