Commodity Weekly Report By Ways2Capital 27 Aug 2014


Posted August 27, 2014 by ways2capital

European markets were trading on a positive note yesterday on better than forecast profit reports from utility major EON SE and Swiss Life Holding AG.

 
MCX - WEEKLY NEWS LETTERS
International News
1. European markets were trading on a positive note yesterday on better than forecast profit reports from utility major EON SE and Swiss Life Holding AG. Asian markets ended higher and the US stock futures are trading in the green.
2. China’s Industrial Production fell to 9 percent in July from 9.2 percent in June. UK’s Claimant Count Change fell by 33.6K in July as against a decline of 39.5K in June. Unemployment Rate fell to 6.4 percent in June from 6.5 percent in May. Euro Zone’s Industrial Production fell by 0.3 percent in June as against a plunge of 1.1 percent in May.
3. Talks to end a month-long war between Israel and Gaza militants are "difficult", Palestinian delegates said, while Israeli officials said no progress had been made so far and fighting could soon resume.
4. The International Energy Agency (IEA) said that while the situation in several producer countries was "more at risk than ever," supplies were ample and the Atlantic Basin was facing a glut. OPEC output hit a five-month high of 30.44 million barrels per day (bpd) in July with a 300,000-bpd rise led by Saudi Arabia and Libya, the IEA said.
5. Production in Iraqi Kurdistan remains largely unaffected
6. U.S. and European Union sanctions on Russia over the crisis in Ukraine have not yet disrupted supply, but the IEA cautioned that the sanctions are expected to trim Russian demand.

Precious Metals
Gold prices edged higher on Tuesday on signs that the stand-off between Russia and Ukraine was hurting economic confidence in the euro zone economy. Analyst and investor morale in Germany, Europe's largest economy, plunged in August to its lowest level in more than a year and a half as the crisis in Ukraine took its toll, the ZEW monthly survey showed.
While geopolitical tension has inspired some sporadic investment buying, gold has not enjoyed much physical demand. In top consuming region Asia, demand has been sluggish after a record year in 2013. Also, investors have been cutting positions in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund. In the Indian Markets, gold prices rose by 0.34 percent on Friday. Gold prices touched an intraday High of 28891/10gms and closed at 28730/10gms.
Silver prices eased further on Tuesday in Asia following the U.S. lead as support from tensions in the Middle East and Russia-Ukraine eased on prospects for negotiations in both regions. In the Indian Markets, silver prices fell by 0.61 percent taking cues from International Silver prices. Further, Stronger Indian Rupee also added pressure to the prices. Silver Prices touched intraday low of 43555/Kg and closed at 43712/Kg
We expect gold prices to trade on the mixed note as weaker Indian Rupee on the back of Inflation data coupled with Rise in Geopolitical tensions in Iraq and conflicts between Russia and Ukraine may upsurge the demand for safe haven. However, upcoming economic data from the US will be watched for the further improvement in the economy. Additionally, Physical demand has not been strong enough to support prices. In the Indian Markets depreciation in the Indian Rupee may support prices.

Base Metals
London copper fell on Tuesday to near six-week lows as improving supply and renewed tension between Ukraine and Russia combined with a summer lull to curb investors' appetite for risky assets. Industrial production data from China due today could give a clearer view about the health of the world's second-largest economy and the biggest consumer of copper.
Among other metals, nickel has scope for further gains as third-quarter industrial activity ramps up and China's stocks have diminished since Indonesia banned exports of nickel ore in January.In the Indian Markets copper prices fell by 0.43 percent taking clues from LME prices. MCX Copper touched an intraday low of 427.4/kg and closed at 427.9/kg
We expect base metal prices to trade on the mixed note ahead of industrial production data from China and major economic data from the United States, which should paint a clearer picture of the prospect for metals as the end of the year rolls around. Further, weaker economic data from Europe and China may continue to keep prices under pressure for lesser industrial demand. However, In the Indian Markets depreciation in the Indian Rupee may support prices.


Energy
Crude prices fell on Tuesday in wake of a bearish report from the International Energy Agency as well as perceptions that Iraqi oil exports will flow as normal despite an insurgency taking place in the country. The International Energy Agency earlier cut its 2014 global oil demand growth forecast by 180,000 barrels per day to 1.0 million due to lower‐than‐expected deliveries in the second quarter and the International Monetary Fund's weaker outlook for economic growth.
In the Indian Markets, crude oil price fell by 0.5 percent taking cues from NYMEX Crude oil prices. Further, appreciation in the Indian Rupee also added pressure to the prices. Crude oil prices touched an intraday low of 5945/bbl. and closed at 5981/bbl.
Natural gas futures rose on Tuesday as investors bet a heat wave making its way across the eastern U.S. will prompt households to ramp up their air conditioning. While showers and thunderstorms may cool off parts of the U.S. this week, a heat wave will hold its ground through the third week in August. Higher temperatures often fuel demand for more natural gas as households and business ramp up their air conditioners. In the Indian Markets, Natural gas prices rose by 1.19 percent. Natural Gas prices touched an intraday high of 246.8/mmbtu and closed at 245.8/mmbtu.
We expect crude oil prices to trade on the mixed note as couple of bearish reports from IMF and EIA as well as worries over oil disruption from Iraq eased due to ample supplies from other part of the country. Further, Stronger US Dollar may add pressure to the international prices. However, In the Indian Markets depreciation in the Indian Rupee may prevent sharp fall in the prices.
We expect Natural gas prices to trade on the mixed note. Forecast for showers and thunderstorms may lower the demand for air conditioning. Further, continuous rise in Natural Gas inventory and forecast of rise in supply/record production may also add pressure to the prices. In the Indian Markets depreciation in the Indian Rupee may add support to the prices.


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Categories Business
Tags bullion metal and energy , bullion trend , free mcx tips , gold silver tips , live mcx tips , mcx commodity advisory , mcx gold tips , mcx tips
Last Updated August 27, 2014