Gold Futures Slumped in the Domestic Market

Gold futures slumped in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal tracking a weak trend in the overseas market after Swiss voters rejected a plan for the country’s central bank to boost bullion reserves. 77 per cent of Swiss voters said no to a plan for the Swiss National Bank to hold a fixed proportion of its assets in bullion. A plunge in oil prices to a five-year low signaled weaker global inflation, dimming the appeal of gold as a hedge against the inflationary risk of monetary stimulus. Gold futures for December 2014 contract, at MCX, is trading at Rs. 25,348 per 10 grams, down by 1.73 per cent, after opening at Rs. 25,401, against the previous closing price of Rs 25,794. It touched an intra-day low of Rs 25,224. (At 11:24 AM).

Copper prices fell by 1.18 per cent on Monday at the domestic markets after research group Markit said the euro zone’s manufacturing PMI fell to 50.1, from 50.4 in the preceding month signaling weak manufacturing activity in the region which reduced the demand outlook for the metal. At the MCX, copper futures for February 2015 contract were trading at Rs.393.70 per 1 kg, down by 1.18 per cent, after opening at Rs. 396.10 against the previous closing price of Rs. 398.40. It touched the intra-day low of Rs. 390.40 till the trading. (At 3.20 PM today).

Sentiment weakened further due to the surge in the copper stockpiles at the London Metal Exchange (LME) on account of the weak demand for the commodity. LME copper stocks rose by 500 metric tonnes to 164800 metric tonnes as on December 1, 2014.

Zinc prices fell by 0.94 per cent on Monday at the domestic markets after China’s manufacturing slowed sharply last month, signaling a worsening economic slowdown in the world’s biggest metals consumer, dimming the demand outlook for the base metal. China’s manufacturing gauge fell to an eight-month low of 50.3 in November from 50.8 in October. Zinc futures for December 2014 contract, at MCX, were trading at Rs 136.55 per kg, down by 0.94 per cent after opening at Rs. 137.30 against the previous closing price of Rs. 137.85. It touched the intra-day low of Rs. 136.10 till the trading. (At 3.23 PM today).London Metal Exchange (LME) zinc stocks remained unchanged at 673000 metric tonnes as on December 1, 2014.

Cardamom prices rose by 0.13 per cent on Monday at the Multi Commodity Exchange (MCX) on account of good buying support from both exporters and upcountry buyers and also on hopes of improved export demand. At MCX, Cardamom futures for December 2014 contract were trading at Rs 776 per kg, up by 0.91 per cent, after opening at Rs. 778 against the previous closing price of Rs. 775. It touched the intra-day high of Rs. 785 till the trading. (At 10.44 AM today).

Coriander prices rose by 1.11 per cent on Monday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a result of the limited stocks on account of restricted arrivals from the major growing belts.

At the NCDEX, coriander futures for December 2014 contract was trading at Rs. 12,999 per quintal, up by 1.11 per cent after opening at Rs. 12,924 against the previous closing price of Rs. 12,856. It touched the intra-day high of Rs. 13,185 till the trading. (At 11.30 AM today).