Commodity Mcx Reviews 19 February

* Gold relieves after 2% increase overnight * Asian stocks track Wall Street lesser * OCBC, Nomura say gold rates could pull back more

Gold gave up some of its sharp overnight increases on Friday, but held over $1,200 an ounce as a fall in equities stoked new safe-haven demand for the metal. 

    Asian stocks dropped from near 3-week highs on Friday; tracking a fall in U.S. equities overnight that cracked a 3-day rally. 

    Bullion's 16% rally so far present year has made it the top performing asset amidst turmoil in share markets and worries over the worldwide economy. But some analysts say markets have over-reacted and that the rate for gold would drop further.

    Spot gold eased 0.4% to $1,226.61 an ounce by 0308 GMT, after picking 2% on Thursday. For the week, it has gone nearly 1%, as investors took revenues after the metal raised to a 1-year top previous week.

    "We suppose the present gold rates rally would reverse, once risk-sentiment purchasing fades, similar to the drift seen in early 2014 and 2015," Nomura said in a note, adding that they anticipate rates to average $1,055 in the 1th 1/2.

    "Despite present monetary market unpredictability, we don’t believe there has been a major vary in the fundamentals of the worldwide wealth." 

•     For now, the metal was sustained by inflows into gold-backed exchange-traded funds (ETFs), holdings of which have already increased present year by more than they chop in the entire of 2015.

•     Assets in SPDR Gold Trust, the globe’s top gold ETF, increased 0.38% to 713.63 tons on Thursday.
•     Gold is also being boosted by growing speculation that the Federal Reserve will not be able to trek U.S. interest duties due to worries about the wealth.

•     Investors are gambling even odds at top of a single rate trek, while economists polled by Reuters see 2 rate treks present year.

•     "The key reason underpinning our bearish outlook for gold rates would still be the FOMC rate view for the year," OCBC Bank analyst Barnabas Gan said, referring to the Federal Open Market Committee.
•     Gan increased his year-end gold forecast from $950 an ounce, but still kept the estimates beneath bullion's present ranges.

•     He anticipates gold to attain $1,000 if the Fed begins 3 treks rates, and $1,150 if the central bank treks rates just once present year. 

•     In the physical markets, Asian gold demand sluggish present week as consumers opted to wait out the metal's leading rally in years, with discounts in key consumer India beating a record high as some traders cashed-out holdings. 

• Energy Oil futures chop in Asian trade on Friday as a record build in U.S. crude shares stoked worries about worldwide oversupply, outweighing moves by oil producers including Saudi Arabia and Russia to cap oil output.

• U.S. crude inventories increased by 2.1 million barrels previous week, to a peak of 504.1 million barrels, the 3th week of record highs in the past month, data from the U.S. government's Energy Information Administration (EIA) demonstrated on Thursday.

• That came as Iraq's oil minister Adel Abdul Mahdi said on Thursday that discussions will maintain amid OPEC and non-OPEC members to find ways to restore "normal" oil rates tracking a meeting on Wed.