Hot Commodities: Silver Crashes Under $19 As Precious Metals Continue To Bleed

Silver......

MCX Silver futures fell heavily today, nearing Rs 39000 per kg levels as the global prices crashed to fresh lows under $19 per ounce- a level not seen since August 2009. The commodities dropped in tune with sell off in gold, which exacerbated the pressure already built up on the white metal. The benchmark COMEX Silver futures are down by a massive 3% to 18.98 per ounce right now. Gold is also down to near three year low of $1249, down $26.10 per ounce on the day.

There has been a constant wall or worry in place for the precious metals in last few weeks with the meltdown seen mid April refusing to let go of investor sentiments. Both silver and gold crashed in the current week as ETF outflows accelerated and a rise in US dollar in global currency markets had a dampening effect on the commodity complex.

The holdings of the iShares Silver Trust- the world's largest silver-backed exchange traded fund slipped to near 9800 tonnes- around eight month low. A critical break under $20 per ounce level at the start of the week turned the sentiments around for silver and the metal melted today in what has been auguring as another death spell for the bullion counters.

The volatility in global stocks has not helped the precious metals much and the fact that Copper prices are lingering around two year lows is making it very difficult for silver to witness any bargain buying. The MCX Silver futures for July gave up nearly Rs 1300 per kg in first two hours of trade with an early break under 40k exposing the metal to virtually a limitless downside trade. The counter quotes at Rs 39685, down nearly Rs 1000 or 2.41% on the day with 4.11% increase in open interest.
Source by Commodity Insights

Gold Recovers In Intraday Moves

Gold........
MCX Gold futures edged higher today as global prices recovered from the strong sell off and neared $1290 per ounce levels. The European equities recorded some gains as China's central bank clarified about the acute liquidity crunch being faced by the world's second largest economy. COMEX Gold futures for August slipped near its two and half year low in morning but rebounded to trade at $1286.30, up $9.20 per ounce on the day.

US dollar slipped from its three-week high against the Euro and supported the yellow metal. The dollar had cruised after the US Fed's “taper” comments last week, sending stocks and commodities lower amid a volatile activity in world markets. However, the Minneapolis Fed President Narayana Kocherlakota eased investors today by stating Fed has not become more hawkish and upcoming economic data would be eyed for further clarity.

In a keenly awaited move, the US Federal Reserve indicated last week that it would begin to taper its bond-buying program later this year. The Fed's announcement prompted dramatic declines in US markets on Wednesday and Thursday and also helped catalyse significant drops in international equity markets on Thursday. Ben Bernanke, the Fed chief told a news conference that the Fed expects to 'moderate the monthly pace of purchases later this year'.

Chinese equities launched a massive intraday rally as the central bank officials alleviated the worries over latest credit crunch to some extent. These gains spilled over into European stocks too, which are trading with gains of around 1-1.5%. Gold plummeted to fresh two and half year lows in global markets last week. However, the losses in local markets were limited as the Indian rupee dropped to a fresh all time low mark around 60 against the US dollar. The MCX Gold futures for August are quoting at Rs 26743, up Rs 18 per 10 grams on the day. Prices have recovered from a low of Rs 26541 per 10 grams.
Source by Commodity Insights

Second Straight Day Of Slump In Lead

Lead.......
Battery material lead has slumped for the second straight day. The metal saw a decline of 1.29 percent in the opening ticks on MCX, giving very little chance for new sellers to enter in the market. The open interest in the contract has increased to 5705 contracts from last night open interest of 5514 contracts. So far 2845 kg of Lead has been traded.
MCX Lead contract was trading at Rs 118.25 per kg; this is a 26 day low for the metal in the exchange. The prices are expected to slip to Rs 115 levels if the psychological barrier of Rs 118 is broken.
LME three month Lead prices were at $ 1988 per tonne, as against $ 2002 per tonne on yesterday's close.
Source by Commodity Insights

Hot Commodities: MCX Gold Drops Well Under 27k

Gold.........

MCX Gold futures slipped in tune with their global counterparts as a volatile spell in global equities pushed the metal lower. The US dollar piled up further gains, nearing its three-week high against the Euro as the rally post US Fed's “taper” comments stayed in place for the greenback. The yellow metal was also hurt on an indication that highs around $1300 per ounce levels are failing to hold. The metal slipped nearly 20 dollars from these levels and currently trades at $1279.90, down $12.10 per ounce on the day.

Meanwhile, the global equities slipped sharply led by Chinese stocks. There are concerns over an acute liquidity crunch in the country after the short-term interbank interest rates hit record highs last week. Bulk of the stock indices in the region are down around 1-2% while the Chinese stocks have pared more than 5%. The commodity prices are down across the board as well with copper sliding near two year low.

In a keenly awaited move, the US Federal Reserve indicated last week that it would begin to taper its bond-buying program later this year. The Fed's announcement prompted dramatic declines in US markets on Wednesday and Thursday and also helped catalyse significant drops in international equity markets on Thursday. Ben Bernanke, the Fed chief told a news conference that the Fed expects to 'moderate the monthly pace of purchases later this year'.

Gold plummeted to fresh two and half year lows in global markets last week. However, the losses in local markets were limited as the Indian rupee dropped to a fresh all time low mark around 60 against the US dollar. The MCX Gold futures for August are quoting at Rs 26779, down Rs 341 or 1.26% on the day with around 7% increase in open interest. The Rupee is lingering around 59.50 per dollar mark.
Source by Commodity Insights

Gold Bounces Back; Silver Stays Weak

Gold........

Gold futures bounced back in the late Asia session today as the US dollar gave back the Fed led gains; however the white metal was unable to get back after yesterday massive beating. COMEX August bullion futures jumped up by more than $12 a ounce in the electronic session today after tearing down by almost $100 yesterday to $1275.4 the lowest of the session and the 2 ½ year low. MCX August gold futures are trading marginally higher as the weakening Rupee supports. August contract gold is trading up Rs 10 at Rs 26879 per 10 grams after falling to the low of Rs 26808 earlier in the session. COMEX July Silver futures are trading down 0.008 at $ 19.81 per ounce. Local silver futures on Multi Commodity Exchange broke below the crucial mark of Rs 41000 per kg down more than Rs 3000 in last 2 sessions. The rupee resumed lower at 59.74 per dollar as against the last closing level of 59.57 at the Interbank Foreign Exchange (Forex) Market. Meanwhile, the Indian benchmark BSE-30 share index, Sensex, recovered from initial losses and was quoting higher by 73 point at 18,799. The dollar edged lower Friday, easing further off its highs made Thursday but still holding some of its gains in the wake of signals that the Federal Reserve may trim its stimulus this year. In the early East Asia afternoon, the ICE dollar index— which tracks the U.S. currency against six rivals — sat at 81.764, down from 81.823 late Thursday in North America. The euro rebounded modestly to $1.3230 from $1.3221. The Japanese yen proved an exception to the dollar’s downward motion, with the U.S. currency rising to ¥97.75 from ¥97.38 late Thursday. The Japanese yen proved an exception to the dollar’s downward motion, with the U.S. currency rising to ¥97.75 from ¥97.38 late Thursday. Source by Commodity Insights

Nickel Expected To Extend Losses

Nickel.......

LME Nickel prices were seen extending their losses on the back of heightened profit booking after the China reported decline in manufacturing numbers. Nickel has been of the metals that has suffered losses of 19 percent this year. The rise of supplies in the world markets and drop in demand of stainless steel has pressured this metal. LME three month prices was trading at $ 13757 per tonne on Friday. MCX Nickel benchmark contract was trading at Rs 815.5 per kg, down 0.6 percent. The prices tested a high of Rs 821.4 per kg and a low of Rs 815.7 per kg. This month, China State Reserves Bureau decided to buy 60000 metric tonnes of Nickel in 2013 .This has brought some gains in Nickel at the beginning of the month. Although this is not a major quantity considering the heavy supplies that is unused in China and world over. Source by Commodity Insights

Copper Stands On Weak Ground

Copper.......

Copper

remains stranded by the disinterest of traders in buying the metal. The traders remained on a selling spree with price paring 0.25 percent in the opening trades on Indian MCX platform. This is a extended sell off continuing in the metals. Recovery in Indian Rupee from 59.97 levels last night can create some more ripples of pressure in the Copper. MCX Copper is trading at Rs 403.35 per kg and can move near Rs 400 in the trading session.

LME three month prices will be looking at finding supports at 20 month low levels. However, inventories will be a key trigger for the metal in today's session. The opening of European markets in few hours time will be watched out for. LME Copper was at $ 6828 per tonne, down $ 7 per tonne from yesterday.

Copper is finding some aid from the fact that there is still short term supply pressure in the markets. Supply outages at Grasberg and Utah copper mines have slashed off some of the surplus that was expected early in the year.

Source by Commodity Insights