Indian Rupee: Edges Up On Improved Risk Sentiment

Indian Rupee: Edges Up On Improved Risk Sentiment 

The  rupees open lower today ( 05 march 2014 )

Rupees recovered on yesterday from its biggest down fall last 2 week.

The local market also bullish today 

today bullion market also goes up.................

Gold Slippery After $1400

Gold futures are trading on a slippery note after it breached above $1400 an ounce earlier in the Asia electronic session today. The gains in the oil futures are also supporting the sentiments for the metal today.
Gold futures for December delivery are trading down 2 cents at $ 1395.6 an ounce on the Comex division of the New York Mercantile Exchange. On Friday it surged 1.95% to settle the week at $1,397.40 a troy ounce. The metal may find resistance near $ 1420 levels in the near term.
On the week, silver future prices advanced 2.1%, the fifth straight weekly gain. Silver prices are up almost 24% since hitting a three-year low of $18.19 on June 28, placing it firmly in bull-market territory.
On Friday, it rallied to 11 week high after disappointing U.S. new home sales data dampened speculation the Federal Reserve will begin to taper its bond-buying program as early as September. Gold prices added 1.5% on the week, the third consecutive weekly advance. The precious metal has rebounded nearly 16% since hitting a 34-month low of $1,180.15 a troy ounce on June 28.
The minutes of the Fed’s July meeting published on Wednesday showed that officials were "broadly comfortable" with plans to scale back the bank’s USD85 billion-a-month stimulus program. However, policymakers remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate.
The domestic gold futures neared the all time high mark of Rs 32464 per 10 grams on 26th November 2012 due to the XXL drop in Indian Rupee. The metal has jumped more than 28% since hitting the 2 year low of Rs 24830 per 10 grams on 28th June 2013.
The Indian government has raised the gold import duty by scorching 8% so far this year to curb imports and raise capital inflows to relieve the grinding pressure on the rupee which hit a record low of 65.42 against the dollar this week. So far in August the Indian unit has lost nearly 8% of its value, hitting the low of 65.42 against the US dollar on 22 August.
In the week ahead, investors will be looking ahead to revised data on U.S. second quarter growth, as well as reports on the housing sector and consumer confidence. Fed is scheduled to meet September 17-18 to review the economy and assess policy. 

MCX Gold witnesses modest correction after latest gains

MCX Gold futures slipped slightly in the early moves, giving up after a massive rally in the Friday's session.

Gold futures got a boost on the disappointing jobs data, which put to rest recent sentiments that the Federal Reserve may consider tightening policy in the coming months.

The U.S. Bureau of Labor Statistics reported earlier the economy added 88,000 nonfarm payrolls in March, way below expectations for a gain of 200,000 and below the 268,000 jobs added in February.

The metal edged up at a ferocious pace following this, adding nearly 30 dollars in intraday moves.

The counter currently quotes at $1576.90, up $1 per ounce on the day. 

The US non farm data revealed that the private sector added 95,000 jobs last month, after an increase of 254,000 in February, missing expectations for a 209,000 rise.

The report also showed that the U.S. unemployment rate ticked down to 7.6 per cent in March, from 7.7 per cent the previous month, as more Americans left the labor force.

The news sent the dollar falling and gold rising on expectations for the Federal Reserve to keep monetary stimulus programs in place, including its USD85 billion monthly bond-buying program that weakens the greenback as a side effect.

The June COMEX gold futures had tumbled to 10 month low of $1539.4 earlier this week, however it jumped back to end the fortnight at $1575.9 an ounce.

It rallied to a one-month peak in March on worries about fiscal stability in Europe, as politicians scrambled to clinch a bail-out for Cyprus.

Fear that central banks' money-printing to buy assets will stoke inflation has been a key driver in boosting gold, which rallied to an 11-month high in October after the Fed announced its third round of aggressive economic stimulus.

The international gold prices are down nearly $80 from its last year's level as the US dollar has appreciated.

The June COMEX gold futures are trading at $ 1575.9 an ounce as on 5th April 2013 whereas last year the metal has been trading near $1650 an ounce levels.

The US dollar has gained nearly 2 per cent in April 2013 compared to the same period last year. 

There could be some upside resistance for the yellow metal after the massive array of gains seen on Friday.

The US dollar is quoting just under 1.3000 levels against the Euro, coming off its two-week low levels.

MCX Gold futures slipped as the Rs 29800 barrier yet again triggered a correction.

The counter quotes at Rs 29707, down Rs 60 per 10 grams on the day with 1 per cent drop in the open interest.

Gold updates

Gold futures kicked off the week on a weak note in Asia today after the commodity jumped to highest level in six weeks on Friday as the U.S. dollar came under heavy selling pressure amid hopes that a deal on an aid payment for Greece.
Most major Asia stock markets seesawed in Monday trading, though Japanese equities outperformed to hit a seven-month high as the yen weakened further against major rivals. Japan’s Nikkei Stock Average climbed 0.8% to a level not seen since late April as investors returned from a three-day weekend.
Chinese trading started the week on a muted note, with Hong Kong’s Hang Seng Index down 0.1%, and the Shanghai Composite index lower by 0.3%.
Gold futures for December delivery are trading down $3.1 at $ 1748.3 an ounce on the Comex division of the New York Mercantile Exchange. On the week, gold futures rallied 2.3%. It may find support near $1720 levels and resistance near $1775 levels.
In the coming week, market participants will be focusing on Monday’s meeting of the euro group of finance ministers to discuss unlocking Greece’s next aid installment. Traders will also monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the seven weeks left before the January 1 deadline.
MCX Gold December futures may open today’s session near Rs 32240 levels with support near Rs 32200 and Rs 32150 levels.

Gold Tips

Gold futures began week on strong note in Asia electronic trades today, after retreating 1% last week on ongoing fears over the looming fiscal crisis in the U.S. and growing tension in the Middle East.

December delivery gold futures are trading up $7.3 at $ 1722 an ounce on the Comex division of the New York Mercantile Exchange. The counter may find support near $1685 levels with resistance near $1740 levels in the near term.

Silver for December delivery fell 1.1% on Friday to settle the week at $32.30 a troy ounce. Earlier in the session, silver futures touched a one-week low of $32.02 a troy ounce. On the week, silver futures shed 0.7%.

Investors continue to remain concerned over the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1. Congressional leaders said talks with President Barack Obama on Friday to avert the fiscal crisis were "constructive."

There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the seven weeks left before the January 1 deadline.

Gold hit a one-week low of $1,704.55 a troy ounce on Thursday, after the World Gold Council said global demand for the precious metal dropped 11% in the third quarter.

In the coming week, market participants will be focusing on developments relating to the U.S.http://www.commoditytipsadvisory.com/ fiscal cliff, as well as Tuesday’s meeting of the euro group of finance ministers to discuss unlocking Greece’s next aid installment.

MCX December gold futures may open today’s session near Rs 31,670 levels with resistance near Rs 31700 -750 levels.

Gold Tips

MCX Gold December have surged in the in the early hours moves today, going up in tune with the ferocious gains in the COMEX Gold December as a signal of strong buying lifted the commodity to its three week highs. The COMEX Gold December added moving gains last night even as US stocks drop as traders eyed an conservatory of ultra loose US economic policy after President Barack Obama's re-election. COMEX Gold December are trading around its three week highs at $1737.50, up $11.40 per ounce on the day.

The US equities eased the past day in the middle of doubts about scary economic woes. The traders are now worrying about the US fiscal cliff, automatic tax hike and spending cuts amounting to $600 billion due to take effect early next year that could send the US economy back to downturn. This is boosting shareholder craving for safe-haven assets like gold.

The Euro zone slipped again the past day , continuously contrary complexity on rising moves among a string of weak economic data that continues to keep the Euro zone area in a attach of slowing growth and persistent debit reservations. The European Central Bank refrained from further motivation measures the past day and said it cannot do much more to help Greece and gave Spain none of the guarantee it wants that ECB bond buying will lower its borrowing costs.

Last Week:-

Gold Prices started the new trading week on an up move. Comex Gold future Prices rose reasonably higher the past day on some bargain hunting buying interest after Friday’s big sell off meeting, but rises remain limited by a stronger US money index that hit a fresh two-month high.

MCX Gold Tips

Stock Markets Weaken Gold Prices:

Unexpectedly weak results from Google dragged down equities on Friday, while the euro fell against the US Dollar, hurt by a perceived lack of progress on a Spanish bailout request. That weighed heavily on Gold Prices, which become more expensive for holders of other currencies when the US Dollar firms. The Google results were followed by other major U.S. companies, General Electric to McDonald’s Corp. and Microsoft Corp. reporting disappointing earnings results on Friday added pressure on World stock markets. The S&P 500 slipped for a second day after rallying 2.3% over the previous three sessions. With three weeks to go before the U.S. Presidential election there’s a bit of hesitancy to keep bets open. Markets are largely in a ‘wait and see’ mode at the moment, with elections in the United States and the transition of power in China happening early November. “Given the importance of China and the US in the global economy, we might not see strong positioning taking place in the next few weeks.