Commodity World 11-07-2014

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MCX Gold Aug 2014
Gold settled up 0.34% at 27613 as fresh inflows into bullion-backed funds indicated rising investor confidence the metal ahead of the release of the latest Federal Reserve minutes. The Fed may end its bond buying program after its October meeting if “certain economic conditions remain positive”, the minutes said. But the minutes also contained the central bank’s oft-repeated stance that U.S. inflation was expected to remain over the next few years at below the Fed target of 2 percent. Two Fed officials gave a relatively downbeat assessment of the pace of U.S. growth on Tuesday. Gold tends to benefit from such a view, as it suggests that the central bank may hold off on further reining in its gold-friendly stimulus policies. The world’s largest gold exchange-traded fund, New York-listed SPDR Gold Shares, reported a second straight session of inflows on Tuesday, taking its holdings above 800 tonnes for the first time since mid-April. Prices advanced amid concerns that recent U.S. data showing that the labor market is continuing to strengthen will not be enough to prompt the Fed to bring forward its timetable for raising interest rates. Official data late last week showed that the U.S. economy added a larger-than-forecast 288,000 jobs last month, while the unemployment rate ticked down to 6.1%, the lowest in almost six years. Technically market is under fresh buying as market has witnessed gain in open interest by 5.97% to settled at 9099 while prices up 94 rupee, now Gold is getting support at 27538 and below same could see a test of 27464 level, And resistance is now likely to be seen at 27692, a move above could see prices testing 27772.

MCX Silver Sep 2014

Silver settled flat as investors looked ahead to the release of the minutes of the Federal Reserve’s June policy meeting later in the day. Prices advanced amid concerns that recent U.S. data showing that the labor market is continuing to strengthen will not be enough to prompt the Fed to bring forward its timetable for raising interest rates. Official data late last week showed that the U.S. economy added a larger-than-forecast 288,000 jobs last month, while the unemployment rate ticked down to 6.1%, the lowest in almost six years. Overnight, the dollar traded largely lower as investors opted to go long on stocks after the Federal Reserve confirmed market expectations for monetary stimulus programs to end this year, likely in October. The Federal Reserve said in the minutes of its monetary policy meeting earlier that it should end its monthly bondbuying program by the end of this year, likely in October, which sent investors chasing stocks on sentiments that the economy is recovering. The Fed has gradually been trimming the amount of bonds it purchases by $10 billion a month, and by end of this year, the program should close if the Fed continues to taper on its current trajectory. While the labor market has shown some signs of improvement, markets remain unclear if recovery has been strong enough to prompt the Fed to hint that it may begin raising interest rates sooner rather than later. Technically market is under long liquidation as market has witnessed drop in open interest by -8.54% to settled at 7488 while prices down -36 rupee, now Silver is getting support at 44650 and below same could see a test of 44512 level, And resistance is now likely to be seen at 45011, a move above could see prices testing 45234.

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