Mcx Commodity Market Reviews 09 February

Bullion Gold futures risen by more than 3% in the local market on Monday, marking the top settlement since June in the abroad market as shareholder sought haven in the safety of the yellow metal amidst a renewed rout in oil rates which dished lower USD 30/barrel, rekindling doubts over the strength of the worldwide wealth. A fall in equities and weaker dollar boosted the appeal of the bullion as an alternative asset. Wall Street sank on Monday with benchmark S&P 500 striking a 22-month low and Nasdaq Composite approaching a stomach market, as traders fret over a hesitating globe wealth amidst a China delay and an ongoing commodity fall. Weaker greenback also boosted gold demand by making the yellow metal cheaper for those holding other currencies.

Physical demand for Gold enhanced amidst the ongoing China Lunar New Year festivities when gold buys in the globe’s 2th leading wealth lean to pickup. Expects that the US Federal Reserve may setback tapering interest charges further tracking a maiden lift-off in borrowing costs in Dec. since 2006 also increased the lure for the bullion metal as a store of value. A delay in job expansion in January signaled small headwinds to the US labor market improvement, bolstering the case for the Fed to put off policy tapering for some time. Gold futures may expand increases today as a sustained worldwide equity rout bolsters gold’s asset appeal.

At the MCX, Gold futures for April 2016 contract ended at Rs 28,458/10 gram, gain by 3.39% after opening at Rs 27,578, against the last ending rate of Rs 27,524. It touched the day high of Rs 28,527.

Crude oil futures fallen by 5% in the local market on Monday, dipping to the minimum range in more than 2 weeks to lower the USD 30/barrel mark abroad as shareholders and investors shunned the energy commodity amidst heightened worries over a rising supply glut with few cues that major producers would reduce output. A meeting over the weekend amid OPEC producers Saudia Arabia and Venezuela closed without any concrete plans over a matched production reduce and stabilizing beaten fall rates, making traders anxious.

for now, the demand side fundamentals for the fuel remain weak with US demand for oil products tumbling by 3.9 per cent in January 2016 from the year ago month, Barclays said, while China’s apparent oil demand shrank 0.8 per cent in December 2015 from a year ago to 11.35 million barrels a day, Platts China Oil Analytics said, media reports showed. A softening US labour market recovery also threatened to cap oil demand further in the world’s biggest fuel consuming nation. The Federal Reserve’s labour market conditions index fell to 0.4 in January, the lowest since March 2015, from 2.3 in December, with a reading over 0 signaling growth.

Oil may record a small return today as the recent fall in the fuel paves way for bargain purchasing.

At the MCX, Crude oil futures, for the Feb. 2016 agreement, ended at Rs 2,048/barrel, fall by 5.05%, after opening at 2,139, against the last end cost of Rs 2,157. It touched a day low of Rs 2,028.

Zinc futures raised by nearly 4% in the local market on Monday as shareholders and investors booked new spots in the industrial metal amidst a pickup in physical demand for zinc in the local spot market. Further, speculation of a boost in European Central Bank (ECB) spur next month to prop up a improvement in the 19-member Euro area wealth also boosted the demand outlook for the industrial metal. A measure shareholder sentiment in the Euro zone fallen to 6 in February from 9.6 in Jan, bolstering the case for the ECB to step gain its 1.1 trillion euro bond purchasing program in March.

At the MCX, Zinc futures for Feb. 2016 agreement ended at Rs 118/kg, gain by 3.92% after opening at Rs 113.35, against the last ending cost of Rs 113.55. It touched the day high of Rs 118.2.