10/07/2010 06:23:00 PM
Your Advisor
Commodity Metal
Gold continues to climb. Indications that the Bank of Japan will join the Fed in additional quantitative easing have set the metal alight. Our bullish view on gold into 2011 remains but after the performance since last week combined with what we see in the physical market dampens our short term optimism. Gold support is at $1 320 and $1 302. Spot gold prices rallied yet again today, maintaining their northwards journey. The yellow metal prices breached the $1350/oz mark and were trading at $1357/oz till 3.45 pm IST. Spot gold prices touched a new record high of $1364/oz in the Asian trade today. The US Dollar Index (DX) continued to deteriorate against a basket of six currencies and was trading at 77.19 in the afternoon trade today. The DX – a gauge against a basket of currencies touched a fresh eight month low of 77.06 today. This factor supported gold prices as the yellow metal has the tendency of trading inversely to the greenback. Moreover, financial markets were also trading on a mixed note today which further boosted gold prices.
MCX Copper futures moved in a tight range today though a moderately weak undertone in world equities ensured that the metal does not extend its latest winning spree. Asian stocks ended mostly lower today as investors took a wait and watch approach ahead of the key economic reports from the world's advanced economies and some profit booking took place in select indices.
Commodity NCDEX Trend
JeeraIn long term (December onwards), Jeera prices will depend on the demand from the overseas and domestic buyers and sowing progress in the major jeera growing areas particularly Rajasthan and Gujarat. Spread between October and November contract is at Rs.115 as compared to Rs.108 the previous day.
Soya Oil
NCDEX October refined soy oil futures closed higher on account of improved demand ahead of festivals. Firm overseas market due to strong demand of edible oil in the world and higher prices of crude oil also added bullish market sentiments on biodiesel concern. Spread between NCDEX and MCX October contract is Rs 0.20 against previous day of Rs -0.15 per 10 Kg. CBOT December soy oil futures ended lower at $ 43.78 cents/pounds on Wednesday, down 0.04 cents/pounds as compared to previous close.
