7/06/2011 05:18:00 PM
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Commodity News
Yesterday Euro fell against the U.S. dollar after showing a rally for six trading days and fell by 0.8 percent to close at $1.4422 from $1.4539 on 4th July, 2011. What led to the fall was credit rating downgrade of Portugal by Moody’s Investor Service in the later session of the trade. The long term government bond ratings were lowered to Ba2 from Baa1 and the outlook was kept negative on concerns the country will need to follow Greece in seeking a second bailout.
Manufacturing activity in U.S. showed signs of recovery as Factory orders rebounded in May, 2011.
Gold Live
COMEX Gold Aug futures pared their prior day losses yesterday and rose by 2.03 percent to close at $1,512.7 per troy ounce from $1,482.6 per troy ounce on 1st July, 2011. Apart from renewed worries coming from Greece what also prompted investors to park funds in the safe haven assets were deteriorating credit outlook for Chinese Banks. The credit downgrade of Portugal by Moody’s Investor’s Service also supported the safe haven appeal for the yellow metal.
Spot gold declined 0.2 percent today mainly on the back of dollar strength and touched an intra-day low of $1511.90/oz till 4.30 pm IST. But sharp decline was cushioned due to China’s step to curb inflation and choppy sentiments in the global markets. On the MCX, gold gained around 0.2 percent and was hovering at `22013/10 gms.
Investment demand for the metal however continued to remain muted yesterday as holdings at SPDR Gold ETF remained unchanged yesterday.
Crude Oil Trend
NYMEX Crude Oil Aug futures pared their prior day declines and rose by 2.05 percent to close at $96.89 per barrel yesterday from $94.94 per barrel amid and an upgraded price forecast next year by leading brokerage house and continued strong growth in global demand coupled with a rebound in U.S. Factory orders in May, 2011.
Meanwhile the U.S. EIA is expected to show a decline in the Crude oil inventories tomorrow which also supported the prices of the Black gold. Crude oil prices witnessed downside pressure mainly on account of China’s step to control the country’s inflation along with a stronger dollar. Concerns with regard to Euro Zone debt crisis which reduced risk appetite globally also exerted pressure on oil prices. MCX crude slipped 0.6 percent and touched an intra-day low of `4293/bbl till 4.30 pm today
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