India gold slips from 2-month high
India gold slipped from its morning high on Wednesday as investors chose to take profits after a rally that took it to a more than two months high triggered by safe haven buying, but traders hoped for bigger falls to stock up for weddings, dealers said.
* The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.08 percent lower at 28,757 rupees per 10 grams, reversing from an earlier high of 28,830 rupees, a level last seen on Sept. 6.
* Physical buying stayed weak as prices were still in the vicinity of the 2-month high, and traders waited for better bargains.
* "Buying is poor as prices are still high... any correction in price will see buying from India re-emerge," said a dealer with a private, bullion-importing bank in Mumbai.
* The wedding season -- traditionally a time of strong demand for gold -- will continue into December in India, the world's biggest buyer of bullion.
* Firm global leads and a weaker rupee kept the downside in prices limited, dealers said.
* The rupee fell to its lowest in more than two weeks on Wednesday after a large company bought dollars, while choppy shares provided little comfort.
* Global gold inched up on fears the euro zone debt crisis could engulf Italy, despite news that Prime Minister Silvio Berlusconi would resign, which was initially seen as clearing the way for a new leader to act more aggressively to tackle the country's debt problems.
* Berlusconi said he would leave office after parliament approved a budget law that included reforms demanded by Europe as Italy's failure to fix its debt problems would have a far bigger impact on the euro zone than difficulties in Greece. Source:- moneycontrol.com
Target for MCX crude Nov at Rs 4,855-4,880:
Ramaswamy, head commodities at Ventura Securities has come out with a report on crude oil. He says, “Crude looks to be continuing on the upside now, therefore one could remain long in crude oil."
He is expecting targets of Rs 4,855 to Rs 4,880 for intraday with a stop loss of Rs 4,770.
According to an atomic power agency report, the rising tensions of the Iran nuclear programme has further pushed the commodity and so his target is close to USD 98 per barrel.
"With regards to copper, it’s a buy in the range of Rs 390 to Rs 392,"said Ramaswamy. He says, we could expect price levels of Rs 396 to Rs 398 on an intraday perspective, with a stop loss of Rs 388. Source:- moneycontrol.com
Bullion News
Something that you often hear about gold, as a monetary asset, is that the supply of gold – the amount of gold in the world – increases by about 2% each year due to Gold Mining activities, writes Nathan Lewis, of New World Economics. We don't really consume gold. Most of the gold that has ever been mined (the US Geological Survey estimates 85%) still exists today as bars, coins and jewellery. Even the small bit that is used in industry is often recycled
Gold prices have broken above the $1750 level and COMEX gold is currently trading around $1790/oz. Traditionally, the November-December season has been bullish for gold.
China's imports of Gold from Hong Kong, leapfrogged by 470% in September as per data released by the Hong Kong government. Chinese imports from Hong Kong are considered a good indicator of overall Chinese demand since the Chinese government does not release official figures..
Metals News
Scrap copper market in Guangdong province, the major centre for copper scrap, is facing a tightness in supply because of strict customs crackdown. Most refined copper production in the region uses scrap copper as the primary raw material and as such a decline in the raw material may provide support to copper prices.
COMEX copper fell on Tuesday as the euro pared gains and political uncertainty increased after Italy's Prime Minister Silvio Berlusconi lost his parliamentary majority, piling pressure on him to resign.
Base metals and steel billets futures traded on a mixed trend at the London Metal Exchange on Tuesday. LME Copper price pushed up 0.57% to $7820per ton as compared with its previous close of $7775 per ton.
Oil & Oilseeds News
The future of Roundtable on Sustainable Palm Oil (RSPO) appears bleak as the Malaysian Palm Oil Association (MPOA)had warned the certification association on the low uptake of certified palm oil by the members.
Agricultural commodity futures trading in India has witnessed a surge in the first six months of fiscal year 2011-12 registering a growth of 55.45% at Rs 9,32,792 cr.
The India government, in a bid to incentivize production of oil seeds have decided to give a fillip in the form of MSP hike for mustard seed and several other commodities. Also, the government hiked the MSP for wheat, but not to the same extent that it decided in case of mustard seed.So, will the hike in MSP for mustard seed affect its prices negatively on the NCDEX? If yes, when and to what extent? Will the hike in MSP’s for oil seed would be at the cost of wheat production? Sudha Acharya, oil seed/pulses analyst with Kotak Commodities gives the answers to Rakesh Neelakandan of Commodity Online in an interview.
