COMMODITY MARKET UPDATE FOR OCT 24, 2016
Gold futures closed higher in the domestic market on Friday as uncertainty surrounding the outcome of the U.S. election and the timing of Federal Reserve’s next interest-rate hike helped to lift investment interest in the yellow metal despite some strength in the U.S. dollar.
Currently, Fed futures trading indicate that a solid chance for a December move remains priced in to trading. Precious metals, which don’t offer a yield, can see demand diminish compared with investments that bear a yield in a rising-rate climate.
At the MCX, gold futures for December 2016 contract ended at Rs 29963 per 10 grams, up by 0.18 per cent, after opening at Rs 29,850, against a previous close of Rs 29,910. It touched the intra-day high of Rs 29,975.
Crude oil futures closed higher in the domestic market on Friday amid growing expectations that major crude producers will strike a firm deal late next month to curb output.
Russia had expressed interest in the past in collaborating with OPEC in a production cut but the lack of a firm and clear commitment from Moscow is making some people in the industry jittery. Without Russia’s participation, OPEC’s plan to cut production by 200,000 to 700,000 barrels a day could flop because members wouldn’t want to cut their own production in fear they will lose market share to non-OPEC producers.
At the MCX, crude oil futures for November 2016 contract closed at Rs 3409 per barrel, up by 0.29 per cent, after opening at Rs 3390, against a previous close of Rs 3399. It touched the intra-day high of Rs 3424.