5/29/2012 05:39:00 PM
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Commodity Live
The Rupee gave up gains in yesterday’s trading session as long-term economic risks came to the forefront. Overall strength in the DX also added pressure on the currency which had appreciated in early trade. The currency appreciated by 0.3 percent on Monday and closed at 55.19. But during intra-day the currency gained sharply and touched a level of 55.01 in yesterday’s trading session.
Gold Trend
Prices on the MCX also closed only around 0.2 percent higher and Rupee appreciation capped gains. In the near-term, gold prices will be largely influenced by the ongoing macroeconomic concerns and sharp increase in safe-haven demand may not be seen as investors are cautious over the yellow metal’s fate. Gold imports in India declined by 32.4 percent in 2011-12 and stood at 655 tonnes from 969 tonnes a year ago. Also imports declined in Q1 of 2012 by 68 percent to 90 tonnes compared to 283 tonnes in Q4 of 2011.
Crude Updates
Iran, which is second largest crude oil producer in the Organization of Petroleum Exporting Countries (OPEC), will face sanctions and an oil embargo from 1st July. The Persian Gulf nation has double its stockpile of enriched uranium and 20 percent of enriched uranium is purchased since February as per the International Atomic Energy Agency.
Supply-side concerns are expected to be supportive for oil prices as problems over Iran re-surface. But sharp gains will be capped as macroeconomic concerns continue and dollar strength will also affect upside.
