Gold Hits Three Week High Before Correcting.
Gold futures extended gains as a break above $1500 per ounce mark helped lift the momentum for the metal. Weakness in US dollar offered a good support to the commodity last week after the Federal Reserve cut interest rates as expected and signaled it was unlikely to move in either direction any time soon as inflation remains muted. The dollar index fell to one and half week low of 97. COMEX Gold futures hit a three week high of $1519 per ounce before easing as rising risk appetite took its toll. Gold eased as the US equities hit record on Friday. MCX Gold futures closed at Rs 38315 per 10 grams, down 0.68% on the day.India’s gold market is one of the largest in the world, but it lacks organisation, structure and trust. But that is beginning to change with numerous transformational initiatives underway. A robust bullion banking industry could support and accelerate that shift – inspiring trust, bolstering innovation and driving growth, the World Gold Council noted in a latest update. The Indian gold spot exchange is expected to launch in the near future, a key moment in the development and formalisation of the domestic gold market.
Copper Gains On Supportive Economic Cues.
Copper rose in last session. US stocks surged on supportive economic cues. The Nasdaq and the S&P 500 hit new record closing highs. COMEX Copper closed at $2.66 per pound, up 0.91% on the day. MCX Copper futures closed at Rs 438.80 per kg, almost unchanged on the day after recovering from a low under Rs 437 mark. The US Labor Department said non-farm payroll employment surged by an impressive 128,000 jobs in October. The latest data also showed substantial upward revisions to job growth in September and August, with revised data showing employment jumped by 180,000 jobs and 219,000 jobs, respectively. The ISM said that US purchasing managers index or PMI edged up 48.3 in October from 47.8 in September. The US Commerce Department said construction spending surged by 0.5% to an annual rate of $1.294 trillion in September. China’s manufacturing sector logged its fastest expansion since early 2017 in October, data from IHS Markit showed Friday. The Caixin manufacturing PMI rose unexpectedly to 51.7 from 51.4 in September.
MCX Crude Oil Jumps 2% On Falling US Rig Count.
WTI Crude oil futures saw a massive bounce on Friday from one week low as record high US equities and falling US rig counts boosted the commodity. US oil and gas rig count fell again, according to Baker Hughes, continuing the downward trend with a drop of 8 rigs for the week, it marked ten decreases out of the last eleven weeks. The total oil and gas rig count now stands at 822, or 245 down from this time last year. The total number of active oil rigs in the United States decreased by 5 according to the report, reaching 691. The number of active gas rigs decreased by 3 to reach 130. Oil rigs have seen a loss of 183 rigs year on year, with gas rigs falling 63 since this time last year. WTI Crude soared 3.70% to end at $56.17 per barrel. MCX Crude oil closed added 2% to close at Rs 3931 per barrel.
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