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.

MCX Base Metal Tips: Zinc rallies over 1% on firm physical demand

MCX Base Metal Tips: Zinc futures surged by more than 1% in the domestic market on Monday as investors and speculators booked fresh positions in the industrial metal amidst a pickup in physical demand for zinc in the domestic spot market.

Further, hopes of a pickup in demand from China, the world’s biggest metals consumer after policymakers committed to cut overcapacity in key industries such as steel also buoyed sentiment.

Investors shrugged off weak German data which showed a plunge in business confidence for a second straight month in January, clouding the demand outlook for metals in Europe’s biggest economy. The gauge measuring German business sentiment fell to 107.3 in January from 108.6 in December.

At the MCX, Zinc futures for January 2016 contract closed at Rs 103.15 per kg, up by 1.13 per cent after opening at Rs 101.6, against the last closing price of Rs 102. It touched the intra-day high of Rs 103.25.

MCX Base Metal Tips: Copper bites the dust on China worries

MCX Base Metal Tips: Copper futures fell in the domestic market on Mon as investors and speculators exited positions in the industrial metal amidst worries that demand from top consumer China may weaken in the coming days ahead of the Lunar New Year holidays when factories and businesses remain shut for a week due to festivities.

China accounts for more than 40 per cent of the metals consumption.

However, the losses in the base metal were curbed by the prospects of a stimulus boost in the 19-member Euro area economy after the European Central Bank (ECB) on Thursday indicated that it may consider expanding its easing program in March, supporting the metal’s demand outlook.

At the MCX, Copper futures for February 2016 contract is trading at Rs 300.1 per kg, down by 0.38 per cent after opening at Rs 300.4, against the previous closing price of Rs 301.25. It touched the intra-day low of Rs 299.6. (At 11:45 AM).

MCX GOLD TIPS | Bullion lower as safe haven appeal fades

MCX GOLD TIPS: Gold futures fell during noon trade in the domestic market on Friday as a rebound in global equities amid easing concerns over China after the country’s officials moved to calm volatility in stock markets by abandoning a system of market circuit breakers whilst refraining from a further reduction in the Yuan’s reference rate, dimmed the safe haven lure for the yellow metal.

Traders also resorted to profit-booking in the precious metal after a stellar rally over the past few sessions when heightened geopolitical tensions amidst the Saudi-Iran tussle, North Korea’s successful testing of a hydrogen bomb, and a China stock market rout that wiped out more than USD 2 trillion from global equities, had sparked a surge in safe haven inflows into the bullion.

Caution ahead of the monthly US payrolls data which may show that the world’s biggest economy probably added 200,000 jobs in December, signaling strength in the country’s labour market recovery, bolstering the case for the US Fed to keep lifting interest rates this year, and dimming the lure for Gold as a store of value, also weighed on Gold futures.

At the MCX, Gold futures for February 2016 contract is trading at Rs 25,936 per 10 gram, down by 0.63 per cent after opening at Rs 26,022, against the previous closing price of Rs 26,100. It touched the intra-day low of Rs 25,931. (At 12:08 PM).

MCX BASE METAL TIPS | China rout takes down Zinc as prices slip over 3%

MCX BASE METAL TIPS: Zinc futures slid by more than 3% in the domestic market on Thursday as investors and speculators exited positions in the industrial metal amidst subdued physical demand for zinc in the domestic spot market.

Stock market turmoil in China, the world’s largest metals consumer, threatened to signal deep-rooted problems in world’s second biggest economy, darkening the demand outlook for Zinc. The Chinese central bank lowered the value of the country’s currency by the most since March 2011, fueling fears over China’s economic health, and causing an exodus from equities worldwide with the Shanghai Composite falling over 7%, triggering an automatic circuit breaker, leading to a trading suspension for the second time this week. Investors fear that China’s move to weaken the Yuan may hurt Chinese metal demand as a weaker currency threatens to curb imports.

Traders cast aside data showing a surge in German factory orders in November, signaling a pickup in Europe’s biggest economy, buoying the demand outlook for base metals. Bookings for German factory goods climbed 1.5 per cent in November over the previous month.

At the MCX, Zinc futures for January 2016 contract closed at Rs 99.45 per kg, down by 3.45 per cent after opening at Rs 102.1, against the previous closing price of Rs 103. It touched the intra-day low of Rs 98.15.

MCX BASE METAL TIPS | Zinc tanks over 2% on global growth fears

MCX BASE METAL TIPS: Zinc futures slid more than 2 per cent during noon trade in the domestic market on Thursday as investors and speculators exited positions in the industrial metal amidst weak physical demand for zinc in the domestic spot market.

Further, a slowing global economy darkened the demand outlook for industrial metals as the World Bank cut the global growth forecasts for 2016 to 2.9 per cent from 3.3% estimated earlier as a slowdown in China prolongs a commodity slump while Brazil and Russia suffer steep recessions. China’s economic growth forecast was cut to 6.7 per cent in 2016 from 7 per cent estimated earlier, while the economy is set to slow further to 6.5 per cent in 2017.

Meanwhile, US services growth slowed in December and factory orders fell 0.2% in November, signaling a cooling recovery in the world’s biggest economy that threatens to curb metal demand. The gauge measuring services activity in the US fell to 55.3 last month from 55.9 in November, but remaining above the neutral 50-mark.

At the MCX, Zinc futures for January 2016 contract closed at Rs 100.75 per kg, down by 2.18 per cent after opening at Rs 102.1, against the previous closing price of Rupees 103. It touched the intra-day low of Rs 100.55. (At 12:28 PM).

COMMODITY TRADING TIPS | Yellow metal dazzles on rising safe haven appeal

COMMODITY TRADING TIPS: Gold futures soared by over 1 per cent in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market where the bullion marked its best finish in two months as heightened geopolitical worries and signs of a worsening slowdown in China boosted the safe haven lure for Gold. North Korea said that it successfully staged its first test of a more powerful form of nuclear weapon, while the Saudi-Iran row threatened to escalate into a sectarian crisis in the already fragile Middle East region. Worries over a global slowdown also bolstered gold as the World Bank cut the global growth forecast for 2016 to 2.9 per cent from 3.3 per cent estimated earlier as a slowdown in China prolongs a commodity slump while Brazil and Russia suffer steep recessions. China weakened the yuan’s reference rate by the most since August, raising concerns over a worsening slowdown in the world’s second biggest economy, pushing global equity markets into a tailspin as traders shunned risky assets, seeking shelter in the safety of the yellow metal. The Dow Jones Industrial Average plunged 1.47 per cent; the Nasdaq Composite dropped 1.14 per cent while S&P 500 fell 1.31 per cent. Weakness in equities bolstered the lure for gold as an alternative asset. Minutes from the Fed’s December meet, released on Wednesday which showed that policymakers saw the decision to raise interest rates in December as a “close call” didn’t have much of an impact on Gold traders. “Almost all” of the FOMC members were satisfied that the criteria for tightening policy rates had been met, the minutes showed. A weaker dollar also bolstered the lure for the bullion as an alternative asset. Weaker greenback makes Gold cheaper for those holding other currencies, thus bolstering demand. Gold may extend gains today as a renewed rout in China pushes global markets into a freefall, boosting demand for safe haven assets. At the MCX, Gold futures for February 2016 contract is trading at Rs 25,741 per 10 gram, up by 1.39 per cent after opening at Rs 25,469, against the previous closing price of Rs 25,388. It touched the intra-day high of Rs 25,784.

BASE METAL TIPS | Zinc drops on weak global cues

BASE METAL TIPS: Zinc futures fell by 0.96% to Rs 103.35 per kg today as speculators reduced positions in the midst of a weak trend globally. Besides, low demand in Indian spot markets fuelled the downtrend. Zinc futures for January 2016 agreement, at MCX, were trading at Rs 103.35 per kg, down by 0.96 per cent after opening at Rs. 104.05 against the last closing price of Rs. 104.35. It touched the intra-day low of Rs. 103 till the trading. (At 3.50 PM today). Further, service sector activity in Spain fell more-than-expected last month, industry data showed on Wednesday signaling weak sentiment in the region which reduced the requirement for the metal. In a report, Markit Finacial Information Services said that Spanish services PMI fell to a seasonally adjusted 55.1, from 56.7 in the preceding month.

Major refined zinc exporting countries are Canada, Australia and Rep. of Korea, while major refined zinc importing countries are China, USA and Germany.

FREE MCX TIPS | Tepid China services data bites Copper

FREE MCX TIPS: Copper futures fell during noon trade in the domestic market on Wednesday as investors and speculators exited positions in the industrial metal as sluggish China services data which showed a further slowdown in the world’s second biggest economy clouded the demand outlook for copper.

The China services index declined to 50.2 in December from 51.2 in November, with a reading above 50 signaling expansion.

China’s manufacturing activity contracted for the tenth month on the trot in December, data showed earlier in the week.

China is the world’s biggest copper consumer, accounting for nearly 50 per cent of global copper demand.

Traders are eying US factory, services, exports & employment data and the FOMC minutes today.

At the MCX, Copper futures for February 2016 contract is trading at Rs 310.10 per kg, down by 0.29 per cent after opening at Rs 311.5, against the previous closing price of Rs 311. It touched the intra-day low of Rs 310.05. (At 12:19 PM).

MCX GOLD TIPS | Gold flat on profit-booking after stellar gains

MCX GOLD TIPS: Gold futures were trading on a flat note during late morning trade in the domestic market on Tuesday as Monday’s stellar rally paved the way for profit-booking by investors, in the precious metal, at existing levels.

Prices of the precious metal advanced over 1.7 per cent on Monday as heightened tensions in the Middle East amidst a Saudi-Iran diplomatic spat and a China stock rout that sent global financial markets into a tailspin boosted the safe haven demand for the bullion.

Disappointing US factory data which showed that US manufacturing shrank the most in over six years last month, raised bets that the Federal Reserve may stick to its pledge of a gradual pace of policy tightening, supporting the bullion’s appeal as a store of value.

At the MCX, Gold futures for February 2016 contract is trading at Rs 25,402 per 10 gram, up by 0.02 per cent after opening at Rs 25,336, against the previous closing price of Rs 25,397. It touched the intra-day high of Rs 25,424.

MCX GOLD TIPS | Bullion soars on safe haven demand

MCX GOLD TIPS: Gold futures surged by nearly 1.8 per cent in the domestic market on Monday, marking the biggest rally in a week in the overseas market as investors flocked to the safety of the precious metal amidst heightened tensions in the Middle East due to a Saudi-Iran diplomatic row, a China stock market plunge and worries over the health of the world economy, bolstering the safe haven appeal lure for Gold.

Saudi Arabia severed diplomatic ties with Iran, raising tensions in the oil-rich Middle East region. Saudi Arabia expelled Iran’s diplomats from the country after an attack on its embassy in Tehran to protest the Saudis’ execution of a well-known Shiite cleric, marking the worst crisis in relations between the nations since the late 1980s.

Global equities were in freefall mode, with markets in China plunging nearly 7 per cent which resulted in a trading halt, as the country’s manufacturing shrank at a faster pace in the month of December, raising fears over a hard landing in the world’s 2nd biggest economy, bolstering the lure for Gold as an alternative asset.

US stocks plunged with the Dow Jones Industrial Average tanking 1.58 per cent; the Nasdaq Composite dropping 2.08 per cent while S&P 500 shedding 1.53 per cent after US manufacturing contracted at the fastest pace since June 2009 in December 2015, signaling a worsening factory slump in the world’s biggest economy, prompting a flight to the safety of the yellow metal.

Gold futures may extend gains today as dismal US factory data raises speculation that the Fed may hike borrowing costs at a gradual pace this year, bolstering the lure for the bullion as a store of value.

At the MCX, Bullion futures for February 2016 contract is trading at Rs 25,397 per 10 gram, up by 1.74 per cent after opening at Rs 25,040, against the last closing price of Rs 24,962. It touched the intra-day high of Rs 25,521.

MCX GOLD TIPS | Yellow metal buoyed by safe haven demand

MCX GOLD TIPS: Gold futures advanced in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal as rising tensions in the Middle East, as Saudi Arabia severed diplomatic ties with Iran after an attack on its embassy in Tehran to protest the Saudis’ execution of a prominent Shiite cleric, bolstered the safe haven appeal of the yellow metal.

Meanwhile, equities across Asia were in freefall mode, with markets in China plunging nearly 7% after manufacturing shrank at a faster pace in the month of December, raising fears over a hard landing in the world’s second biggest economy, bolstering the lure for Gold as an alternative asset.

At the MCX, Gold futures for February 2016 contract is trading at Rs 25,165 per 10 gram, up by 0.81 per cent after opening at Rs 25,040, against the previous closing price of Rs 24,962. It touched the intra-day high of Rs 25,180. (At 11:50 AM).

MCX GOLD TIPS | Gold logs slim gains on first day of 2016

MCX GOLD TIPS: The bullion posted mild gains on Friday, the first day of a brand New Year, amidst thin trading volume with global markets being closed on the occasion of New Year while most traders shied away from their trading desks as they were busy in New Year festivities.

Investors were eying the outlook for US interest rates with key US economic data due this week including the December factory & payrolls numbers, which will offer further cues over the health of the world’s biggest economy.

The Fed said last month that it will raise borrowing costs at a gradual pace, following the maiden lift-off in interest rates in almost a decade, in December.

A measured pace of interest rate tightening will boost the bullion, which is a non-interest bearing asset.

Gold may extend gains today as rising tensions in the Middle East, as Saudi Arabia severed diplomatic ties with Iran after an attack on its embassy in Tehran to protest the Saudis’ execution of a prominent Shiite cleric, bolsters the safe haven appeal of the yellow metal.

At the MCX, Gold futures for February 2016 contract is trading at Rs 24,962 per 10 gram, up by 0.12 per cent after opening at Rs 24,913, against the previous closing price of Rs 24,931. It touched the intra-day high of Rs 25,039.

MCX Gold Tips | Bullion begins New Year on positive note

MCX Gold Tips: Gold futures were trading higher in the local market on Friday as investors and speculators booked fresh positions in the yellow metal amidst speculation that the US Federal Reserve may raise borrowing costs at a gradual pace this year, following the maiden US interest rate hike since 2006, last month, bolstering the lure for the bullion as a store of value.

US jobless claims jumped 20,000 to 287,000 last week, the highest level since July while a business activity gauge contracted the most since August 2009 previous month with the Chicago PMI falling to 42.9 from 48.7 in November,signaling a slowdown in the world’s biggest economy, bolstering the case for a gradual pace of monetary tightening by the Fed.

Trading volumes may remain this today as traders remain busy in New Year festivities.

At the MCX, Gold futures for February 2016 contract is trading at Rs 24,997 per 10 gram, up by 0.26 per cent after opening at Rs 24,913, against the previous closing price of Rs 24,931. It touched the intra-day high of Rs 25,039 (At 10:21 AM).