Ways2Capital Commodity Research Report 16 November 2015

Nov. 16, 2015 - PRLog -- MCX - WEEKLY NEWS LETTERS

INTERNATIONAL NEWS

✍ PRECIOUS METAL

• U.S. retail sales rose less than expected in October amid a surprise decline in automobile purchases, suggesting a slowdown in consumer spending that could temper expectations of a strong pickup in fourth-quarter economic growth. The Commerce Department said retail sales edged up 0.1 percent last month after being unchanged in both September and August. Economists had forecast sales increasing 0.3 percent.
• Multiple attacks in Paris on Friday killed more than 130 people, prompting France to launch air strikes in Syria against Islamic State, which claimed responsibility for the attacks.
•  University of Michigan's consumer sentiment index rose to 93.1 inearly November from a reading of 90.0 in October.
•  Data on Friday showed a second straight monthly decline in producer prices as the cost of services fell. Still, the soft inflation and signs of slowing consumer spending are unlikely to deter the Federal Reserve from raising interest rates next month, economists said.

BULLION

Indian Gold and Silver prices slumped on Thursday, trading weak overseas prices. December Gold futures prices ended a very choppy U.S. trading sessionlower and hit a fresh contract low Thursday. December Silver futures pricesclosed nearer the session low and hit another 10-week low on Thursday, The Dollar remained higher against the other major currencies on Thursday, still hovering close to a seven-month peak after data showed that U.S. jobless claims held steady at a two-month high last week, but remained in territory consistent with a strengthening labor market.

However, the Dollar trimmed gains after Fed Chair Janet Yellen gave no indications on the nearterm outlook for the U.S. economy or monetary policy in a speech on Thursday. She added that The U.S. Federal Reserve must weigh the effects of post-crisis financial regulations and new channels through which policy affects markets as it prepares to raise interest rates. Yellen said the U.S. central bank also must weigh the disadvantages of its policy actions in light of new tools meant to help the Fed raise rates. Fed "policymakers should be mindful of new channels for monetary policy transmission that may have emerged from the intricate economic and financial linkages in our global economy that were revealed by the crisis," she said in prepared remarks.  The Euro weakened against the Dollar after European Central Bank President Mario Draghi said the central bank "will re-examine the degree of monetary policy accommodation" at its December meeting. Speaking to the European Parliament, Draghi said inflation dynamics had somewhat weakened and that a "sustained normalization" of inflation could take longer to achieve than thought. The World Gold Council has reported demand for gold in the third quarter rose by 8% worldwide. The report added that demand in China soared by 70%, while demand in India rose 6% in the quarter. China and India are the two largest gold importers in the world.

SPDR Gold Trust fund said its holdings fell 0.22% to 661.94 MT on Thursday from 663.43 MT on Wednesday. In terms of ounces, holdings fell to 21,282,135.35 ounces from 21,329,996.1 ounces. Holdings Silver Trust have remained unchanged on Wednesday from Tuesday. COMEX Gold Trust (IAU) Total MT in Trust: 159.85 MT: -0.45 MT change from yesterday’s data. Silver Trust (SLV) Total Tonnes in Trust: 9,756.57 MT: No change from yesterday’s data. 

COPPER

Copper prices slid to a six-year low on Friday as worries about economic and demand growth in top consumer China escalated and abundant supplies reinforced expectations of surpluses. Some producers have cut output and others are planning to cut, but analysts say more will be needed before participants start to believe that a more balanced market is in sight. Data this week showed China's industrial output was at a sevenmonth low in October and investment expanded at its weakest pace since 2000. However, one thing that could trigger another attempt at the downside is a higher U.S. currency, which makes dollardenominated commodities more expensive for non-U.S. firms. Expectations of higher U.S. interest rates after the Federal Reserve's Dec. 15-16 meeting are growing, keeping the dollar strong and adding to pressure on commodity prices.

ENERGY

Natural gas futures gained over 4 percent on Friday on colder weather forecasts expected to boost heating demand over the next two weeks and a slightly smaller-than-projected storage build. Despite Friday's gain, the front-month ended down for the first week in three. Traders have warned for weeks that futures were vulnerable to a shortcovering rally if the weather suddenly turned colder because speculators could quickly exit big bearish bets. Over the past several weeks, hedge funds have built up net short positions on the NYMEX and IntercontinentalExchange to the highest levels in at least five years as they bet prices - recently at a three-year low - had further to fall. Traders said prices for the rest of the winter and all of 2016 were depressed as storage levels were at all-time highs, producers continue to pump record amounts of gas out of the ground, and forecasts call for weaker-than-normal heating demand this winter due to warmer-thannormal weather expected from the El Nino weather pattern.


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