Commodity Market Updates for October 5, 2016
Gold trading range for the day is 29336-31256.Gold dropped as a stronger dollarand signals that Fed might be closer to raising interest rates this year drove investors out of the precious metal.Feds Evans said he would be fine with raising U.S. interest rates by year end if U.S. economic data continued to come in firm.Positive economic data usually puts pressure on gold prices as it increases expectations of a U.S. interest rate hike.
Silver trading range for the day is 40990-46040.Silver dropped weighed down by a stronger U.S. dollar following recent upbeat U.S. data continued to weigh on the precious metal.Feds Lacker that there was a strong case for raising interest rates, stoked expectations that the Fed will lift rates by year-end.The reports added to optimism over the strength of the economy after Fridays upbeatU.S. consumer sentiment data.
Crudeoil trading range for the day is 3198-3308. Crude oil remained supported as the oil production freeze deal by OPEC continued to boost investors’ confidence. However gains were seen limited due to a rise in Iranian exports which add to a global supply overhang. The American Petroleum Institute data showed that U.S. crude inventories likely fell for a fifth straight week, declining by 7.6 million barrels.
Soyabean trading range for the day is 3173-3277.Soyabean prices ended with losses as arrivals are expected to pick up in a fortnight, weighing on prices.Soybean production is anticipated to be higher this year thanks to conducive weather conditions.About 68% of the US soybean crop is dropping leaves which down from 69% during the corresponding period last year.At the Indore spot market in top producer MP, soybean dropped -34 rupee to 3210 rupee per 100 kgs.
Aluminium trading range for the day is 110.1-111.9.Aluminium prices ended with small losses tracking weakness in other base metals as the dollar strengthened.A flurry of data from China in coming weeks is expected to point to modest improvement in the economy in the third quarter.Technically market is under long liquidation as market has witnessed drop in open interest by -3.05% to settle at 3048.