Mcx Commodity Reviews 12 February

Bullion Gold on Friday clung to sharp overnight increases that pressed the metal to a 1 year high, and looked set to post its top week in over 4 years as share market turmoil stoked safe haven demand.  Asian stocks slip as rising worries about the strength of European banks further threatened a worldwide financial view. MSCI's worldwide share index ended more than 20% beneath its all-time high. 

Safe-haven assets shone across the board. U.S. ten-year Treasury yields strike their minimum since 2012 and the Japanese yen rose to its maximum in fifteen months against the dollar, while money sustained to flow into gold-backed exchange traded funds. Spot gold increased to $1,260.60 on Thursday, its maximum in a year, before paring some increases to close up 4% in its leading daily increase in about 2-1/2 years. On Friday, it eased 0.9% to $1,235.85 by 0335 GMT. 

"We are considering a flight to quality," said a Sydney-based trader. "ETFs have been accumulating the metal for some time now. They are one of the main drivers (of the gold rally) along with the share markets which are very soft."

Assets in SPDR Gold Trust, the world's top gold ETF, increased 2% on Thursday, the leading inflow in 2 months.  Total holdings of the top 8 gold ETFs have grow by 3.8 million ounces so far present year, after 3 straight years of fall.  The risk off opinion has made gold the top performing commodity in 2016, ANZ said, while others expected further increases.

"$1,300 will be likely if shares do not stop lessening," said Yuichi Ikemizu at Standard Bank in Tokyo. Jeffrey Gundlach, the co-founder and chief executive officer of Double Line Capital, said gold is expected to achieve $1,400 as shareholders lose confidence in central banks.

For the week, spot gold is gain 5.5%, the largest weekly increase since Oct. 2011. U.S. gold futures are set to post an increase of nearly 7% for the week, the sharpest such bound since 2008.  Also helping gold was dovish remarks from Federal Reserve Chair Janet Yellen, who worried that the U.S. central bank wasn’t on a "pre-set" path to return policy to "normal" among a worsening reduce in worldwide share markets.

Though Yellen said she still anticipates the Fed to slowly increase prices present year, federal funds rate futures have almost entirely priced out the prospect of a price trek.

U.S. crude slid on Thursday, striking 12-year lows as local stockpiles grew, and Goldman Sachs called for depressed rates until the 2th 1/2 of the year and traders fled from equities and other unsafe assets into safe havens such as gold.