VN Research & Consulting
 Like us on facebook  Follow us on twitter  Follow us on LinkedIn  IndiaNotes on Google Plus  IndiaNotes on Pinterest  IndiaNotes on Stumbleupon  Subscribe to our feeds


Stocks  A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Go
Feedback
You are here : IndiaNotes >> Market Action >> Fundamental

Weekly Commodity: Gold and Silver saw profit booking after a continuous four week upside

SMC | 31 Jan, 2017  | Follow Author | Add to my Favourites 
  • Rate this article
    (Average Rating 0.0 Based on 0 ratings)


Weekly Commentary

                 

Mixed trend was noticed in commodities space. CRB edged up marginally, closed near the level of 195. Furthermore, thin trading was witnessed due to celebration of Republic Day in India and Lunar New Year in China. Both gold and silver saw profitbooking after a continuous four week upside. Gold prices fell as a rally in U.S. equities offset support from uncertainty over the new U.S. administration's policies and a weaker dollar. The dollar slumped to seven-week lows, pressured by investors' concerns about U.S. protectionism after President Donald Trump gave the go-ahead to construction of a U.S.-Mexican border wall and prepared to impose some immigration curbs. Physical gold demand in India was weak due to higher prices, while Chinese demand ebbed ahead of the Lunar New Year holiday. The Dow closed atop the 20,000-mark for the first time overnight, boosted by solid earnings. Energy counter revived on weather issue, especially natural gas apart from strong equity market. Oil prices were higher by rally in the U.S. stock market, although gains were capped by plentiful supplies and bulging inventories in spite of efforts by producers to cut output. Oil's gains were held back by Wednesday's weekly U.S. inventory figures, which showed an increase of 2.8 million barrels last week in U.S. crude inventories to 488.3 million barrels, pointing to ample supply in the world's biggest market. Trading volume was thin ahead of the Chinese Lunar New Year Holiday. Nickel was the laggard in terms of the base metals' performance, and now so far in 2017, the metal has been under pressure. Copper futures climbed high amid worries over potentially tighter supply while the dollar wilted on concerns over U.S. President Donald Trump's protectionist policies.


In agri space, cotton counter traded flat with bearish bias on profitbooking at higher levels. China Cotton Index was flat as the market participants prepare for the Lunar New Year holidays. CPO was sluggish in BMD while traded up in Indian market. Indonesia will set export tax for crude palm oil (CPO) in February at $18 per tonne, up from $3 per tonne this month. The tax will be increased as the government's reference export price for crude palm oil is seen rising above a threshold of $800 per tonne. Spices performed weak except jeera, which crossed the 18000 mark.

 


  Read full report Click here to read the full report


About SMC
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.


For more information please write in to editor@indianotes.com

 
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 IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.



Technical Calls

What are technical calls?

Other Articles


Have a question?