25 July 2015


Crude Oil Drops as US Drillers Add Rigs
Crude oil was attempting to rise, extending yesterday’s gains, but it currently dropped, demonstrating significant losses. Baker Hughes reported that US drillers added 21 rigs last week even if face of collapsing oil prices. The news followed the report on Wednesday that showed an unexpected increase of US oil reserves and pushed prices for WTI crude below the $50 level.
Of course, signs of economic slowdown around the world were also affecting crude negatively. Fuel and energy consumption is tied to economic growth, and worsening economic conditions mean smaller demand for the commodity, and this in turn leads to lower prices.
Futures for WTI crude oil dropped 0.85 percent to $48.04 per barrel as of  GMT on NYMEX. Contract for Brent crude declined 1.16 percent to $54.63 per barrel on ICE.
Gold Spread movement,The calendar spread of Comex gold continued to slide and now standing at 0.3 levels. Indian MCX Spread for Aug-Oct stands at 217 levels.

Silver futures are expected to trade on a negative noted during the day moving in line with gold market. Weakness in base metals segment is also likely to weigh on the market. The gold silver ratio is moving in a band of 73.50 to 74.50 levels.As on Friday morning, Comex silver futures made an intraday low of $14.43 per ounce.

18 July 2015

Precious Metals Plunge on Friday

Platinum was not the only precious metal to plunge on Friday. Gold, silver and palladium also ended the trading session with losses. The main reason for the drop was economic data from the United States.
The data revealed that inflation in the USA was steady last month. The housing report was even more positive, showing that the number of housing starts and building permits exceeded market expectations. The only negative news was the unexpected slump of the consumer sentiment index.

On Thursday, spot gold prices hovered near its lowest level since March and declined by 0.4 percent to close at $1144.7 per ounce. Federal Reserve Chair Janet Yellen reiterated that a U.S. interest rate increase is likely this year, buoying the dollar at bullion's expense.
On the MCX, gold prices declined by 0.3 percent to close at Rs.25771 per 10 gms.
Spot silver prices declined by 0.8 percent on Thursday to close at $15 per ounce. The fall in silver prices is in line with declining gold prices and the strengthening dollar index.
On the MCX, silver prices lost its value by 0.57 percent to close at Rs.32582/kg.
Crude Oil
On Thursday, WTI oil prices declined by 1 percent while Brent oil prices rose by 0.8 percent after a power outage shut production at Britain's largest oilfield and as the August contract approached expiration.
On the MCX, oil prices declined by 1 percent to close at Rs.3255 per barrel. 
Natural gas
NYMEX natural gas prices declined by 1.62 percent on Thursday to close at $2.85/ MMbtu while MCX gas prices also lost its value by 2.1 percent to close at Rs.181.40

11 July 2015


Gold scaled higher on Friday, moving further away from a four-month low, as the euro rose on signs of progress in debt-hit Greece's efforts to secure fresh funding. But weak physical demand in top consumers China and India capped price gains, with gold still sold in India at a discount to the global benchmark. 
Crude oil sank on Friday as traders were still digesting the data that showed an unexpected increase of US oil inventories. Stockpiles of crude were up 2.4 million to 465.4 million barrels last week instead of falling by 1.9 million as analysts had predicted. Moreover, the number of US oil rigs increased by 12 to 640 this week after 29 consecutive weeks of decline. August futures for delivery of WTI crude oil slumped 2.48 percent to $55.52 per barrel as of 22:11 GMT on NYMEX today. Contract for Brent crude tumbled as much as 2.82 percent to $60.32 per barrel on ICE.
Natural gas demonstrated losses as well even though yesterday’s supply report from the Energy Information Administration was relatively supportive for the commodity. The EIA reported that US reserves of gas increased by 69 billion cubic feet, trailing analysts’ forecast of an increase by 74 billion. Still, futures for natural gas slid 1.84 percent to $2.77 per million British thermal units on NYMEX today.