The rupee soared 42 paise to 66.18 against the US dollar in early trade on increased selling of the US currency by exporters and banks along with higher foreign inflows following BJP’s booming win in Uttar Pradesh. Further, industrial production expanding by 2.7% in January also supported the rupee.
Meanwhile, Crude oil slides Near Rs 3200 Levels On Multi Commodity Exchange. WTI Crude oil has dropped below USD 50 for the first time since in nearly three months following heavy US inventories and selling pressure in major industrial commodities.
US commercial crude supplies have grown for nine consecutive weeks, reaching a record 528.4 million barrels last week, as per the US Energy Information Administration. WTI futures are currently trading just above USD 48 per barrel. MCX Crude dropped 0.77% yesterday to close around Rs 3,200 per barrel.
Gold is trying to edge up after the recent slip. A near 2-month low around USD 1200 per ounce seems to be working for the metal. MCX Gold closed down 0.45% at Rs 28, 238 per 10 grams yesterday, seeing another drubbing after the weekend.
Gold prices slipped lower on Friday, since the U.S dollar recovered moderately from losses posted in the previous session, despite the ongoing geopolitical concerns expected to support safe-haven demand. In the New York Mercantile Exchange’s Comex division, gold futures for April delivery were down 0.28% at USD 1,238.05. The April contract ended Thursday’s session 0.69% higher at USD 1,241.60 an ounce. However, the dollar regained some ground on Friday, aided by recent upbeat data and positive comments by Federal Reserve Chair Janet Yellen.
Meantime, in Indian domestic stock market, Nifty50 closed at 8821.70 levels, up by 43.70 points while Sensex closed at 28468.75 levels, up by 167.48 points.
Gold was pressed in last session under comments from US Fed Chief Janet Yellen. The precious metal took a drop on 13 Jan 2017, sine rising equities clubbed with failure to hold above 200 day Exponential Moving Average hurt the metal.
Gold Prices had tested a 3-month high above USD 1240 per ounce last week before drifting lower. The counter also seen lack of buying as speculative fund demand remained thin. However, the metal is presently trading moderate level at USD 1227 per ounce. MCX Gold futures tested a low near Rs 28,950 levels on Tuesday and ended just above Rs 29,000 per 10 grams mark.
The Federal Reserve can hike interest rates at a gradual pace, Fed Chair Janet Yellen told lawmakers on Monday. She told, if the labor market continues to strengthen and inflation moves to the central banks 2% target, a further adjustment of the federal funds rate would likely be fitting. However, changes in fiscal policies could potentially affect the economic outlook.
Gold slipped on Monday as the dollar made stronger against the yen after Trump-Abe meet. Spot gold had slipped 0.31% to USD 1,230.22 per ounce, while US gold futures were down 0.36% at USD 1,231.3. The US dollar also found broad support in the wake of comments by Trump on Thursday that he planned to announce an ambitious tax reform plan in the next few weeks, relighting expectations for big tax cuts. The dollar index was firm at 100.820.
In other precious metals, spot silver was mostly unaffected at USD 17.95 per ounce, after touching USD 18, the highest since Nov. 11, 2016, earlier in the session.
COMEX Gold soared to near 3-month highs on 3 February, since a break above USD 1200 per ounce extended. The commodity currently trades at USD 1223 per ounce, up about 1.25% on the day. The breakout is seeing solid after prices tested their 2-week low near USD 1185 levels earlier this week before recovering sharply. The MCX Gold April futures ended at Rs. 28,874 per 10 grams after hitting highs near Rs 29,080 per 10 grams on 2 Jan, adding 0.67% on the day.
The Finance Minister has proposed to trim down the existing rate of taxation for individual assesses between income of Rs 2.5 lakhs to Rs. 5 lakhs to 5% from the prevailing rate of 10%. This would reduce the tax liability of all persons below Rs 5 lakh income either to zero (with rebate) or 50% of their existing liability.
Gold prices edged up today, aided by a sluggish U.S economic data and as uncertainty over the outlook for U.S. policy under President Donald Trump stoked safe-haven demand. Spot gold had grown 0.22% to USD 1,193.88 per ounce in early trade, while U.S. gold futures were up 0.45% at USD 1,193.70.
Economic growth in the U.S weakened by more than anticipated in the final three months of 2016, as per Friday update. The Department of Commerce says GDP increased by 1.9% in the Q4 following a 3.5% rise in the Q3. Economists had expected GDP to climb by 2.2%. However, Indian Gold Demand is expected to come back to normal levels in coming 3 years, as per latest update from the WGC.