MCX - WEEKLY NEWS LETTERS
INTERNATIONAL NEWS

SPDR Gold Trust GLD, the world's largest gold-backed exchange Traded fund, said its holdings stood at 732.96 up 19.33 tonnes, from previous business day. Holdings of the largest silver backed exchange-traded-fund (ETF), New York's iShares Silver Trust SLV, stood at 9671.69 tonnes, remain unchanged from previous business day. 

Gold prices were poised to form a "golden cross", a closely-watched technical signal, potentially giving a further boost to bullion's biggest rally in years amid growing concerns about a global economic slowdown, technical analysts said on Friday.

Aluminium Bahrain (Alba), owner of one of the world's largest aluminium smelters, has cut its dividend for 2015 to free up cash for its expansion project, Chief Executive Tim Murray said on Friday. 

Chinese zinc refineries have agreed to take sharply lower fees for processing raw material into metal as a long awaited shortage rears its head following the closure of several giant mines, industry sources said this week.


✍ Bullion
The Centre has called a meeting on Monday to finalize a proposal to set up a National Bullion Board, an umbrella body to implement gold policies and reforms, as well as a gold spot exchange. Industry stakeholders, representatives from the Indian Institute of Management Ahmadabad (IIM-A)'s India Gold Policy Centre and officials from the commerce and finance ministry will attend the meeting, which comes a week ahead of the Union Budget for 2016-17. According to sources, finance minister Arun Jaitley will announce several measures in the meeting, intended to reform the gold trade.
Read our full coverage on Union Budget 2016 Apart from these two major issues, the finance ministry will also consider duty on dore (unrefined gold) imports, in view of some cases of misuse of concessions in import duty by some refineries in excise-free zones. The move is aimed at ending a one per cent arbitrage by way of lower duty to refineries in excise-free zones. According to sources, the ministry is also considering a proposal to relax the Gold Monetisation Scheme (GMS) to ensure a better response. The Central Board of Direct Taxes had clarified that during raids by the income tax department, gold up





to 500g cannot be seized. The finance ministry might allow such gold to be monetize under GMS without producing evidence of purchase. Sudheesh Nambiath, lead analyst-precious metals, GFMS, Thomson Reuters, however, says certain factors might be missing in deliberation on gold policies. "In these deliberations, I haven't noticed willingness by policymakers to allow banks to buy gold bars from the market, allow banks to export refined gold bars and make banks operate as a bullion bank, instead of just being a channelization agent. Unless these basics are worked out, the concept of a spot gold exchange or the need to have a bullion board is not worth it."

Gold prices rallied sharply in yesterday’s session as the softness in equities clubbed with the dovish tone of the Fed policy meet helped the gold to build on the gains. Some of the Fed members sounded dovish and acknowledged that the slowdown in the emerging markets and global market uncertainty can weigh on their economy’s recovery. Also the optimism remained higher in the speculative positions that showed a 35 percent increase to 98,428 contracts – fresh buying accounted for 24,786 contracts. The weakness in the dollar after the fed minutes has helped gold to move up, however, the prices are once again trading lower from the previous session’s high suggesting that the lack of conviction in the investors to take it beyond the technical resistance levels. The markets will be eyeing for CPI data from US today for fresh cues on inflation that remains one of the catalyst in deciding the fate of the rates going ahead.

✍ Energy
Crude oil prices got negated after the release of DoE inventory data As per closing basis, WTI International showed just 11 cents gains, registering at $30.77/bbl, whereas Brent crude oil moved down by 22 cents, registering at $34.28/bbl .MCX crude prices managed gaining Rs.11, registering at Rs.2125/bbl
Total crude stockpiles in the US region moved up more than 504 million barrels, whereas stocks at Cushing also showed third weekly buildup. From products side, distillates stocks moved up for the second consecutive week and thus fading seasonal demand was the major concern. Gasoline moved up for the 14th straight week and within 7 weeks more than 37 million barrels buildup was observed. Weekly US crude productions were below 9.20 mbpd for the second consecutive week.
Natural Gas futures tumbled by over 3 per cent in the domestic market on Friday as investors and speculators exited positions in the energy commodity amide a weak trend in the overseas market as forecasts calling for less cooler weather in the US Northeast over the next two weeks threatened to curb the demand outlook for the heating fuel in the world’s biggest gas consuming nation. Latest weather forecasting models signaled higher-than-normal temperatures in the US later in February and in early March, threatening to curb demand for gas-fired heating at offices and homes. About 49 per cent of US households use natural gas for heating purposes. November to March is the peak US gas heating season. At the MCX, Natural Gas futures for February 2016 contract closed at Rs 123.8 per mm Btu, down by 3.28 per cent, after opening at Rs 128, against the previous closing price of Rs 128. It touched an intra-day low of 12


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