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Weekly Commodity: Some strange and quick moves were witnessed in the bullion counter

SMC | 06 Mar, 2017  | Follow Author | Add to my Favourites 
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Weekly Commentary


In the week gone by, CRB slowly lost its strength on fall in energy and bullion counter. Some strange and quick moves were witnessed in the bullion counter. Gold and silver moved in a range but on Thursday both saw a sharp fall in the prices, comparatively silver lost the most. There is a concern in the market that in the month of March, Fed may go for another rate hike. Meanwhile, dollar index saw a very sharp jump which stole the shine of commodities. $1260 proved a strong resistance for gold in Comex. The metal also usually moves in the opposite direction of the US dollar. In heavy volumes, gold suffered its worst trading day of 2017 on Thursday as the metal comes under pressure from a rise in the US dollar and a looming interest rate hike in the US. Silver fall more than 1000 r in mcx and closed near 42180. Energy prices cooled off on swelling inventories issue. U.S. crude inventories rose to a historical high, increasing by 1.5 million barrels to 520.2 million barrels. The build was largely driven by significant imports from Saudi Arabia, Iraq, and Canada, as well as strong domestic production, which rose above 9 million barrels for the second straight week. Natural gas prices rebounded, however the bias remains to the downside, due to the recent increases in open interest during declines in price. A three-week-long strike at Chile's Escondida, the world's biggest copper mine, turned ugly on Wednesday when a group of striking workers blocked a highway, provoking confrontations with the police. It gave reason to the copper to close in positive territory. Aluminum and lead prices closed up too whereas zinc and nickel were bearish.

In agri, it was a strong week for oil seeds and edible oil complex on firm international trend. oil content is good so crushers are showing interest in buying at lower levels and the oil mills, which were closed in the last two months due to disparity amid higher mustard seed rates, has now started operations as the prices are now has dropped to attractive level. Wheat prices saw deep fall on higher new crop arrivals. In spices, jeera and cardamom closed down while coriander prices improved on firm trend in the spot market. Cotton counter gathered some strength in futures market, taking cues of firm trend in the spot market.

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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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