Free MCX Tips: Fading production cut hopes hit Oil

Free MCX Tips: Crude oil futures tanked nearly 4% in the Indian market on Tuesday, suffering the biggest two-day drop in nearly seven years in the overseas market where it settled at below the USD 30 per barrel mark as optimism over a cutback in output from major producers vanished, while traders braced for a hefty jump in weekly US storage levels, threatening to worsen a global supply glut in the energy commodity.

Talks between Russian Energy Minister and his Venezuelan counterpart failed to result in any concrete plan over a coordinated production cut, media reports said.

Oil had advanced last week as Russia said that Saudi Arabia, the OPEC’s biggest oil producer, had suggested an output cut which had raised hopes that the OPEC and Non-OPEC nations may agree on production cutbacks to reduce oversupply and support prices.

Traders weighed mixed US economic data as business activity growth in New York City slowed in January while consumer confidence rose in early February, signaling a mixed outlook for the fuel in the world’s biggest economy.

The ISM’s New York business conditions index fell to 54.6 in January from 62 in February, with a reading above 50 signaling expansion. The IBD/TIPP economic optimism index, a gauge of US consumer confidence climbed to 47.8 in February from 47.3 in January.

Oil may extend losses today after the industry-funded API reported a 3.8 million barrels spike in US crude stockpiles last week, a sign that the market remains over-flooded with oil.

At the MCX, Crude oil futures, for the February 2016 contract, closed at Rs 2,069 per barrel, down by 3.9 per cent, after opening at 2,109, against the previous close price of Rs 2,153. It touched an intraday low of Rs 2,042.

MCX GOLD TIPS: Bullish finish for Bullion on safe haven lure Date

MCX GOLD TIPS: Gold futures closed higher in the Indian market on Tuesday as a continued oil collapse and mounting worries over a China slowdown curbed risk taking appetite and forced a flight to the safety of the yellow metal.

Traders shunned equities with major stocks at Wall Street sinking nearly 2 per cent each as crude oil posted its biggest two-day drop in nearly seven years and as concerns over a faltering global economic recovery exacerbated. Tumbling equities bolstered the appeal of the gold as an alternative asset.

However, caution ahead of the US jobs data later this week which may show that the world’s biggest economy added a robust 190,000 jobs in January, signaling a strong ongoing labour market recovery, trimmed gains in the bullion. The jobs data may offer cues over the timing of the US Federal Reserve’s next interest rate rise after a maiden lift-off in December since 2006.

While tepid recent economic data with consumer spending standing little changed in December and manufacturing contracting in January, coupled with the continued global financial volatility, have pared back bets over further tightening in borrowing costs, Kansas City Fed President Esther George on Tuesday stressed that the recent financial turmoil was anticipated, meaning that there is no reason why the Fed should delay tightening interest rates further.

Gold may trade on a cautious note today ahead of US private payrolls and services data for January.

At the MCX, Gold futures for February 2016 contract closed at Rs 26,891 per 10 gram, up by 0.41 per cent after opening at Rs 26,848, against the previous closing price of Rs 26,782. It touched the intra-day high of Rs 26,998.

MCX GOLD TIPS: Gold closes higher on strong global cues

MCX GOLD TIPS: Gold prices closed higher in the Indian market on Monday as dismal China factory data which showed that manufacturing in the country contracted for a 6th month on the trot in January signaled a worsening slowdown in the world’s 2nd largest economy, bolstering the case for further monetary easing by officials, supporting the lure for Gold, which is a hedge against the inflationary risk of monetary stimulus. The China official manufacturing gauge fell to a three-year low of 49.4 in Jan, below the neutral mark of 50. However, the gains in the bullion were curbed by caution ahead of United State consumer spending and manufacturing data which may signal a continued slowdown in the world’s biggest economy, probably delaying the next Federal rate hike. Gains were also limited as a weaker dollar raised the appeal of bullion as an alternative asset. Weaker greenback makes the Gold cheaper for those holding other currencies, thus increasing demand. At the MCX, Gold futures for Feb 2016 contract closed at Rs 26,782 per 10 gram, up by 0.54% after opening at Rs 26,700, against the last closing price of Rs 26,638. It touched the intra-day high of Rs 26,883.

Crude Oil Tips: Crude oil drops 1.49 pct after China PMIs

Crude Oil Tips: Crude oil prices fell by 1.49 per cent on Monday on dimmed hopes for demand-led growth as China showed manufacturing remains in contraction. In China the semi-official manufacturing PMI for January reached 49.4, missing the 49.6 level seen and remaining in contraction and the Caixin Manufacturing PMI index came in at 48.4, a bit above the expected 48.0.

At the MCX, crude oil futures for February 2016 contract were trading at Rs. 2,252 per barrel, down by 1.49 per cent, after opening at Rs. 2,276 against the previous closing price of Rs. 2,286. It touched the intra-day low of Rs. 2,246 till the trading. (At 12.00 PM today).

Losses were curbed amid speculation OPEC and non-OPEC producers may be edging closer to a deal to cut production in an effort to tackle one of the biggest supply gluts in decades.

Investors will be awaiting a flurry of survey data on manufacturing and service sector growth amid concerns over the outlook for the global economy.

Free MCX Tips: Natural Gas Bulls continue to roar

Free MCX Tips: Natural gas futures surged by more than 4.5% in the domestic market on Friday as investors and speculators booked fresh positions in the energy commodity amidst hopes that cold weather in the US in early to mid- February may bolster the demand for gas-fired heating in the world’s biggest gas consuming nation, continuing to erode storage levels.

About 49% of United State households use natural gas for heating purposes. November to March is the peak US gas heating season

US gas stockpiles fell by 211 billion cubic feet to 3.086 trillion cubic feet in the week ended January 22, 2016.

At the MCX, Natural Gas futures for Feb 2016 contract closed at Rs 155.9 per mmBtu, up by 4.56 per cent, after starting at Rs 150.5, against the last closing price of Rs 149.1. It touched an intra-day high of 156.6.

MCX Gold Tips: Profit booking bites Bullion

MCX Gold Tips: Gold futures ended with modest losses in the Indian market on Thursday as the sharp gains in the yellow metal in recent sessions gave way to profit booking in the bullion, by investors and speculators, at existing levels.

A rebound in US equities amidst a rally in oil prices also dimmed the safe haven appeal of Gold.

The precious metal retreated slightly in the overseas market but the losses were curbed by a weaker dollar which supported the bullion’s appeal as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand.

Traders weighed a slightly dovish US Federal Reserve policy statement in which the world’s top central bank underlined the heightened risks to US economic growth amidst global headwinds but stopped short of ruling out further interest rate hikes over the coming months.

However, the FOMC signaled a slow pace of policy tightening, auguring well for Gold, a non-interesting bearing asset. The Fed left interest rates unchanged following a maiden hike since 2006 in December.

Gold may rise today after the Bank of Japan adopted a negative interest rate to boost the country’s economy.

At the MCX, Gold futures for February 2016 contract closed at Rs 26,710 per 10 gram, down by 0.15 per cent after opening at Rs 26,844, against the previous closing price of Rs 26,749. It touched the intra-day low of Rs 26,600.

MCX Gold Tips: Bullion extends gains

MCX Gold Tips: Gold futures surged by more than 1 per cent in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal tracking a up trend in the overseas market after data showed that China’s imports of the bullion soared to the highest stage in more than two years in December 2015, up by 67 per cent from Nov, signaling strong demand for the yellow metal in the world’s biggest gold consuming nation.

Further, the yellow metal continued to benefit from robust safe haven inflows as a slump in US equities amidst continued worries over a possible hard landing in China’s economy prompted investors to shun risky assets and seek shelter in the safety of the bullion.

Gold may extend gains today after the US Federal Reserve left interest rates unchanged on Wednesday, whilst signaling that it will continue to undertake a gradual approach in tightening borrowing costs further in the world’s biggest economy amidst heightened global headwinds, bolstering the lure for gold as a store of value. Fed policymakers are closely watching international developments and their possible impact on US economic outlook.

At the MCX, Gold futures for February 2016 contract closed at Rs 26,749 per 10 gram, up by 1.37 per cent after opening at Rs 26,450, against the last closing price of Rs 26,387. It touched the intra-day high of Rs 26,809.