Gold futures trade up on US-China trade escalations

Gold futures traded higher on Monday, after new tariffs were imposed by the United States and China came into force, raising concerns about recession and global economic growth slow down, buoyed the safe heaven bullion investments.

 

Meanwhile, softer dollar made the yellow metal cheaper for other currency holders adding the upside.

Gold futures for December were up 0.5% at $1,537.70 an ounce on the Comex division of the New York Mercantile. While, spot gold was 0.6% higher at $1,528.31 per ounce.

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Strong demand lifts Indian rice rates, Thai prices buoyant

Prices of Indian export rice rose this week on good export demand and concerns over production of the summer-sown crop because of erratic rainfall, while fluctuations in Thailand's currency supported Thai export rates.

Top exporter India's 5% broken parboiled variety was quoted at $374-$378 a tonne this week, up slightly from $372-$375 a week ago.

"Rice production could fall in key states like West Bengal and Andhra Pradesh due to lower rainfall," said an exporter based at Kakinada in the southern state of Andhra Pradesh.

India received 14% less rainfall than the 50-year average in the week to Aug. 28, data from the India Meteorological Department (IMD) showed.

In neighbouring Bangladesh, Agriculture Minister Abdur Razzaque said the government is considering providing cash incentives to encourage rice exports.

Dhaka has been unable to clinch overseas deals since a long-standing export ban was lifted in May, with its rice more expensive than supplies from India or Thailand despite a recent fall in local prices.

Thailand's benchmark 5% broken rice prices were quoted at $410-$430 a tonne, a slightly narrower range from last week's $415-$430, traders said.

A firmer baht, Asia's best-performing currency this year, has kept prices high while supply shortages because of a continuing drought - the worst in a decade - has also played a major role in supporting prices.

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Oil gains, led by US crude, as recession worries ease

Oil prices rose on Wednesday, with the US crude gaining 1% after an industry report showed stockpiles in the United States, the world's biggest oil user, fell more than expected, easing worries about economic growth due to the China-US trade war.

Brent crude futures climbed 42 cents, or 0.7%, to 59.93 a barrel by 0220 GMT. West Texas Intermediate (WTI) crude futures gained 56 cents, or 1%, to $55.49 a barrel.

The US crude stockpiles fell sharply last week as imports dropped, plummeting by 11.1 million barrels, compared with expectations for a 2 million barrel draw, data from industry group the American Petroleum Institute (API), showed.

The US government's weekly report is due to be released on Wednesday morning and if official numbers confirm the API data then it will be the biggest weekly decline in nine weeks.

"The mammoth crude inventory draw has, at least for the time being, put to rest those US recessionary doom and gloom fears that have been hanging over oil markets like a dark cloud," said Stephen Innes, managing partner at Valour Markets.

Still, concerns about global growth amid the raging trade war between the United States and China, which are the two biggest crude oil consumers, are likely to cap gains.

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Nickel futures rise 0.47% on spot market

Nickel futures were trading higher during noon trade in the domestic market on Monday after traders enlarged positions amid pick up in spot demand at domestic markets. Market analysts attributed the rise in nickel futures to widening of positions by participants, following rise in demand from alloy makers in physical markets.

At the MCX, nickel futures for August 2019 contract is trading at Rs 1121.30 per kg, up by 0.47 per cent, after opening at Rs 1116.00, against a previous close of Rs 1116.00. It touched the intra-day high of Rs 1127.80.

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Jeera trading range for the day is 16625-17105

Jeera trading range for the day is 16625-17105.

Jeera gained on short covering after prices dropped due to sufficient availability and prospects of good crop next season.

However upside seen limited because of high moisture content in the spice, due to rainfall in the key producing areas of Gujarat.

Parched land of Gujarat got good rains recently and soil moisture along with higher prices will motivate farmers to grow jeera on higher area.

In Unjha, a key spot market in Gujarat, jeera edged down by -24.1 Rupees to end at 17316.65 Rupees per 100 kg.

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Brent oil rises above $60, buoyed by U.S. inventory drawdown

Prices for Brent oil rose above $60 a barrel for the first time in over a week on Wednesday amid data that showed a larger-than-expected drawdown in U.S. crude inventories, but ongoing worries about a global economic recession capped gains.

Brent crude had risen 13 cents, or 0.2%, to $60.16 a barrel by 0136 GMT, after settling 0.5% higher on Tuesday.

U.S. crude was up 12 cents, or 0.2%, at $56.25 a barrel.

U.S. crude oil stocks fell by 3.5 million barrels to 439.8 million in the week to Aug. 16, data from industry group the American Petroleum Institute (API) showed on Tuesday. Analysts polled by Reuters had expected a decrease of 1.9 million barrels.

Inventory numbers from the government's Energy Information Administration (EIA) are due at 10:30 a.m. EDT (1430 GMT) on Wednesday.

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Gold prices dip on firmer dollar

Gold prices dipped on Monday due to a stronger U.S. dollar and a recovery in equities, as major central banks around the world hinted at more stimulus, easing fears about a sharp economic downturn.

Spot gold was down 0.3% at $1,509.13 per ounce at 0354 GMT.

U.S. gold futures also fell 0.3% to $1,518.70 an ounce.

"The dollar is getting stronger, and given that gold had a very good rally over the last few weeks, we are just seeing some profit-taking coming in," said OANDA analyst Jeffrey Halley, adding that the recovery in equities is somewhat fragile and gold looks constructive.

The dollar index, against a basket of six major currencies, hovered near a two-week high reached on Friday, making greenback-denominated gold costlier for investors holding other currencies.

The 10-year U.S. Treasury yield pulled away from a three-year trough hit last week.

Asian stocks also rose on Monday as hopes of more stimulus from central banks around the world and steps being taken by major economies such as Germany and China soothed investors' fears of global economic slump.

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Gold falls more than 1% as U.S.-China trade truce dents safe-haven demand

Gold fell more than 1% on Monday to its lowest in more than a week as the dollar strengthened and investors opted for riskier assets after the United States and China agreed to restart trade talks.

Spot gold was down 1.3% at $1,391.29 per ounce as of 0411 GMT, after falling to as low as $1,389.65, its lowest since June 21.

U.S. gold futures dipped 1.3% to $1,394.90 an ounce.

"Reopening of trade talks between U.S.-China has made investors look back at growth, we are seeing good support for the share markets across the region and safe-havens are in less demand," said Michael McCarthy, chief market strategist, CMC Markets.

"We are likely to see increased volatility. Gold prices have pulled back from an important technical level of around $1,430, that could mean that we will see a test at support around the $1,380 mark."

Gold rose to $1,438.63 an ounce on June 25, its highest since May 14, 2013, as the U.S. dollar weakened and as investors sought safe-haven assets on concerns about the escalation of the nuclear dispute between the United States and Iran.

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