MCX Silver futures falls 1.70% as the dollar strengthened

MCX prices of silver futures fell 1.7% to Rs 35,755 per kg today, with feeble signs of global market amid stronger US dollar.

"The fall in the rupee against the dollar has soared. The price of one dollar has reached beyond Rs 62. After FOMC minutes, the rupee has come at 9-month low. But despite the weakness in the rupee in the domestic market did not support gold and silver." said 100McxTips bullion experts.

Today, a sharp decline is visible in gold and silver. With 1 per cent decline on MCX gold is trading below Rs 26,450. As firmly in the dollar price of precious metal in the international market has come down.

At global market, Silver for delivery in December was down 0.5 percent to $ 16.215 an ounce in New York.

100McxTips a Indian MCX Commodity advisory and generally offers services & news about in bullion gold silver trading market. Follow company Facebook profile page ( https://www.facebook.com/100mcxtips) and get market news tweets @100mcxtips 

Aluminum to Copper futures fall to 1-week low as stronger dollar erodes demand

Aluminum prices dropped to the lowest this month in London and copper futures slid to a one-week low on Tuesday due to a stronger US dollar erodes commodity demand as an alternative investment. And speculation slower growth in China curb demand for heavy industrial metal.

The dollar traded close to the highest standard since 2009 versus a basket of 10 currencies and commodity price index to Bloomberg was nearing a minimum of five years. Retail sales increased for the eighth month on October 9, according to a Bloomberg survey of economists ahead of the data must Nov. 14, adding to signs of continuing economic recovery in US.

Aluminium futures delivery in three months decreased by 0.9 percent to $ 2,016 a ton at 12:31 pm on the London Metal Exchange, after earlier reaching $ 2.008, the lowest level since Oct. 30. Cash Copper trading at $ 60.75-a-prize-ton for three-month contract LME below $ 62 yesterday.

On the Comex division of the New York, copper futures contracts for December touched a 1 week low of $ 2.991 a pound, the lowest level since 5 Nov. On last session copper traded at $ 2.995 a pound in the morning Europe, down 2.5 cents, or 0.83%.

Copper also withdrew after data showed daily inventories of followed by the LME metal was expanded for a second session to 162.025 tons. Requests for withdraw copper warehouses fell during ninth session to 29,375 tons.

The greenback stayed that way bidding amid expectations the Federal Reserve will raise interest rates ahead of the other major peers.

The dollar index, which tracks the performance of the greenback versus a basket of six major currencies, picked up 0.18% to trade at 88.03, just below up to four years of 88.31 beaten last week.

A stronger US dollar generally weighs on copper as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.

 While, signs of a slowdown in Chinese economic growth and little hope for stimulation measures broad-based central bank weigh more.

China is the biggest consumer of world copper, representing nearly 40% of world consumption last year.

Offloading in MCX base metals has increased. Copper on the London Metal Exchange is the pressure, the effect is visible on domestic market. MCX Copper nearly 1 per cent  decline to Rs 408.2. Aluminum also declined by 1.25 per cent.

100McxTips a Indian MCX Commodity advisory and generally offers services & news about in bullion gold silver trading market. Follow company Facebook profile page ( https://www.facebook.com/100mcxtips) and get market news tweets @ 100mcxtips

 

Nickel futures prices moves up on supply concerns boost demand

Nickel futures advanced a second straight day in the direction of most two-day ahead in five months, on speculation that lower prices will drive consumer buying and minimization of production of a lower grade alternative.

On the domestic front, MCX nickel November delivery prices rose by 0.78 per cent or Rs 7.50 to Rs 965.10 per kg in futures trade today as the participants created speculative positions, driven by strong overall trend . Moreover, the growing demand for alloy-makers in the domestic spot markets also affected metals prices.

"We've seen a good physical purchase interest after the recent dealing prices falls. And investors are now redirecting on the basics including ore export ban in Indonesia." metals experts said.

On global front, Nickel for delivery in three months at the LME rose 1.9 percent to $ 15.840 a ​​tonne in Hong Kong, bringing gains in last two days to 7.1 percent, the largest from May 19. The prices yesterday dropped to a minimum of $ 14,690, the weakest since March. The metal is up 13 percent this year as the constraints of Indonesia will conduct a one-month strike starting from next week Nov. 6.


100McxTips a Indian MCX Commodity advisory and generally offers services & news about in bullion gold silver trading market. Follow company Facebook profile page ( https://www.facebook.com/100mcxtips) and get market news tweets @ 100mcxtips

Copper futures trades 2-week higher on Indonesia supply worries

Copper futures quoted close to the highest in nearly two weeks as a strike lies ahead for the third largest mine in the world have fueled supply worries.

On the Comex, copper futures for December delivery gained a session high of $ 3.082 a pound, the most since Oct. 15.

The metal rallied as much as 0.3 percent in London after gaining 0.6 percent yesterday to close at the highest since October 14. Copper for delivery in three months on the London Metal Exchange gained 0 3 percent to $ 6,746.50 a tonne in Hong Kong, went to the first monthly advance since July.

The workers of the Freeport-McMoRan Grasberg mine in Indonesia will conduct a one-month strike starting from next week Nov. 6, a union official said on Monday, more than concern for employee safety.

Grasberg mine is among the world's biggest copper mines. In 2013, Freeport sold 885 million pounds of copper from Grasberg.

Today on MCX domestic market, in the base metals copper is showing mild gains. MCX Copper with a gain of 0.7 per cent trading around Rs 419.



100McxTips a Indian MCX Commodity advisory and generally offers services & news about in bullion gold silver trading market. Follow company Facebook profile page ( https://www.facebook.com/100mcxtips) and get market news tweets @ 100mcxtips

Nickel Futures Drops Near Seven-Month Low as Growth Concern Linger

Nickel futures dropped to lowest price since March in London in the midst of persistent concern demand growth can stagnate in China, the biggest consumer of industrial metals, and European with the economies weaken.

Chinese economic growth will slow to 7.2 percent this quarter, Song Guoqing, a faculty member of the People's Bank of China monetary policy advisory board, said on October 25. Business confidence in Germany, the biggest economy in the eurozone, fell for the sixth month, the business climate index Ifo institute showed today.

Nickel futures delivery in three months fell 1.7 percent to $14.759 a tonne on the London Metal Exchange, afterwards in early touching $ 14,733, the lowest since March 4. Nickel stocks were monitored by the LME rose from 90 tons to a record 378,222 tonnes, daily data showed.

On the domestic front, MCX Nickel futures prices declined 0.80% today as speculators cut their exposures amid a weak tendency overseas. At the Multi Commodity Exchange, futures prices of nickel for delivery in October fell by Rs 7.20, or 0.80%, to Rs 906.10 per kg.

The metal had crept 4.4% last week and dropped for the seventh consecutive week, the longest streak of weekly losses since 2001.

German orderbook fell 5.2 percent over the prior year, in August, data from the Federal Statistical Office showed last week. Nickel is used mostly to make stainless steel, which has applications in building including fixtures and door liner, according to BSSA.

100McxTips a Indian MCX Commodity advisory and generally offers services & news about in bullion gold silver trading market. Follow company Facebook profile page ( https://www.facebook.com/100mcxtips) and get market news tweets @ 100mcxtips

Indian Bullion Industry Body Calls Government to Roll Back Gold Imports Tariff

Indian Bullion Gems and Jewellery Trade Federation (GJF) has requested the Government to roll back tariff in gold by four per cent and hold only "beyond excellent" gold necessary for making jewelry.

At an official statement released here today, the GJF was looking for reduction of import tariffs at least four per cent from the current 10 percent to leave 10 percent difference between the import duties for gold and silver jewelry finished capita, compared with the raw material with a view to deter lower quality jewelry foothold in India.

It also endeavored to implement the 80:20 rule just beyond 55 tonnes of gold it takes a month for jewelry making. Indian bullion traders needs around 650 tons of gold to make jewelry.

Gold can not itself be held liable for the current account deficit. Gold imports in dollar terms fell dramatically from $ 50 billion in 2011-12 level of $ 30 billions levels in 2013-14, the statement said.

Gold imports to Indian bullion traders in US dollar terms has been reduced by about 20 to 25 percent and the size of imported gold has also been reduced in equal measure, GJF chairman Haresh Soni said in the news.

Head of the Council of Economic Advisers government ex C Rangarajan had also said that India can withstand $ 30 billion the value of gold imports, Soni said.

"Over the past three years, the Gold Control Raj has threatened the livelihoods of hundreds of thousands of employees and small jewelers. Industry with direct manpower 25 lakh is the second biggest employer do after in the software industry," said director Ashok Minawala GJF.

As RBI continue to restrict gold, the Government is not only losing revenue but also to encourage a parallel economy, that is putting pressure on the rupee because over dollars are needed to ensure a supply of smuggled goods. By the cartel for regulated channels and unlawful gold suppliers safe small jewelers to get their provision without extensive premium 15-18 percent, putting small jewelers and employees out of business, said representatives of GJF.

In May, the RBI relieved certain restrictions on gold imports that prevailed last year to deal with a sharp rise in the current account deficit of the country. As part of that, the RBI allowed 'star commercial firms' private exporters of jewelry that had been prohibited from import gold from July 2013 to resumption of imports with immediate effect.

Review of past restrictions on gold loans, the RBI has been issued a new circular on Tuesday that facilitated the ceiling for loans sanctioned against the pledging of gold jewelry and ornaments. The Bank completed a review its policy on December 30, limit the amount of loans punishable under RS 1 lakh.

As RBI, "Banks, for their policy approved by the Board, may decide on the ceiling regarding the amount of loans so granted contrary to the pledge of gold jewelry and ornaments final nonfarm uses." The tenor of the loan may not exceed 12 months from the date of sanction.

Read more: Govt relaxed loan limits against the pledging of gold ornaments and jewellery

100McxTips a Indian MCX Commodity advisory and generally offers services & news about in bullion gold silver trading market. Follow company Facebook profile page ( https://www.facebook.com/100mcxtips) and get market news tweets @ 100mcxtips

Trade deficit to 11-month high in June as surge in gold imports

A rise in gold imports, widens trade deficit of India for up to 11 months in June, adding to the uncertainty in the global oil prices could pile further pressure on the current account widened.

The trade deficit widened to $ 11.76 billion last month, an all time high level since July 2013, after a Reserve Bank of India takes tough rules to ease import of gold led to an annual further increased by 65 percent of shopping abroad of the yellow metal.

Exports from India rose by 10.22 percent to U.S. $ 26.4 billion in June this year, while imports amounted to USD 38.24 billion, up 8.33 percent, leaving a shortfall trade of U.S. $ 11.76 billion, according to the Department of Commerce and Industry of the data.

Exports amounted to USD 24 billion in June last year, while imports were $ 35.3 billion, according to data. May exports increased by 12,4 percent to USD 28 billion in the same month last year, whereas imports fell 11.4 percent to USD 39.23 billion.

In the April-June period, exports increased by 9.31 percent to $ 80.11 billion.

Imports, however, fell 6.92 percent to USD 113.19 billion for the first three months of this FY 2014  year.

The trade gap over the period amounted to USD 33.08 billion. Oil imports rose 10.9 percent in June to $ 13.34 billion.

Non-oil imports over the month under review rose 7 percent to $ 24.9 billion.

The country's gold imports rose 65.13 percent to $ 3.12 billion by June this year following USD 1.88 billion in the same month of the previous year.

A greedy appetite for gold among Indian consumers has caused bullion second largest single item of import after oil and was among the key factors in its development of a balance-scale payments crisis on last year.

In a desperate attempt to trim a current account deficit, India last year rose import duties on gold and imposed a rule that requires one-fifth of all imports of precious metals being re-exported.

Although such measures have slashed imports of gold and enhanced the current account, which also pushed up premiums on the national market, which caused an increase in smuggling.

However, picking up strongly gold imports could spell the curbs remain in place for a while as import bill of the country at large to rise on the back from an improvement in investment and activity is expected consumption, increasing the trade deficit.

"The industry has been calling for the disposal of restrictions on imports of gold, but a large trade deficit in the context of geopolitical tension and investment climate recovery could make the government a little more cautious," said commodity advisory 100McxTips.

Finance Minister Arun Jaitley shocked the bullion markets, keeping the import duty on gold and silver unchanged at 10 percent in his maiden budget last week.

"The government will be reconsider easing curbs import of gold once the fiscal situation becomes more comfortable." Finance Minister Arun Jaitley said last week.

100McxTips.com a Indian MCX Commodity advisory and generally offers services & news about in bullion gold silver trading market. Follow company Facebook profile page ( https://www.facebook.com/100mcxtips) and get market news tweets @ 100mcxtips