✍ MCX - WEEKLY NEWS LETTERS
INTERNATIONAL NEWS

Gold gains on weak dollar and shares, still near three-week low
Gold rose on Monday, rebounding from a three-week low hit in the previous session, as the dollar dropped and European equities suffered from soft Chinese trade data coupled with worries about Greece.
Spot gold gained 0.6 per cent to $1,240.65 an ounce by 1050 GMT. The metal posted its biggest one-day loss since December 2013 on Friday, hitting $1,228.25, as the dollar rallied after strong US payrolls data."There is a lot of volatility in the market, triggered by how elements of the macro environment interact: you have the US interest rate hike talk but also worries over Greece. Both are likely to continue over the next few weeks," Societe Generale analyst Robin Bhar said.
European shares tracked losses on Wall Street and in Asia, with disappointing Chinese trade data further raising concerns about growth in the world's second-biggest economy.Gold was also helped as the dollar gave back some of its gains made on Friday after data showed US jobs growth rose solidly in January and wages rebounded, an indication of economic strength that put a mid-year interest rate increase from the Federal Reserve back on the table.
The US central bank has held benchmark borrowing costs near zero since December 2008. An increase in rates should further boost the dollar, in turn denting demand for gold, a non-interest-bearing asset.Investors were also monitoring news from Greece after the new government reaffirmed its rejection of an international bailout programme.Hedge funds and money managers cut their bullish bets on gold and silver futures and options for the first time in six weeks during the week to Feb. 3, US Commodity Futures Trading Commission data showed on Friday.In the physical markets, Chinese premiums rose to $4-$5 an ounce on Monday, from less than $4 in the previous session, as last week's sharp decline in prices attracted some buyers.
Chinese consumers typically buy gold for gift-giving ahead of the Lunar New Year holiday on Feb. 19-20, but buying is likely to slow during and just before the break, traders said."With Chinese New Year nearly here, the buying activity would have mostly concluded so don't expect much seasonal support from the Chinese at this point," Phillip Futures analyst Howie Lee said. Spot silver was up 2.1 per cent at $17.04 an ounce. Palladium was unchanged at $781.75 an ounce, while platinum fell 0.2 per cent to $1,217.95 an ounce.

Silvermic April contract slips
At 15:40 hrs MCX SILVERMIC February contract was trading at Rs 38285 down Rs 109, or 0.28 percent. The SILVERMIC rate touched an intraday high of Rs 38660 and an intraday low of Rs 38065. So far 28024 contracts have been traded. SILVERMIC prices have moved down Rs 660, or 1.69 percent in the February series so far. MCX SILVERMIC April contract was trading at Rs 38609 down Rs 98, or 0.25 percent. The SILVERMIC rate touched an intraday high of Rs 38963 and an intraday low of Rs 38404. So far 2531 contracts have been traded. SILVERMIC prices have moved down Rs 1690, or 4.19 percent in the April series so far. MCX SILVERMIC June contract was trading at Rs 39135 down Rs 29, or 0.07 percent. The SILVERMIC rate touched an intraday high of Rs 39383 and an intraday low of Rs 38935. So far 42 contracts have been traded. SILVERMIC prices have moved down Rs 1673, or 4.10 percent in the June series so far.

Crude oil futures extend 2-day rally on falling U.S. rig count

Read more at: Crude oil futures extended gains on Tuesday, after rallying 11% over the past two sessions, as investors closed out bets on lower prices after data showed the number of U.S. oil drilling rigs had fallen by the most in nearly 30 years last week. On the New York Mercantile Exchange, crude oil for delivery in March rose as much as 2.57%, or $1.31, to hit a session high of $50.88 a barrel, the most since January 15, before trading at $50.64 during European morning hours, up $1.07, or 2.16%. A day earlier, New York-traded oil futures surged $1.33, or 2.76%, to settle at $49.57. West Texas Intermediate oil futures are up almost 13% in the three sessions including Tuesday, amid indications U.S. producers are pulling back on new production in response to low prices. U.S. oil prices lost $5.96, or 10.17%, in January, the seventh consecutive monthly decline. Elsewhere, on the ICE Futures Exchange in London, Brent oil for March delivery jumped $1.49, or 2.72%, to trade at $56.24 a barrel, after rising by as much as $1.73, or 3.06%, to touch $56.48, the highest level since January 5. On Monday, London-traded Brent rallied $1.76, or 3.32%, to end at $54.75. Brent prices ended January with a loss of $5.92, or 8.97%, also the seventh straight monthly drop. Industry research group Baker Hughes said last Friday that the number of rigs drilling for oil in the U.S. fell by 94, or 7%, to 1,223 last week, the lowest since October 2013. The number of oil rigs has declined in 13 of the last 16 weeks since hitting an all-time high of 1,609 in mid-October. London-traded Brent prices have fallen nearly 60% since June, when it climbed near $116, while WTI futures are down almost 58% from a recent peak of $107.50 in June, as the Organization of Petroleum Exporting Countries resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.

Copper hits 1-week high as rising oil prices, stock gains lift sentiment
Copper prices hit a one-week high on Tuesday, as a rally in oil and global equity markets lifted sentiment. On the Comex division of the New York Mercantile Exchange, copper for March delivery rose by as much as 4.4 cents, or 1.73%, to hit a session high of $2.534 a pound, the most since January 27, before trading at $2.530 during European morning hours, up 4.0 cents, or 1.61%. Futures were likely to find support at the $2.463, the low from February 2, and resistance at $2.543, the high from January 27. A day earlier, copper dipped 0.4 cents, or 0.18%, to settle at $2.490 a pound. Oil prices rallied nearly 11% over the past two sessions as investors closed out bets on lower prices after data showed the number of U.S. oil drilling rigs had fallen by the most in nearly 30 years last week. London-traded Brent prices rose 66 cents, or 1.2%, to $55.41 a barrel, while Nymex oil tacked on 33 cents, or 0.67%, to hit $49.90. Meanwhile, Asian stocks markets ended mostly higher as a surprise rate cut by Australia's central bank boosted sentiment. Shares in Shanghai rallied more than 2% after Monday's soft Chinese manufacturing data added to speculation that policymakers in Beijing may implement further stimulus measures to support the economy. Hopes that Greece's new government would be able to reach a compromise with its international creditors on the terms of its bailout also helped lift sentiment. Copper prices lost 33.1 cents, or 11.72%, in January as concerns over the global economic outlook and the impact on future demand prospects dampened the appeal of the commodity. Elsewhere on the Comex, gold futures for April inched up $5.80, or 0.45%, to trade at $1,282.70 a troy ounce, while silver futures for March delivery rallied 26.2 cents, or 1.52% to trade at $17.51 an ounce. Optimism over the health of the U.S. economy weakened after data on Monday showed that U.S. consumer spending fell at the fastest rate since September 2009 in December. Separate reports showed that U.S. construction spending rose less than expected in December, while manufacturing growth slowed. Later in the day, the U.S. was to release data on factory orders as investors look for further indications on the strength of the economy.

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