Commodity Research Report Ways2Capital 10 october 2016


Posted October 10, 2016 by ways2capital

Gold prices ended lower on Friday, reversing earlier gains, as disappointing U.S.

 
MCX - WEEKLY NEWS LETTERS
✍ GLOBAL UPDATE
✍ BULLION
Gold prices ended lower on Friday, reversing earlier gains, as disappointing U.S. employment data was seen as unlikely to alter the Federal Reserve’s plan for raising interest rates before the end of the year. Gold for December delivery on the Comex division of the New York Mercantile Exchange dipped $ 1.10, or 0.09%, to settle at $1,251.90 a troy ounce by close of trade. The contract slumped to $ 1,243.20 earlier in the session, a level not seen since June 7, before climbing to as high as $ 1,267.60 in the immediate aftermath of weaker-than-expected U.S. nonfarm payrolls data. The U.S. economy added 156,000 jobs last month, down from a gain of 167,000 in August, while the unemployment rate ticked up to 5.0%, the Labor Department said Friday. Market analysts had expected 176,000 new jobs and the jobless rate to hold at 4.9%. Hourly wages for private sector workers rose 2.6% in September from the same month a year earlier, in line with expectations. Despite the lack lustre report, the slowdown was not expected to prevent the Federal Reserve from raising interest rates later this year. Markets are currently pricing in around a 65% chance of a rate hike at December's meeting, the yellow metal ended with a loss of $64.60, or 4.9%, the worst one-week performance since mid-September 2013, amid growing expectations for a December rate hike by the Federal Reserve.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion. The U.S. dollar index, which measures the greenback's value against a basket of six major currencies, ended the week at 96.65, down 01% on the day. The index had climbed to a more than two-month high of 97.21 prior the release of the U.S. jobs report. For the week, the greenback gained 1.3% amid growing expectations the Federal Reserve would raise interest rates by the end of the year. A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies. Also on the Comex, silver futures for December delivery inched up 3.5 cents, or 0.2%, on Friday to settle at $ 17.38 a troy ounce. The contract fell to $ 17.11 earlier Friday, the lowest since June 24. On the week, silver tanked $ 1.88, or 9.55%. Elsewhere in metals trading, copper for December delivery tacked on 0.8 cents, or 0.37%, on Friday to end at $2.163 a pound. For the week, New York-traded copper prices dropped 3.1 cents, or 2.09%. In the week ahead, market players will be turning their attention to Wednesday’s minutes of



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Last Updated October 10, 2016