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Weekly Research Report 22.10.2016
Research desk +91 8220333324
Ekarup
GOLD
Gold falls on dollar strength; set for first weekly gain in four
Gold fell slightly on Friday as the dollar strengthened, but was on track for its first weekly gain in four weeks on steady physical buying from China and exchange-traded funds.
Spot gold was down 0.2 per cent at $1,263.36 an ounce at 0656 GMT. It was headed for a weekly gain of 1 per cent.
"Gold is well supported at $1,250 and everyone is waiting for the elections and the prices are just moving according to the dollar," said Yuichi Ikemizu, head of commodity trading at Standard Bank in Tokyo.
An interest rate hike by the US Federal Reserve has been already factored in the prices, Ikemizu said.
Silver
Silver futures decline 0.38% on weak global trend
Silver prices were down by 0.38 per cent to Rs 42,758 per kg in futures trade today as participants trimmed positions, tracking a weak trend overseas.
At the Multi Commodity Exchange, silver for delivery in far-month March next year declined by Rs 164, or 0.38 per cent to Rs 42,758 per kg in business turnover of 60 lots.
Likewise, the metal for delivery in December contracts traded lower by Rs 156, or 0.37 per cent to Rs 41,840 per kg in 867 lots.
Analysts said offloading of positions by traders, tracking a weak trend overseas, mainly kept pressure on silver prices at futures trade.
Copper
Muted demand drag down copper futures by 0.34%Copper prices drifted lower by 0.34 per cent to Rs 318.10 per kg in futures trading today as speculators cut down their positions, tracking a weak trend at spot market on sluggish demand.
At the Multi Commodity Exchange, copper for delivery in February next year moved down by Rs 1.10, or 0.34 per cent, to Rs 318.10 per kg in business turnover of 198 lots.
On similar lines, the metal for delivery in November contracts traded lower by 90 paise, or 0.29 per cent, to Rs 311.15 per kg in 10,935 lots.
Analysts said offloading of positions by traders on the back of subdued demand from consuming industries in the spot market, mainly influenced copper prices at futures trade
CrudeOil rises on Russia's output freeze commitment
Oil edged higher on Friday as Russia reiterated its commitment to joining a producers' output freeze to stem a two-year slide in prices, but a strong dollar capped the gains.
Global benchmark Brent crude futures were 44 cents higher at $51.82 a barrel at 1132 GMT.
U.S. West Texas Intermediate (WTI) crude was trading at $50.95 a barrel, up 32 cents from its last settlement.
Russian Energy Minister Alexander Novak said on Friday an oil production freeze agree ..
The Organization of the Petroleum Exporting Countries will hold a meeting on Nov. 30 to find common ground on capping output. This is expected to work out how each member country will contribute to a freeze.
LeadLead futures shed 0.29% on muted spot demand
Lead prices were down 0.29 per cent to Rs 135.50 per kg in futures trading today as participants reduced their exposure, triggered by subdued demand from consuming industries in the spot market and weak global cues.
At the Multi Commodity Exchange, lead for delivery in November month declined by 40 paise, or 0.29 per cent to Rs 135.50 per kg in business turnover of 24 lots.
Likewise, the metal for delivery in current month contracts shed 25 paise, or 0.19 per cent to Rs ..
Marketmen said the weakness in lead futures was due to a sluggish demand from battery-makers at the domestic markets, apart from weak global cues after China's exports unexpectedly declined, raising global demand outlook
Zinc. Zinc futures
remain weak, shed 0.62% on low demand
Falling for the second straight day, zinc prices eased further by 0.62 per cent to Rs 151.40 per kg in futures trade today as speculators engaged in reducing their positions amid subdued demand from consuming industries at spot market.
At the Multi Commodity Exchange, zinc for delivery in October month weakened by 95 paise, or 0.62 per cent to Rs 151.40 per kg in business turnover of 8,621 lots.
Likewise, the metal for delivery in November contracts traded lower by a similar margin to Rs 152.10 per kg in 497 lots.
Analysts said the weakness in zinc at futures trade was mostly attributed to sluggish demand from consuming industries at domestic spot market.
Nickel
Nickel futures remain weak on low demand
Nickel prices fell further by 0.84 per cent to Rs 686.10 per kg in futures market today as speculators engaged in reducing their positions, taking negative cues from spot market on tepid demand from consuming.
At the Multi Commodity Exchange, nickel for delivery in November month fell by Rs 5.80, or 0.84 per cent to Rs 686.10 per kg in business turnover of 984 lots.
Similarly, the metal for delivery in October month contracts moved down by Rs 5.40, or 0.79 per cent to Rs 680.40 per kg in 8,321 lots.
Market analysts said trimming of positions by traders owing to slackened demand from alloy-makers in the physical market mainly kept nickel prices at lower at futures trade.
AluminiumAluminium futures soften 0.96% on profit-booking
Aluminium prices declined by 0.96 per cent to Rs 108.40 per kg in futures trade today as traders booked profits at prevailing levels, driven by easing demand in the spot market amid weak trend overseas.
At the Multi Commodity Exchange, aluminium for delivery in far-month November fell by Rs 1.05, or 0.96 per cent to Rs 108.40 per kg in business turnover of 353 lots.
Similarly, the metal for delivery in October contracts traded lower by 85 paise, or 0.78 per cent to Rs 107.60 per kg in 2,920 lots.
Market analysts said besides profit-booking by participants, fall in demand from consuming industries in the spot market and a weak trend overseas, led to decline in aluminium prices at futures trade.
