Morning Report 23-09-2011



Spot gold prices fell sharply yesterday to $1741 an ounce after Fed reserve move to boostUSgrowth lifted the dollar which pressurized the Gold. The dollar index rose to seven month highs  of 78.13, after Fed’s decision heightened the appeal of shorter datedUSdebt and supported US dollar and gave an edge over other currencies.  Gold SPDR’s the world’s largest gold backed ETF holdings stood at 1252.21. Outlook: Gold is expected to trade in positive bias & later take cues from developments in Euro zone & US dollar.


Silver traded at $36.19 an ounce on Friday  in Asian trading. Silver prices fell more than 6% yesterday on concerns of major economies slipping into recession and significantly reducing the demand for the white metal. Chinese PMI data showed the manufacturing activity slowed down in September compared to August indicating the economy is slowing down along with US & Euro. Ishares silver trust, the world’s largest silver backed ETF holdings  decreased to 9868 tons on Thursday from 9898 tons on Wednesday.  Outlook: Silver is expected to take cues from US dollar.


U.S. crude prices plunged by 6%  on Thursday  after Fed reserve stated economic outlook remained weak and on weak manufacturing PMI released in major developed nations such as Europe & China. Tropical storm Ophelia  is moving towards Caribbean’s northern Islands of Antilles and any possible interruption to oil refineries in US has to be closely watched. Investors exited the risky assets on concern s of fears of global slowdown and demand for crude may come down as top consumers of oil are slowing down. Outlook:  Crude oil prices is expected to take cues from developments in Euro one & US dollar.


Copper prices plunged on Thursday to a one year  low of $7505 per metric ton and extended losses on Friday. In Shangai copper contract fell by 6% to 56940 Yuan per metric ton and reached daily limit . In the last two days copper has fell about 10%, its biggest fall since October 2008 and investors are selling the risky assets and anticipating the demand will be low after weak PMI data from China & Europe.   Outlook : Copper prices is likely to trade in negative bias  and take cues from developments in Euro zone & US dollar.


Yesterday Rubber futures on the National Multi-Commodity Exchange have closed with loss tracking the selloff in the broader base  selling in the asset classes globally.

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