Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Commodities

| More

View On Gold: AnandRathi Commodities Ltd

Posted On: 2015-07-22 20:28:58

Mr. Ravindra Rao ( Head - Commodity Research, AnandRathi Commodities Ltd) on Gold:

Gold fell to its lowest since 2010 as a strong US dollar and a temporary end to the Greece debt crisis weighed on the bullion. The US dollar has proved to be the best performer against the major basket of currencies as the receding concerns over Greece and the Federal Reserve Chair Janet Yellen's strong intentions of a probable rate hike this year prompted investors to keep their focus on the safer currency, the greenback. According to Bloomberg, Fed Funds futures showed a 31% chance that the central bank would raise its benchmark rate in September from virtually zero. Higher bank rates cut the appeal of precious metals because the latter don't pay interest or give returns as other assets such as bonds and equities do. This has kept up the pressure on the yellow metal as commodities denominated in dollars tend to move lower with the dollar's appreciation.

Uncertainty about Greece came to an end as the debt-ridden country obtained a new lifeline from its European creditors. This has bolstered stocks around the globe as traders dumped safer assets such as gold and entered riskier ones such as equity.

A historic nuclear agreement between Tehran and the West was reached in Vienna. Under the agreement, restrictions imposed by the United States, the European Union and the United Nations are to be lifted in exchange for curbs on Iran's nuclear programme. The safe-haven status that has been built up in gold due to the financial and political crises has faded now and money has already started flowing into riskier assets such as equities.

Investment demand is weak. Domestic sentiment has turned extremely bearish as Federal Reserve chairperson Janet Yellen reiterated her hawkish outlook for an initial interest-rate hike this year, bringing down physical demand. Indian gold imports in June have dipped by almost 37% cent, to $1.96 billion. Imports of the precious metal were $3.12 billion in the same month of 2014. In May this year, imports were $2.42 billion.

Aside from the weak fundamental picture, technical's also point towards bearishness in the metal. $Spot Gold has penetrated the strong support of $1128/Oz, a neckline support of an Head and Shoulder pattern. It's a strong bearish formation and the target comes to $990/Oz. On the domestic front, considering the current rupee dollar conversion, gold price could fall in the range of Rs.24000-23500.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

Nickel supply woes to ease as Philippine audit clears 23 mines: Angel Commodities Broking

Technical selling activity hits aluminium: Angel Commodities Broking

Chana futures hit fresh low after relaunch last year: Angel Commodities Broking

Phillipines' fresh curbs to buoy Nickel: Angel Commodities Broking

Comfortable supplies in oil markets - will oil prices rally further? Angel Commodities Broking

Nickel rallies to the top: Angel Commodities Broking

Oil prices to correct, WTI headed towards $62: Angel Commodities Broking

Guar to trade higher in coming weeks: Angel Commodities Broking

MCX Aluminium hits record high on supply woes: Angel Commodities Broking

Cotton positive on export demand, reduce acreage: Angel Commodities Broking

Trump's hard line protectionism stance draws ire: Angel Commodities Broking

Robust imports, Steel curb extension boost metals: Angel Commodities Broking

Castor seed prices may correct due to arrival pressure: Angel Commodities Broking

US import curbs cushion Aluminium: Angel Commodities Broking

Jeera down on reports of higher production prospects: Angel Commodities Broking

Cotton may trade lower on anticipation of improved arrivals: Angel Commodities Broking

Correction in the metals pack - An opportunity for longs? - Angel Commodities Broking

OPEC and its output cap, the never ending story: Angel Commodities Broking

Nickel resumes its freefall after a brief rally: Angel Commodities Broking

Jeera hit all time high on export demand, diminishing stocks: Angel Commodities Broking

Edible oil slipping from 10 month high on record imports and higher oil seed production in 2016/17: Angel Commodities Broking

Sluggish Chinese economy hits base metals: Angel Commodities Broking

Will the rally continue for oil prices? Angel Commodities Broking

Battery demand prospects fuel Nickel to two-year high: Angel Commodities Broking

Castor seed heading for first monthly loss in 5 months in October: Angel Commodities Broking

Mustard prices likely to trade higher in coming month on improved demand: Angel Commodities Broking

Aluminium rules the commodity charts: Angel Commodities Broking

Zinc shines bright thanks to supply woes, China's RRR cut: Angel Commodities Broking

Weekly Agri-Commodities Update | Angel Commodities Broking

Double whammy of North Korea, S&P downgrade hits metals: Angel Commodities Broking

Early Chinese output cuts boost metals: Angel Commodities Broking

Weekly Agri-Commodities - Update - Angel Commodities Broking

Profit booking, weak Chinese data bother base metals: Angel Commodities Broking

Safe haven play back in gold: Angel Commodities Broking

Weekly Agri-Commodities Update - Angel Commodities Broking

Steel rally, Chinese demand prospects - win-win for base metals: Angel Commodities Broking

Turmeric surge on diminishing arrivals and improving demand: Angel Commodities Broking

Weekly Agri-Commodities Update - Ritesh Kumar Sahu - Angel Commodities Broking

Bull run in metals far from over: Angel Commodities Broking

Safe haven play back in precious metals, Oil falls on over supplied markets: Angel Commodities Broking

Weekly Agri Commodities Update: Angel Commodities Broking

Castor Prices surge on higher exports, crop damage: Angel Commodities Broking

Steel rally pushes base metals to new highs: Angel Commodities Broking

Oil loses its shine this week, Non farm payrolls the focus tonight: Angel Commodities Broking

Weekly Agri - Commodities Update: Angel Commodities Broking

Guar prices surge on good exports and heavy rains: Angel Commodities Broking

Nickel jumps to highest since April'17: Angel Commodities Broking

Fearing record imports, Pepper hit lower circuit on MCX and NCDEX on debut: Angel Commodities Broking

DX nosedive to 11-month lows; base metals rejoice: Angel Commodities Broking

Weekly Agri-Commodities Update: Angel Commodities Broking



Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2018