Gold futures prices holds above $1,300 ahead of Fed policy meeting

Gold futures prices holds above $1,300 ahead of Fed policy meeting

Gold futures prices higher in the given range trade on Tuesday, since investors remained cautious ahead of the two-day Federal Reserve policy meeting  will begin at end of day.

Spot gold was little changed just above $ 1,300 an ounce today, with the support of geopolitical tensions in the Middle East and Ukraine, with investors also focusing on employment data from the United States.

The Federal Reserve begins its two-day meeting later Tuesday, with market watching for clues as to when the central bank of the United States start to increase interest rates markets. The Fed on Wednesday draw up a declaration at the end of the meeting.

Spot gold remained stable in $ 1,303.70 an ounce, after dropping by 0.3 percent in the previous session.

The US Exchange, gold  December futures rose 0.27%, or $ 3.50, to trade at $ 1309.30 a troy ounce during European morning hours. Prices took place in a narrow range between $ 1305.90 and $ 1309.50.

Gold ended Monday’s session up 0.04%, or 50 cents, to settle at $ 1305.80 an ounce.

Last week, gold decreased 1% back under US $ 1,300 an ounce whereas silver stuck to his’ leveraged gold’tendency declining 2.3%, but still above the level  $20/ Oz  more seen ETF Securities Ltd (ETFs), said in a weekly report.

ETFS report further stated that China’s gold demand downhill by 19% in the first semester of 2014 also weighed on market sentiments.

Traders were looking forward to the policy statement by the Fed on Wednesday. The central bank is likely to stick to its timetable to cut its monthly bond purchases another $ 10 billion to a total of $ 25 billion a month.

Meanwhile, flash estimate Wednesday for economic growth and second trimester of Friday The US July jobs report is expected to denote both that an economic recovery continues.

Earlier this month Fed President Janet Yellen said rates could rise sooner if retrieval in the labor market remained.

Notes of robust economic recovery could result in the Fed to raise rates sooner than expected. The highest rates could stimulate investors to cash withdrawals from not accruing interests assets such as gold.

Bullion, viewed as a safe haven asset, have benefited from the tensions between the West and Russia. The US and European leaders agreed on Monday to impose broader sanctions in the financial, defense and energy from Russia.

In physical markets, demand underwent as buyers were waiting on the sidelines for a possible price drop.

 

For latest commodity market tips, MCX tips, news & updates  with 100McxTips Commodity Trading Advisory, follow us on Twitter and Like on Facebook

Posted in Commodity, MCX, Stocks Market

Bullion industry experts said: Gold smuggling rise again if gold import duty not lowered

Bullion industry experts said: Gold smuggling rise again if gold import duty not lowered

Bullion industry experts have expressed concerns that the government’s decision not to lower import duties on gold from the current 10 percent may result in to activities the gray market.

Industry experts said the move could fuel smuggling of the precious metal. Bullion trade is worrying rise in smuggling, even as jewelry industry is unable to get any enough bars to make the jewelry.

“This govt  decision not to lower the import curbs will create the problem of supply of raw materials. The availability of raw material is going to go uncontrolled and the premium on gold back up. It will also give rise to smuggling activities,” All India Gems and Jewellery Federation (GJF) chairman Haresh Soni told PTI here.

Premiums gold is currently ruling at $ 06.10 an ounce in the domestic market, he said.

“Such negative reports affect the market and premiums gold going to go up once,” Mr Soni said.

He said the growing activities in the gray market will cost loss of income for the government.

“Reflecting the view, vice president of the Mumbai Jewellers Association Kumar Jain said the domestic jewelery sector, which provides direct and indirect job to about two crore people are struggling and production has suffered due to government policies.”

“The Council of Gem and Jewellery Export Promotion President Vipul Shah said that industry players have been demanding lowering import duties to two percent that has long been controlled CAD ago.”

The hike of existing import duty of 10 per cent in the precious metal was with backspin of the import surge witnessed during the start of 2013 The Government will was interested in curbing its growing current account deficit (CAD).

The MOF on July 25, informed Parliament that gold smuggling cases had risen to 2,441 in 2013-14. 2011-12 2012-13 and the number of such cases is at 869 and 500, respectively.

There were claims to reduce import duties on gold to 2 percent. The industry of national jewelry is dispirited because of rejection of the Government of its claim. They are of the view that, since the CAD has been Government Controlled should be considered lowering the import duty.

“The country will not lose a lot by reducing the import duty on gold and bring it at par with the price of gold in other countries. Only required gold for jewelry making will get imported. Ya, extensive global jewelry demand has seen a slowdown owing to the lower prices. Why is the government looking forward to anotherHoly Hour?”, said 100McxTips experts.

For latest commodity market tips, MCX tips, news & updates  with 100McxTips Commodity Trading Advisory, follow us on Twitter and Like on Facebook

Posted in Commodity, MCX, Stocks Market

Gold prices rose slightly in early trade as geopolitical tensions in the Ukraine and Middle East

Gold prices rose slightly in early trade as geopolitical tensions in the Ukraine and Middle East

Gold futures prices rose slightly in early trade on Friday, with the help of the tensions in Ukraine and the Middle East.

At the Multi Commodity Exchange, GOLD October futures contract was trading at Rs 27845 up Rs 78, or 0.28 percent. Gold in morning session touched an intraday high of Rs 27848 and an intraday low of Rs 27791. So far 123 contracts have been traded on MCX exchange.

While, in the mean timn on MCX Gold  August futures contract was trading at Rs 27662 up Rs 36, or 0.13 percent. Price hit an intraday high of Rs 27693 and an intraday low of Rs 27651. So far 875 contracts have been traded.

On U.S. Comex Exchange, Gold  August futures contract traded at $1,292.60 a troy ounce, up 0.14%, after hitting an overnight session an intraday low of $1,288.00 and off an intraday  high of $1,305.60.

The United States believes, Russia is triggering artillery across the border in military posts of Ukraine, the State Department said on Thursday, a statement that Moscow is playing a more direct part in conflict Ukraine.

Also on the minds of traders is the cycle of violence in the Middle East since Israel and Gaza to Iraq and Syria.

 

For latest commodity market tips, MCX tips, news & updates  with 100McxTips Commodity Trading Advisory, follow us on Twitter and Like on Facebook

Posted in Commodity, MCX

Natural gas futures prices soar on rising supply report

Natural gas futures prices soar on rising supply report

Natural gas prices soar on Thursday after data showed United States reserves rose less than expected last week. The Energy Information Administration of the United States (EIA) reported Thursday morning that American natural gas inventories rose by 90 billion cubic feet for the week ended July 18.

NYMEX natural gas August futures delivery traded at $3.832 per million BTUs during U.S. trading, up 1.85%. The commodity hit a session intraday  high of $3.883 and a intraday low of $3.747.

NG August futures contract settled down 0.27% on Wednesday to end at $3.762 per million BTUs.

In the same week a last year, the reserves increased by 41 billion cubic feet. Reservations are 20.2% below their levels of a year ago and 23.5% below the five year average.

It is expected that the colder to continue in the Midwest and Northeast, and more of the same temperatures are expected next week. It is expected that the demand for cooling to be low, as a resultand that it should help to build inventories for both winter and support the price of lowest natural gas.

The EIA reported that inventories in the United States working natural gas amounted to 2.22 trillion cubic feet, some 683 billion cubic feet below the five-year average of 2.9 trillion cubic feet. Working gas in storage totaled 2780000 million cubic feet in the same period a year ago. Inventories of natural gas continue to rise, but remain well below the underside of the range of five years.

Natural gas prices have succumbed to heavy selling pressure in the last sessions as a shot cooler temperatures moved through the Midwest and Northeast regions densely populated.

On demand for natural gas tends to move in the summer based on the use of heat and air conditioning.

At the Multi Commodity Exchange, Natural gas July futures  prices rose 2.07 per cent to Rs 231.40.

For latest commodity market tips, MCX tips, news & updates  with 100McxTips Commodity Trading Advisory, follow us on Twitter and Like on Facebook

Posted in Commodity, MCX

Gold holds near $1,300, physical demand eyed ongoing concerns in Ukraine and Gaza

Gold holds near $1,300, physical demand eyed ongoing concerns in Ukraine and Gaza

Gold prices remained stable on Wednesday in Asia after soaking overnight, and seemed likely to hold above $ 1,300 an ounce in the short term because of ongoing concerns about crises in Ukraine and Gaza.

But the weak physical demand in Asia over the summer period in quiet season could undermine support for any price rises and even stop providing a floor if prices were falling.

Spot gold little changed at $ 1,306.61 an ounce by 0627 GMT, having lost 0.4 percent in the previous session, under pressure from stronger equities.

In the USA Exchange, gold for August futures delivery fell by 0.08% or $ 1.00, to trade at $ 1307.70 a troy ounce during early European morning hours. Prices took place in a narrow range between $ 1305.60 and 1309.30.

Futures were likely to find support at $ 1298.10, the session low of July 17 and resistance at $ 1,325.50, the session high of July 18.

A Reuters survey on Tuesday showed that analysts and traders expected that the prices of gold to average $ 1,277 for the entire year as return monetary policy to normal and demand from Asia is weak.

Demand on Asia, home to major buyers from China and India, has down sharply after heavy purchases last year, when the prices of gold plummeted 28 percent.

Apart from seasonality and higher than normal in 2013 purchases, the possibility of a further decline in prices is also maintaining buyers away, traders said.

Bullion, however, currently receiving well supported by geopolitical tensions in the world. The metal is seen as an alternative to riskier assets such as equities investment.

Gold remained supported as tensions between Russia and the West remained high a result of the bombing of a passenger airplane Malaysia in eastern Ukraine last week, while Israel’s ground offensive in Gaza was also targeted.

SPDR Gold Trust said its holdings rose 1.5 tonnes to 804.84 tonnes on Tuesday to demand safe haven assets.

Gold futures prices on MCX were also trading with marginal gains on Wednesday early morning trade session.  MCX Gold October futures contract was trading at Rs 28065 up Rs 94, or 0.34 percent. Gold touched a session high of Rs 28065 and a session low of Rs 27991.

 

For latest Gold market tips, MCX gold tips, news & updates  with 100McxTips Commodity Trading Advisory, follow us on Twitter and Like on Facebook

Posted in Commodity, MCX, Stocks Market

Gold futures prices slip lower on profit-taking, safe-haven bids support after Malaysian airliner crash

Gold futures prices slip lower on profit-taking, safe-haven bids support after Malaysian airliner crash

Gold futures edge fell lower on Friday, since the operators locked-in profits wake of the recent upward trend in the precious metal due to increasing safe-haven demand in the midst of geopolitical tensions in Ukraine and the Middle East. But the metal is further supported by a wave of risk aversion after a Malaysian aircraft was shot down in eastern Ukraine, killing nearly 300 people.

At the US Comex Exchange, gold for August futures contract was quoted at $ 1,312.60 a troy ounce during European afternoon trade, down 0.33%. August gold contract settled 1.32% higher on Thursday to close at $ 1,316.9 per troy ounce

Spot gold was fallen 0.1 percent to $ 1315.40 an ounce at 0254 GMT. Asian shares slumped in early trading and a decline in Treasury yields pushed the dollar after news of the felled Malaysia Airlines plane sent investors running in defensive assets.

The stock lost 13% to 19.5 sen as of 9:59 am in Kuala Lumpur, to drop this year runs to 37%, while Malaysia Airports Holdings Bhd fallen 4.2%. The FTSE Bursa Malaysia KLCI Index fell 0.4% and 0.4% Malaysian ringgit weakened versus the dollar. The Bloomberg World Airlines Index fell 0.2%, after a decline of 2% on Thursday amid speculation that the accident will deter flyers.

The crash came a day after the USA and the EU announced another round of sanctions against Russia, after the annexation of Crimea in April and the ongoing tensions in the rest of Ukraine. The package of the United States was the major round of UN sanctions to date.

Precious metal also found support after Israel said late Thursday starting a ground war in Gaza after 10 days of air and ship bombing not succeeded in stopping Palestinian rocket attacks.

Gold, seen like an alternative investment in times of geopolitical concerns, rose 1.5 percent at the previous session after the news broke airplane accident, a Ukrainian official said was caused by a missile fired by militants pro-Russian .

The Happening sharply raised the shareholdings in a dispute between Kiev and Moscow pro-rebels has been occurring for months, and has increased tensions between Russia and the West.

However, the metal has dropped and nearly 2 percent in the week after a six-week winning run, as fears of financial problems in a molten Bank of Portugal and as investors worry about a hike sooner expected in interest rates in the United States.

On a measurement of investor confidence, SPDR Gold Trust exchange-traded fund backed world’s largest gold, said its holdings fell 2.69 tonnes to 803.34 tonnes on Thursday.

“We hope generate high volatility in gold, as well as a lean to climb over dip” 100McxTips Commodity Futures analysts said in a research note, quoted of geopolitical tensions.

At the Multi Commodity Exchange, gold August futures fell by Rs 44, or 0.16 per cent to Rs 28,155 per 10 grams in early morning trade.

For latest Gold market tips, MCX gold tips, news & updates  with 100McxTips Commodity Trading Advisory, follow us on Twitter and Like on Facebook

Posted in Commodity, Stocks Market

Rise in gold prices higher than most equity markets, should you invest in gold this year

Rise in gold prices higher than most equity markets, should you invest in gold this year

If you thought the equity investment and the kinds of higher risk assets was the “in thing”, think again! The increase in the prices of gold in the first quarter of this year has been lot higher than most equities markets, excluding India. Yields have also been exceeding inflation based on National Consumer Price Index in India, which ranged between 8.79 percent and 7.31 percent over this period.

“So far in this year, gold has risen 9.2 percent. This surprised many participants in the market like the majority of Commodity Advisory had predicted that lower prices. Some investors may used the pricing adjustment from last year to buy gold, but investment demand has stayed lukewarm, “said the World gold Council (WGC) in its recent press investment commentary for the first half of this year.

Gold has continued to recover in escalating geopolitical risks in the Middle East and Russia, and rising the financial risks in Europe and return to the volatility of the equity markets, according to a weekly review of ETF Securities Ltd (ETFs).

To the real interest rates slope and potential cracks that make at the historic market rally of 5 + years equities, gold trends positive. Some remaining cautious diversification towards safer assets H2 the tendency has been early, ETFS said .

“So far, that’s good prices are rising, volatility has been reduced and gold has challenged the bearish bias so many gold analysts proclaimed in early 2014. Early indicators suggest that demand from consumers remains tough even after a record year in 2013 .. The net purchases by Central banks have collected by adding about 180 tons to official reserves January to 1 May. while jewelery demand had its best first quarter since 2005, “said the note.

In comparison, most of the global markets have surged less, other landmarks of India – BSE Sensex and Nifty (National Stock Exchange) – which increased by 20 percent each during this period ahead of Narendra Modi led-NDA government victory in Election 2014.

Sorted by WGC, only a few goods saw a perform better: selected commodities (such as grains, nickel and palladium); Indian stocks (who benefit from the Bharatiya Janata Party scan the elections); and REITs in the United States.

Analysts also ascribe the surge in gold to geopolitics situation in West Asiathat created an uproar in higher risk assets such as equities. “The geopolitical situation in Iraq and Syria has established panic situations as petroleum markets and equities market worldwide. Secondly, besides the U.S. and India, the equities markets have not done spectacularly well. Thus, people chose to invest in gold, given the low price and low volatility. Gold turned out to be a steal investing and a cover in times of uncertainty. More than, prices had seen a tremendous fix before and were in a bearish mode. It also attracted investors to the yellow metal, “said commodities analyst.

The start of 2014, the for precious metals closed the week with year earnings to date over the 6.5% increase y-o-y date on the S & P 500 index. FOMC minutes of the meeting published the last week pointed out that some Fed policy makers believe that “market players were insufficient factoring on the uncertainty about the trajectory of the economy and monetary policy.” Gold rose strongly with the VIX volatility index, which ended the week at 12.1 versus to 10.3 the previous week, which was the lowest rate since February 2007. gold must be a major payee if the volatility again the equity markets.

WGC thinks investors might benefit through the addition of gold as a hedge to their portfolios, irrespective of whether they see this as a tactic to current market conditions or any part of an overall strategy to manage long-term risks answer.

Note WGC says, “Gold helps reduce the volatility of long-term portfolio, acting as a diversificador and it can help increase risk adjusted yield. Some investors may see the current climate of lower volatility as a chance to add the gold, considering that, in addition, the gold must be seen as a strategic element portfolio. “

 

For latest Gold market tips, MCX gold tips, news & updates  with 100McxTips Commodity Trading Advisory, follow us on Twitter and Like on Facebook

Posted in Commodity, MCX, Stocks Market
Contact & Visit Info
+91-761-4012307
M-Sat : 10am - 7pm
Follow

Get every new post delivered to your Inbox.