Commodity Market important Updates for 17 July 2017
Gold futures closed higher in the domestic market on Friday with the dollar losing ground against most currency rivals following disappointing economic data which indicated that US economic growth is not growing as previously anticipated. Yellow metal was under storm for last few sessions after hawkish Fed stance following a solid US jobs report issued late last week, which backed the argument for higher interest rates although likely not at a more aggressive pace than the go-slow approach the Fed has signaled. Still, the prospect for gold-negative interest-rate hikes had sent the yellow metal to their lowest level in about four months last week.
Rising real interest rates low the attractiveness of holding gold because the metal provides no yield, and entices investors to rotate into riskier assets like stocks. Higher rates may also boost the value of the dollar which usually moves in the opposite direction of the gold price.
Gold futures for August 2017 contract ended at Rs 27,990 per 10 grams, up by 0.55 %, after opening at Rs 27823 against a previous close of Rs 27,837. It touched the intra-day higher of Rs 28,073.
Silver futures closed high in choppy trade on the domestic market on Friday as participants maintained fresh positions following disappointing economic data which indicated that US economic growth is not growing as previously anticipated. Silver futures for Sept 2017 contract closed at Rs 36963 per kg, up by 1.02 %, after opening at Rs 36450, against a previous close of Rs 36590. It touched the intra-day higher of Rs 37244.
Copper futures were trading high during the morning trade in the domestic market on Monday as traders built up fresh positions. Analysts said, pick-up in demand from consuming industries in the spot market mainly supported the upside in copper futures.
Copper futures for August 2017 contract is trading at Rs 387.00 per kg, up by 0.87 %, after opening at Rs 385.95, against a previous close of Rs 383.65. It touched the intra-day high of Rs 387.7.
India would overtake the world’s second largest steel producer Japan in the next couple of years and the country has targeted to produce 300 million ton of steel by 2025-30, a senior Tata Steel official said as per the PTI report. India is currently producing 90 to 95 million ton of steel per annum against the world no.2 steel producer Japan, which produces around 103 million ton, said Dr T Venugopalan, Technical Advisor to Tata Steel Managing Director.
“India is all set to overtake Japan in next couple of years… The country has (also) targeted to produce 300 million tons of steel by 2025-30,” he said. Venugopalan was addressing participants at the Grand Finale of ‘Mind Over Matter’, an annual innovation challenge programme of the private steel major.
Stating that the steel sector has started improving, he said the sector contribute to one to 1.5 % in the country’s GDP. Venugopalan, however, said good quality coal was drying out in the country and some process was needed to improve low quality coal.
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