Commodity World 08-07-2014


MCX Gold Aug 2014
Gold settled up 0.34% at 27557 but gains remained limited as Thursday’s upbeat U.S. employment data continued to lend support to the U.S. dollar. The U.S. Department of Labor said non-farm payrolls rose by 288,000 last month, easily surpassing expectations for an increase of 212,000. The previous month’s figure was revised up to a gain of 224,000 from a previously reported increase of 217,000. The unemployment rate ticked down to a four-and-a-half year low of 6.1% from 6.3% in May. The upbeat jobs report fuelled optimism over the strength of the labor market and bolstered the outlook for the broader economic recovery. Separately, the Institute of Supply Management said its non-manufacturing purchasing manager’s index fell to 56.0 last month from a reading of 56.3 in May. Trading volumes remained thin on Friday, as U.S. markets were to remain closed for the fourth of July holiday. A stronger U.S. currency makes dollar-denominated assets like gold more expensive for foreign investors. But gold still looked set to post its fifth straight weekly gain, although a small one, as tensions in the Middle East and Ukraine supported prices at the start of the week. U.S. employment growth jumped in June and the jobless rate closed in on a six-year low, providing evidence of economic growth heading into the second half of the year. Technically market is under fresh buying as market has witnessed gain In open interest by 4.97% to settled at 8701 while prices up 93 rupee, now Gold is getting support at 27473 and below same could see a test of 27390 level, And resistance is now likely to be seen at 27617, a move above could see prices testing 27678.

MCX Silver Sep 2014
Silver settled up 0.45% at 45048 as market remained in the range for entire day as strong U.S. jobs data and record highs on Wall Street dent the precious metal’s safe-haven appeal. The market weakened a bit after the ADP national employment report for June came in at up 281,000, which beat most market expectations. The stronger ADP jobs report sets the table for an upbeat reading for the Labor Department’s employment report Thursday. The non-farm payroll employment figure of that report is forecast to come in at up 215,000 in June. The positive data spelled trouble for gold’s recent rally, which has seen prices rise 6% from last month’s lows after the Federal Reserve said it would keep rates at rock-bottom levels for as long as possible. A strong U.S. economy could force the Fed to reconsider its pledge and raise rates sooner than expected, hurting gold, which yields nothing and costs money to hold. An upsurge of violence in Iraq and Ukraine have also buoyed the metal, as some traders gravitate to gold in times of economic and political uncertainty, believing it will hold its value as other assets fall. This year as the Federal Reserve said it will keep interest rates low for a considerable time after ending bond purchases, while unrest in Iraq and Ukraine spurred demand for a haven. The central bank trimmed purchases for a fifth consecutive time, to $35 billion, at its June meeting. Technically market is under fresh buying as market has witnessed gain in open interest by 0.13% to settled at 7782, now Silver is getting support at 44867 and below same could see a test of 44687 level, And resistance is now likely to be seen at 45203, a move above could see prices testing 45359.

Related Articles:

StriveBlue Home|Poompugar Shoppings