commodity News Today 6th may
Gold futures rose in the domestic market on Friday as investors and speculators created fresh positions in the precious metal amid a firm trend in overseas markets. Gold futures rose in the overseas markets on Friday as aggressive policy easing from global central banks boosted the appeal of the bullion, which is a hedge against the inflationary risk of monetary stimulus. The ECB cut interest rates to a record low and said that monetary policy will remain accommodative for as long as needed while the US Federal Reserve stuck to its USD 85 billion bond buying program to boost US economic growth. All eyes are on the US non-farm payrolls data for the month of April to be released later today which may determine the outlook for further US stimulus. At the MCX, Gold futures, for the June 2013 contract, are trading at Rs 27,138 per 10 gram, up by 0.83 per cent, after opening at Rs 27,020, against a previous close of Rs 26,914. It touched an intra-day high of Rs 27,149. (At 15:33 PM).
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Gold futures rose in the domestic market on Friday as investors and speculators created fresh positions in the precious metal amid a firm trend in overseas markets. Gold futures rose in the overseas markets on Friday as aggressive policy easing from global central banks boosted the appeal of the bullion, which is a hedge against the inflationary risk of monetary stimulus. The ECB cut interest rates to a record low and said that monetary policy will remain accommodative for as long as needed while the US Federal Reserve stuck to its USD 85 billion bond buying program to boost US economic growth. All eyes are on the US non-farm payrolls data for the month of April to be released later today which may determine the outlook for further US stimulus. At the MCX, Gold futures, for the June 2013 contract, are trading at Rs 27,138 per 10 gram, up by 0.83 per cent, after opening at Rs 27,020, against a previous close of Rs 26,914. It touched an intra-day high of Rs 27,149. (At 15:33 PM).
MCX silver for July delivery may trade positive for Friday's trading session according to Amrita Mashar, Research Analyst.
“The commodity has major support at 44200 and resistance at 45500. If the prices break 45500, then further buying can be expected till Rs 46000".
High frequency end-demand indicators have started to pick up, the SHFE/LME import price arb has opened, SHFE stocks and bonded stocks have been falling, physical import premiums have been rising, and time spreads on the SHFE have gone into backwardation.
“In our view, the sell-off may look overdone, but any price recovery is likely to be mild and difficult to sustain. We continue to favour selling into short-covering rallies in Q2,” said Barclays.
In a move that may bring some much needed supply discipline in the aluminium market Alcoa has announced that it is considering closing 460Kt of production (11% of its capacity) in the next 15 months.
The company is reviewing higher cost plants given the weakness in prices. Alcoa confirmed that it already idled 568Ktpy in Texas, Tennessee, Italy, and Spain in 2012. Whilst this is a move in the right direction towards addressing the global surplus, it will not change the immediate supply-demand balance until cuts to production begin.
Barclays continues to see the market in >1Mt surplus this year, the seventh year of surplus with cuts so far doing little to address that. In China cuts of up to 700Kt have been largely offset by increased production in cheaper locations in the country leading to a still strong increase in net supply.
Free stock tips commodity tips ncdex tips free accurate tipa mcx tips ncdex tips free tips stock future tips tomorrow. For commodity tips register here http://www.tradingresearch.in/free-stock-tips-free-commodity-tips/ or call us here 0731-6461777, 8878998885
