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Gold futures are little changed since the morning as the floor trading remains shut on occasion of the Thanks Giving Day in US.

Since last few days gold has traded in a quite tight range as the as investors are clueless with regard to congressional leaders’ negotiations on the deficit reduction issue and unabated debt crisis in the euro zone.

An ounce of gold on COMEX division of New York Mercantile Exchange is trading up $5.5 at $ 1729.1 in early European session today.

COMEX division of the New York Mercantile Exchange will remain closed on Thursday on account of Thanksgiving Day and will close earlier than normal trading hours on


According to a data provided by the International Monetary Fund, central banks from emerging markets continued to increase their holdings in October. Brazil, Turkey and Kazakhstan, all increased their gold holdings with an aim to diversify their foreign kitty in the back drop of growing macroeconomic uncertainty and ultra period of ultra loose monetary policies-which threatens currencies debasement.

On the data front today, Chinese manufacturing activity expands for the first time in more than a year in November, preliminary HSBC data show, suggesting the economy may really be in recovery mode at last.

MCX December gold futures are trading up by nearly Rs 15 at Rs 31827 per 10 grams. The counter may face a resistance near Rs 31900 levels in the near term.

MCX Commodity Mentha Oil Tips

The spot prices of mentha oil in Sambhal mandi, Uttar Pradesh were quoting at Rs 1,365 per kg, up by Rs 5 per kg. Meanwhile, the spot prices were quoting steady at Rs 1,358 per kg in the Chandausi mandi. The total arrivals stood steady at 350-400 drums.

The MCX November Mentha Oil contract moved in the range of Rs 1,192-1,214.20 and is currently trading at Rs 1,211.90 per kg, up by 1.08% over the last close.

MCX Commodity News

The Indian rupee continued to remain under pressure on Wednesday, October 31, 2012 with disappointment over the Reserve Bank of India decision to keep the repo rate on hold at 8 percent and compounded after the central bank signalled no further policy easing would take place until the January-March quarter of next year. Rupee recovered slightly from a five-week low hit yesterday to end the session with mild gains on the back of a falling dollar but extended its losses today. The domestic currency opened at Rs 53.96 to a dollar and fell to a low of 54.30 so far during the day as local equities remained close to the red line. In the spot currency market, the Indian unit was last seen trading at 54.17, lower by around 20 paise or 0.36% as compared to previous close at 53.98.

Domestic shares witnessed a bout of volatility since early hours today with the 50-unit S&P CNX Nifty having hit its lowest level in more than 3-1/2 weeks. Most Asian stocks were in red on Wednesday. Provisional data showed that foreign institutional investors (FIIs) were net sellers of Indian stocks on Tuesday, 30 October 2012. FIIs sold shares worth a net Rs 191.53 crore on Tuesday, 30 October 2012, as per provisional data from the stock exchanges. At the time of writing, the BSE Sensex was up 40.67 points or 0.22% to 18,471.52 while the S&P CNX Nifty was up 6.85 points or 0.12% to 5604.75.

The Reserve Bank of India on Tuesday, 30 October 2012, said it has decided to reduce the cash reserve ratio (CRR) of scheduled banks by 25 basis points from 4.5% to 4.25% of their net demand and time liabilities (NDTL) effective the fortnight beginning November 3, 2012. As a result of this reduction in the CRR, around Rs 17500 crore of primary liquidity will be injected into the banking system. The central bank kept its key policy rate viz. the repo rate unchanged at 8% citing high inflation. The central bank also cut its baseline economic growth forecast for the fiscal year to 5.8 percent from 6.5 percent, while raising its estimate for wholesale price inflation to 7.5 percent from 7 percent. The RBI's decision comes despite increased political pressure from the government, which last month unveiled a slew of fiscal and economic reforms.

Meanwhile, the euro also hovered above last week's lows after a solid Italian debt auction and data showing Spanish economy contracted slightly less than expected in the third quarter. Against the dollar, the single currency was at $1.2959, having again found good support just below $1.2900. That helped keep the single currency well within its $1.2800/$1.3200 range seen since mid-September.

In the domestic currency futures market on the NSE, the forward month November contract, opened at 54.34 on Wednesday, October 31, 2012, higher than the spot market rupee. The contract hit an intraday high at 54.47 and registered a low at around 54.24 so far during the day. At the time of writing, the NSE November 2012 USD/INR was trading at around 54.37, up almost 8 paise or 0.15% as compared to previous close at 54.29.

MCX Commodity Updates

MCX Commodity Updates :-

Copper remained a sole performer in the metals pack with dull to positive trading while other metals slipped in red after European markets open. The Euro moved higher versus the Dollar after reports of slowdown in Consumer Price Inflation (CPI) data in Eurozone and improvement in Germany economic sentiment. ZEW Centre for Economic Research said that its index of German economic sentiment improved by 6.7 points to minus 11.5 in October from September's reading of minus 18.2.

Eurozone CPI slowed to 2.6% in the month of September as per Eurostat report. Analysts had expected CPI to hold steady at 2.7%. The news of surprise marginal fall in CPI has brought buying in Euro. The greenback is trading down by 0.5% at 1.301 against the Euro on Tuesday. Hopes that Spain will ask for bailout also drove the markets.

Copper has been a silent performer in the day so far. The LME three month forwards are up by $ 35 per tonne to trade at $ 8155 per tonne. MCX Copper remained on a sluggish mood today, trading at Rs 435 per kg, unchanged from last night. Participants mostly remained hesitant in taking positions even after weak Dollar on account of pressure relating to economic crisis.

This year China consumption is expected to grow by 3 to 4% range as per market sources. The total consumption in China is likely to stay at 7.7 million tonnes in 2012, according to Chinese media. The likelihood of Copper to gain in the future would depend upon the real consumption and inventories picture.

The inventories of copper maintained by Shanghai futures exchange is at 181514 tonnes. But the non reported inventories figure can be much higher than the current that has impacted the growth of the metal. China will also not want the prices to move sharply higher in near term as that will affect the consumption cost of the country. China consumes more than 40% of the total World Copper.

Rio Tinto third quarter results released today showed that the total mined copper production was 21 per cent higher, compared to corresponding period previous year. The company said that the refined copper production of Kennecott Utah Copper mine recovered to 45300 tonnes, up 169% from second quarter

The company has achieved a record quarterly Pilbara iron ore production of 63 million tonnes in which Rio Tinto share was 50 million tonnes, five per cent higher than the third quarter of 2011. Global iron ore production for the quarter totalled 67 million tonnes in which Rio Tinto share was 53 million tonnes.

In other metals, Zinc forwards were at five week lows on LME. The metal was trading at $ 1920 per tonne, down $ 6 per tonne from Monday. The fall is the result of sharp jump in Zinc inventories. Total Zinc inventories were up by a whopping 24550 tonnes to 1061175 tonnes. Zinc inventories have increased by 29% this year. Most of the rise has been due to the metal used in financing deals with delivery at a later date.