MCX - WEEKLY NEWS LETTERS
✍ BULLION
The finance ministry is considering introducing measures to stop malpractices of importing pure gold under that garb of dore bars or unrefined gold. It may ask jewellers and refiners to follow know your supplier, clients norms prescribed by the Organisation for Economic Co-operation and Development and adhere to the anti-money laundering law. The move comes after some instances came to light where pure gold was imported as dore. Indian Bullion and Jewellers Association also wrote to the government to address this issue. Customs duty on dore is of 8.75 per cent while for pure gold it is 10 per cent. IBJA has proposed, “that gold refiners follow stringent client acceptance procedures. Refiners shall be asked to commit to gold supply chain policy consistent with Annex II of OECD due-diligence guidelines.” It said gold dore should be sourced only from mining companies that comply with the guidelines and this should be made an integral part of the import license issued by Directorate General of Foreign Trade.
Demand for gold in India remained lacklustre this week as higher prices hampered consumer purchases, but discounts narrowed due to a correction in overseas rates. The safe-haven bullion has fallen over one per cent this week despite a mixed bag of US economic data ahead of next week’s US Federal Reserve policy meeting. In India, the world’s second-biggest gold consumer, discounts on official domestic prices came down this week to $ 20 an ounce, from last week's $ 32. “Some customers are replacing old jewellery for new, but fresh demand is still weak,” said Kumar Jain, vice-president, Mumbai Jewellers Association. In the past few months, demand in India has remained sluggish due to higher prices and as droughts hit purchases in some rural areas. India’s gold imports in August plunged 77.5 per cent from a year earlier to $1.12 billion. Gold prices in India are trading around Rs 30,865 per 10 grams on Friday, after it fell 1.6 per cent in the previous eight sessions. “People are waiting for a correction. By this month-end, retail demand is likely to improve,” Jain said. Demand for gold is expected to strengthen in the final quarter as India gears up for the wedding season as well as festivals such as Diwali and Dussehra, when buying the precious metal is considered auspicious.“Jewellers are slowly building inventory for festive season. Some jewellers are postponing purchases, hoping prices will fall below $1,300 ,” said a Mumbai-based bank dealer. Buyers in China and Hong Kong stayed away from the market as a mid-Autumn Festival holiday shuttered trade on Thursday and Friday. In Singapore, premiums rose about 80 cents from 50-60 cents last week.“With prices going down we hope that some demand will emerge. We have started seeing some queries and movement in the metal, but these are early days,” a Singapore-based metals trader said. The Tokyo market, too, remained quiet as public interest was very limited this week, keeping the premium at zero, traders said.
Last week, spot gold prices rose by 1.8 percent to close at $1337.2 per ounce after the U.S. Federal Reserve decision to keep interest rates on hold sent the dollar to its lowest level since the start of last week. The Fed stayed pat on rates but indicated it could still tighten monetary policy in the world's biggest economy by the end of the year. Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.69 percent to 950.92 tonnes last week. On the MCX, gold prices rose by 1.2 percent to close at Rs.31281 per 10 gms. Spot silver prices rose by 2.7 percent last week to close at $19.7 per ounce in line with rise in gold prices and weakness in dollar index. On the MCX, silver prices rose by 1.7 percent to close at Rs.46817 per kg

✍ ENERGY
Oil prices climbed on Wednesday, supported by a reported draw in US crude inventories and by firm import data from Japan. US West Texas Intermediate crude futures were up 1.8 per cent, or 81 cents, at $ 44.86 a barrel at 0403 GMT. The October contract expired yesterday at $ 43.44 a barrel and the front-month has now rolled over to November delivery. Traders said that the main WTI price driver had been American Petroleum Institute data showing a 7.5 million barrel draw to 507.2 million barrels in US crude inventories, the third weekly stock draw.Market participants had expected an increase of 3.4 million barrels, according to a Reuters poll.Official storage data is due to be published by the US Energy Information Administration later on Wednesday, and traders said they were also eagerly anticipating a meeting by the US Federal Reserves Federal Open Market Committee which might influence US interest rates.
WTI oil prices rose by 1.7 percent last week to close at $44.5 per barrel boosted as U.S. government data showed a surprising crude inventory drop. U.S. Energy Information Administration showed that crude stockpiles fell 6.2 million barrels last week, bringing the draw to more than 21 million barrels for this month Also, Oil prices got more support from the dollar's slide a day after the Federal Reserve kept U.S. interest rates unchanged. However, Crude futures gave back some gains after Reuters reported that a two-day expert-level meeting of the Organization of the Petroleum Exporting Countries on production cooperation had yielded no major breakthrough. The meeting was held in advance of Sept. 26- 28 talks in Algeria between OPEC and other major oil producers to discuss a potential output freeze. Also, news that Saudi may cut supply if Iran freezes output was supportive. The Saudis pumped a record 10.69 million barrels a day in August, compared with 10.2 million in January, Algeria wants major producers to cut their collective output by 1 million barrels a day.On the MCX, oil prices rose by 2.8 percent to close at Rs.2978 per barrel

✍ BASE METAL
Chinese Copper Output Jumps to Six-Month High as Capacity Grows China, the world’s top producer of refined copper, boosted output to the highest level in at least six months as domestic smelters
expanded capacity amid favourable margins. Production climbed to 743,000 metric tons in August from 722,000 tons a month earlier and 663,000 tons last year, according to data from the National Bureau of Statistics on Monday. Output rose 8.7 percent to a record 5.5 million tons in Jan - Aug, data showed.
Copper futures traded 0.62 per cent higher at Rs 324.70 per kg today as speculators widened positions amid firm global trend and higher domestic demand.
At the Multi Commodity Exchange, copper for delivery in November traded higher by Rs 2, or 0.62 per cent, at Rs 324.70 per kg, in a business turnover of 1,458 lots. Metal for delivery in far-month February next year also rose by Rs 1.85, or 0.56 per cent to trade at Rs 330.60 per kg in 8 lots. Nickel prices rose 1.04 per cent to Rs 702.70 per kg in futures trade today as speculators enlarged positions on positive cues from global markets. Besides, increased demand from alloy-makers in the domestic spot market, supported the up trend. At the Multi Commodity Exchange, nickel for delivery in October traded higher by Rs 7.20, or 1.04 per cent, to Rs 7,092.70 per kg, in a business turnover of 115 lots.

NCDEX - WEEKLY MARKET REVIEW
The National Commodity & Derivatives Exchange has said on Tuesday that 12 per cent of coriander stock failed to pass the test in an independent audit commissioned by the exchange. Stored in NCDEX accredited warehouses in Ramganj Mandi and Kota, these storages are managed by National Bulk Handling Corporation. Responding to the concerns around quality of the coriander stocks deposited in the approved warehouses, NCDEX conducted a 100 per cent sampling and audit of the stocks deposited at the NBHC warehouses at Kota and Ramganj Mandi. Testing of all the 2240 tonnes has shown that 1410 tonnes conforms to the exchange specifications on all parameters. Out of the remaining 830 tonnes, 270 tonnes failed on the parameter of damaged / discolour seeds and 10 tonnes had splits above the acceptable level, while 10 tonnes had weevil led seeds marginally above 0.5 per cent. The balance stocks of 540 tonnes showed moisture slightly exceeding permissible level of 9 per cent. "NCDEX is fully committed to ensuring good delivery of commodities. We remain vigilant about the stocks deposited in our warehouses and have suitable checks and controls in place to ensure adherence to our norms. The trust of our participants and the safety and quality of our






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