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Weekly Commodity: Commodities market got its first option contract in gold on the platform of MCX

SMC | 23 Oct, 2017  | Follow Author | Add to my Favourites 
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Weekly Commentary            


It was a historic and holiday shortened week for commodities market in India. Historic because after the launch of 14 years of Futures market in India, commodities market got its first option contract in gold on the platform of MCX on the auspicious occasion of Dhanteras. Heavy involvement of physical buying in gold and silver on the occasion of Dhanteras and Diwali cheered the bullion counter. Timely correction in gold and silver also encouraged physical buying. Gold prices fell, pressured by a firmer dollar but worries over geopolitical tensions in West Asia and on the Korean peninsula kept further losses in check. The dollar edged up against its peers, supported by a rise in Treasury yields following a report that US President Donald Trump was favouring a policy hawk as the next head of the Federal Reserve. Crude prices reignited once again. Oil settled higher on fighting in Iraq and tensions between the U.S. and Iran kept prices at their highest level in nearly three weeks. While the events have already triggered some crude-supply disruptions in the oil-rich area, Iraq has stated that any drop in crude production should be limited and temporary. Natural gas prices moved down. In industrial metals complex, it was a strong week for copper and nickel. Lead and zinc turned weak on profit booking whereas aluminium traded in a range. Copper futures surged on renewed optimism about the strength of the Chinese economy going into a crucial policysetting meeting of the country's leaders. The 19th National Congress of the Communist Party of China which opens on Wednesday will determine the economic goals for the country and could have a significant impact on copper and other industrial metals as authorities continue to tackle the country's pollution problems.

Good upside witnessed in guar on upside in crude prices amid firm trend at the spot markets. Rising of bets by participants coupled with restricted supplies from growing regions against rebound in demand in the spot markets, mainly supported the upside in guar seed prices in the futures market. Chana saw lower level buying. Oil seeds and edible oil counter performed weak to sideways on bearish cues from international market amid arrival pressure.

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SMC Research, founded in 1990, is India’s leading share and stock broker, provides a wide range of financial services and investment solutions. A blend of extensive experience, diverse talent and client focus has made us the 4th largest broking house in India(Source: Dun and Bradstreet, 2008). Over the years, SMC has expanded its operations domestically as well as internationally. Existing network includes regional offices at Mumbai, Kolkata, Chennai, Cochin, Ahmedabad, Jaipur, Hyderabad, Bangalore plus a growing network of 2100+ offices spread across 425 cities/towns in India.

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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor accept any liability whatsoever arising from the use of any of the above contents.

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