E

BULLION METALS OUTLOOK -

GOLD - Gold prices inching upside in recent days over 4% from its all time low of $1122.5 in Comex.

We can expect the short term rally to continue till its psychological resistance at $ 1200. The medium

term trend remains bearish and we can expect fresh selling could come around $ 1200 for a near target

till $ 1150 to $ 1130 levels; even we are expecting prices to target $ 1100 to $ 1080 in coming days.

Gold prices in MCX with its short term positive trend from Rs.27000 could head towards Rs.28200 to

Rs.28400. The medium term trend could remain bearish for a target up to Rs.27500 to Rs.27000 levels

in coming days. The Significance levels for Next week is 27977-28175 is Up side and 27779-27581 is

Down Side.

GOLD CHART -

Chart Detail -

The statistical and technical indicators suggest that gold was going ahead and that it was due for a

correction. one key indicator is the moving average of convergence/divergence, which is also known

as MACD, and on a weekly basis the MACD and Parabolic SAR are indicating that the next move for

gold will be up. MCX gold is getting support at 27813 and below same could see a test of 27740 level,

And resistance is now likely to be seen at 27971, a move above could see prices testing 28056.

.

Monday, 09 January 2017

SILVER -

Silver prices in COMEX look bearish and next sort of selling could come shortly, prices rebounded

from $ 15.7 and made a high of $ 16.72 on Thursday. The trend remains bearish till $ 16 to $ 15.5

shortly. MCX Silver holding steady for short term, but the trend could remain bearish. We can expect

fresh selling could come around Rs.40600 to Rs.41000 till Rs.39000 to Rs.38000 levels. The Crucial

levels of Silver for Next week is 40451-40767 is up side and 40135-39819 is Down side.

Detail of Chart -On the Above Given Daily Chart of Silver is preserved the psychological support

39200. MCX Silver is getting support at 39850 and below same could see a test of 39359 level, And

resistance is now likely to be seen at 40685, a move above could see prices testing 41029.

MCX DAILY LEVELS ✍

DAILY EXPIRY DATE R4 R3 R2 R1 PP S1 S2 S3 S4

ALUMINIUM 30-DEC-2016 118 117 116 115 115 114 114 113 112

COPPER 28-FEB-2016 400 394 388 385 382 379 376 370 364

CRUDE OIL 19-OCT-2016 3867 3802 3737 3710 3672 3645 3607 3542 3477

GOLD 03-FEB-2016 28372 28214 28056 27972 27898 27814 27740 27582 27424

LEAD 30-DEC-2016 148 145 142 141 139 138 136 133 130

NATURAL GAS 27-DEC-2015 247 239 231 228 223 220 215 207 199

NICKEL 30-DEC-2016 728 718 708 704 698 694 688 678 668

SILVER 03-MARCH-2016 42699 41864 41029 40686 40194 39851 39359 38524 37689

ZINC 30-DEC-2016 189 185 181 179 177 175 173 169 165

MCX WEEKLY LEVELS ✍

WEEKLY EXPIRY R4 R3 R2 R1 PP S1 S2 S3 S4

ALUMINIUM 30-DEC-2016 121 117 117 117 115 115 113 111 109

COPPER 28-FEB-2016 419 407 395 391 383 379 371 359 347

CRUDE OIL 19-OCT-2016 4355 4127 3899 3791 3671 3563 3443 3215 2987

GOLD 03-FEB-2016 29503 28921 28339 28113 27757 27531 27175 26593 26011

LEAD 30-DEC-2016 157 151 145 142 139 136 133 127 121

NATURAL GAS 27-DEC-2015 348 309 270 247 231 208 192 153 114

NICKEL 30-DEC-2016 767 743 719 709 695 685 671 647 623

SILVER 03-MARCH-2016 45022 43351 41680 41011 40009 39340 38338 36667 34996

ZINC 30-DEC-2016 197 190 183 180 176 173 169 162 155

FOREX DAILY LEVELS ✍

DAILY EXPIRY R4 R3 R2 R1 PP S1 S2 S3 S4

USDINR 26-OCT2016 68.62 68.52 68.40 68.38 68.21 68.12 68.02 67.93 67.87

EURINR 26-OCT2016 75.08 74.82 73.88 71.52 71.28 70.82 69.25 68.18 67.20

GBPINR 26-OCT2016 88.04 86.40 84.16 82.25 80.18 79.02 77.03 75.98 73.16

JPYINR 26-OCT2016 61.56 60.58 58.34 57.12 56.89 56.25 55.95 55.58 55..25

FOREX WEEKLY LEVELS✍

DAILY EXPIRY R4 R3 R2 R1 PP S1 S2 S3 S4

USDINR 26-OCT2016 68.80 68.73 68.65 68.56 68.47 68.42 68.28 68.12 67.90

EURINR 26-OCT2016 79.78 75.10 73.54 71.70 69.82 68.05 67.12 66.80 64.48

GBPINR 26-OCT2016 95.35 91.58 88.44 85.80 82.18 81.60 79.25 77.36 75.05

JPYINR 26-OCT2016 68.58 65.52 63.32 60.18 59.85 57.38 55.80 53.50 51.38

NCDEX DAILY LEVELS✍

DAILY EXPIRY

DATE

R4 R3 R2 R1 PP S1 S2 S3 S4

SYOREFIDR 20-JAN-2016 738 732 728 724 720 716 712 708 704

SYBEANIDR 20-JAN-2016 3108 3086 3078 3056 3048 3038 3025 3009 2989

RMSEED 20-JAN-2016 4608 4536 4503 4468 4395 4365 4307 4286 4265

JEERAUNJHA 20-JAN-2016 18803 18638 18282 18085 17985 17758 17625 17428 17168

GUARSEED10 20-JAN-2016 3466 3380 3304 3286 3206 3164 3116 3084 3025

TMC 20-APR-2016 7083 7003 6952 6906 6847 6799 6756 6688 6625

NCDEX WEEKLY LEVELS✍

WEEKLY EXPIRY

DATE

R4 R3 R2 R1 PP S1 S2 S3 S4

SYOREFIDR 20-JAN-2016 768 748 735 728 719 712 703 695 682

SYBEANIDR 20-JAN-2016 3156 3122 3108 3098 3085 3035 2986 2978 2909

RMSEED 20-JAN-2016 4860 4681 4502 4425 4323 4246 4144 3965 3786

JEERAUNJHA 20-JAN-2016 21252 20218 19845 19025 18756 17931 16547 16002 15985

GUARSEED10 20-JAN-2016 3678 3585 3489 3458 3372 3348 3284 3194 3085

TMC 20-APR-2016 7258 7186 7005 6985 6815 6794 6704 6641 6524

MCX - WEEKLY NEWS LETTERS

✍ INTERNATIONAL UPDATES ( BULLION & ENERGY )

Gold prices were little changed early on Monday, after dipping from a one-month high last week on

expectations of further interest rate hikes, with investor attention on more views from the U.S. Federal

Reserve.

FUNDAMENTALS

➢ Spot gold XAU= was steady at $1,173.06 an ounce by 0047 GMT. The metal rose nearly two percent

last week, its biggest weekly percentage rise since early November.

➢ U.S. gold futures GCcv1 were unchanged at $1,173.80 per ounce.

➢ The dollar index .DXY , which measures the greenback against a basket of currencies, edged 0.1

percent higher at 102.27.

➢ U.S. employment increased less than expected in December but a rebound in wages pointed to

sustained labor market momentum that sets up the economy for stronger growth and further interest rate

increases this year. Chicago Federal Reserve President Charles Evans said on Friday the central bank

could raise interest rates three times this year, faster than he had expected just a few months ago and in

line with the majority of his colleagues. The outlook for U.S. rates may become a little clearer when

Federal Reserve Chair Janet Yellen appears at a webcast town hall meeting with educators on Thursday.

➢ Two regional Fed presidents will speak later Monday, and there are no less than five speeches lined up

for Thursday. The main economic release of the week is not until Friday, when retail sales figures for

December are out.

Hedge funds and money managers cut their bullish position in COMEX gold contracts for the eighth

straight week in the week to Jan. 3, taking it to the smallest in 11 months, U.S. Commodity Futures

Trading Commission data showed on Friday. Gold demand in Asia gathered some steam last week on

wedding season purchases in India, with prices swinging to a premium there for the first time in over a

month, and traders expecting demand to strengthen due to the upcoming Chinese New Year.

Gold prices fell on Friday, retreating from the previous sessions one-month highs as the dollar

strengthened against a currency basket after U.S. jobs data showed a slowdown in hiring in December but

a pickup in wage growth. Gold for February delivery settled down 0.73% at $ 1,172.65 on the Comex

division of the New York Mercantile Exchange. The metal was still 1.97% higher for the week, its best

weekly performance in two months, helped by a broad weakening of the dollar earlier in the week. The

Labor Department said Friday the U.S. economy added 156,000 jobs in December, falling short of

economists forecast for jobs growth of 178,000. The report also showed that the annual rate of wage

growth rose to 2.9% in December from a year earlier, the strongest since 2009. The employment data

indicated that the economy is improving enough for the Federal Reserve to keep pushing up interest rates.

The Fed has indicated that three quarter-percentage-point interest rate increases are on the cards for 2017.

Higher rates boost the dollar by making the currency more attractive to yield-seeking investors. The U.S.

dollar index, which measures the greenback’s strength against a trade-weighted basket of six major

currencies, jumped 0.77% to 102.17 late Friday. The index had fallen in the previous two sessions after

touching a 14-year high of 103.82 on Tuesday. Both a strong dollar and higher interest rates are typically

bearish for gold, which is denominated in dollars and struggles to compete with yield-bearing assets when

borrowing costs rise. Elsewhere in precious metals trading, palladium ended at a five-week high of $

758.35 late Friday. The metal, which is used in vehicle catalysts to clean exhaust emissions ended the

week with gains of around 11% after data showing U.S. sales of new cars and trucks hit a record high in

2016. Silver was down 0.73% at $ 16.52 a troy ounce late Friday, after touching highs of $ 16.76 in the

previous session, its highest since December 15. Copper was up 0.18% at $2.54 a pound and ended the

week up 1.6%.

Platinum was down 0.32% on the day at $972.85 an ounce but was up almost 7.5% for the week. The

metal touched its highest since November 11 at $979.75 on Thursday. In the week ahead, investors will be

looking ahead to U.S. economic reports, particularly Friday’s retail sales figures for December.

Investors will also be watching an appearance by Fed Chair Janet Yellen on Thursday and speeches by a

handful of other Fed officials during the week.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely

to affect the markets.

Monday, January 9

Financial markets in Japan will be closed for a holiday.

Australia is to release data on building approvals.

The U.K. is to release industry data on house price inflation.

Boston Fed President Eric Rosengren and Atlanta Fed President Dennis Lockhart are to speak.

Tuesday, January 10

Australia is to report on retail sales.

China is to release data on consumer and producer prices.

Canada is to publish figures on building permits.

Also Wednesday, U.S. President-elect Donald Trump is scheduled to hold his first post-election news

conference, which investors will be watching for any hints about the possible direction of economic

policy.

Wednesday, January 11

The U.K. is to release a report on manufacturing and industrial production as well as trade data.

Thursday, January 12

The European Central Bank is to publish the minutes of its last monetary policy meeting.

Canada is to report on new house price inflation.

The U.S. is to release the weekly jobless claims report along with data on import prices.

Fed Chair Janet Yellen is to speak at an event in Washington.

Also Thursday, Philadelphia Fed President Patrick Harker, Chicago Fed President Charles Evans, Atlanta

Fed's Dennis Lockhart, St. Louis Fed President James Bullard and Dallas Fed President Rob Kaplan are

due to speak.

Friday, January 13

China is to report on the trade balance.

The U.S. is to round up the week with reports on retail sales, producer prices and a preliminary look at

consumer sentiment.

Philadelphia Fed President Patrick Harker is also to speak.Gold slipped on Friday from the previous day's

one-month high as the dollar strengthened against a basket of currencies, lifted by U.S. non-farm payrolls

data that showed a slowing in hiring last month but an increase in wages. The report supported the view

that the U.S. Federal Reserve will press ahead with interest rate increases this year, analysts said. Spot

gold XAU= was down 0.4 percent at $1,175.90 an ounce by 1526 GMT. The metal was still 2.2 percent

higher this week, its biggest weekly rise in two months, helped by a broad weakening of the dollar earlier

in the week and a retreat in U.S. bond yields. But with markets uncertain ahead of Donald Trump's

inauguration on Jan. 20, investors turned cautious after gold reached its highest since Dec. 5 at $ 1,184.90

on Thursday. "Any profit that can be booked at this early stage is welcomed by most, so that's why we're

seeing a scaling back a bit," U.S. gold futures GCcv1 were down 0.4 percent at $ 1,176.30. Non-farm

payroll data showed that the United States added 156,000 jobs in December, less than expected, but a

rebound in wages pointed to sustained labour market momentum, stronger growth and further interest rate

rises from the Fed. data "doesn't change much in terms of the interest rate outlook. The Fed has indicated

that it will press ahead with further rate hikes this year after its second in a decade last month. Higher

interest rates exert downward pressure on the gold price by increasing the opportunity cost of holding

non-yielding bullion. "If we can manage to hold above $ 1,162 then the market has the potential of

moving up towards testing the really big area of resistance, which is just above $ 1,200.

Gold on Friday slipped from the one-month high touched in the previous session on a surge in dollar, with

traders waiting for U.S. jobs data later in the day for clues on the pace of possible U.S. interest rate hikes

this year. Spot gold XAU= eased 0.3 percent to $ 1,176.36 per ounce by 0543 GMT. The metal on

Thursday hit its highest since Dec. 5 at $ 1,184.90. U.S. gold futures GCcv1 were down 0.4 percent, at $

1,177 per ounce. "We can see a bit of profit-taking ahead of the nonfarm payroll data," A firm dollar will

put pressure on gold prices ahead of Donald Trump's inauguration. U.S. services sector activity held at a

one-year high in December as new orders surged, while the number of Americans filing for

unemployment benefits fell near a 43-year-low last week, suggesting the economy ended 2016 with

strong momentum. dollar index .DXY , which measures the greenback against a basket of currencies, was

up 0.2 percent at 101.680. Investors are focused on Friday's U.S. nonfarm payrolls report, with

economists expecting job gains of 178,000 in December. U.S. Fed has indicated that it would press ahead

with further interest rate hikes this year after its second rate increase in a decade last month. Positive data

usually puts pressure on gold prices, because investors raise bets on a U.S. interest rate hike that would

increase the opportunity cost of holding non-yielding bullion. Spot gold failed to break a resistance at $

1,182 per ounce and it may either hover below this level or retrace to a support at $ 1,159. Technical

charts look a bit weak on the daily side and prices might come down to the around $ 1,160. Holdings of

SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.03 percent to

813.59 tonnes on Thursday from Wednesday. They have fallen over 14 percent since the U.S. presidential

election in November. Among other precious metals, spot silver XAG= fell 0.8 percent to $ 16.42. Silver

hit a high of $ 16.71, its best since Dec. 15, in the prior session.

Gold on Friday hovered near one-month highs touched the session before, with traders waiting for U.S.

jobs data later in the day for clues on the pace of possible U.S. interest rate hikes in 2017.

FUNDAMENTALS

➢ Spot gold XAU= had eased 0.2 percent to $1,178.53 an ounce by 0056 GMT. The metal on Thursday

hit its highest since Dec. 5 at $1,184.90.

➢ U.S. gold futures GCcv1 were also down 0.2 percent, at $1,179 an ounce.

➢ Investors are focused on Friday's U.S. non-farm payrolls report, with economists expecting job gains of

178,000 in December.

➢ U.S. services sector activity held at a one-year high in December as new orders surged, while the

number of Americans filing for unemployment benefits fell near a 43-year-low last week, suggesting the

economy ended 2016 with strong momentum. A raft of data from China in coming weeks is expected to

show the world's second-largest economy carried solid momentum into 2017, thanks to heavy government

stimulus and a construction boom that breathed new life into its ailing smokestack industries. Euro zone

producer prices rose for the third consecutive month in November on a monthly basis, mostly driven by

soaring energy prices which offset subdued prices for consumer goods, estimates released on Thursday by

Eurostat showed. SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its

holdings fell 0.03 percent to 813.59 tonnes on Thursday from Wednesday.

MARKET NEWS

➢ The U.S. dollar wobbled near three-week lows and U.S. bonds were bought back on Friday as investors

wound back 'Trump trade', helping to lift the world's stocks to 1-1/2 year highs.

➢ Oil prices were little changed on Friday after gaining nearly 1 percent the day before on news that

Saudi Arabia had cut production to meet OPEC's agreement to reduce output.

Gold touched its highest in four weeks on Thursday as the dollar slipped further from a 14-year peak hit

earlier this week. Spot gold XAU= rose as much as 1.4 percent to its highest since Dec. 7 at $ 1,179.36 an

ounce and was up 0.7 percent at $ 1,171.46 by 1128 GMT. U.S. gold futures GCcv1 climbed $ 6.90 to $

1,172 an ounce. Spot prices are heading for a near two percent gain for the week so far, having benefited

from a halt in the dollar's rise. "Although the wider picture hasn't changed and U.S. growth is improving,

there shouldn't be any further significant appreciation in the dollar after the strong run of the past few

months and given uncertainty about economic policy changes going forward. This should be supportive

for dollar-denominated gold. The metal, mostly used to clean exhaust emissions from gasoline-powered

catalysts, has been bought in anticipation of record-high vehicle sales in the United States and was also

boosted by a lower dollar. U.S. car sales December data on Wednesday showed sales of new cars and

trucks rose to a record in 2016. dollar . DXY fell 0.2 percent against a basket of six main currencies.

Minutes from the Federal Reserve's December meeting showed almost all policymakers thought the

economy could grow more quickly due to fiscal stimulus under the Trump administration. At the same

time, Fed policymakers "emphasized their considerable uncertainty" about future economic policy

changes. gold fell more than 8 percent in November and touched a 10-month low in December, on a

higher dollar and U.S. Treasury yields after Donald Trump's election win and as the Fed raised interest

rates for the first time in a year. It has now increased around 5 percent from its lows.

Buying from China, the biggest consumer of the yellow metal, is also supporting the recent rally. "The

Chinese New Year is around the corner. Gold kilobar demand is picking up right now with strong

premiums in the mainland. Holdings of the SPDR Gold Trust GLD , the world's largest gold-backed

exchange-traded fund, were unchanged on Wednesday at 813.87 tonnes. They have dropped about 14

percent since the U.S. presidential election in November. Spot silver XAG= was up 0.7 percent at $ 16.54,

after hitting a 3-week high of $ 16.70.

Gold prices eased on Wednesday after hitting a three-week high in the previous session, with the U.S.

dollar hovering near 14-year peaks against a basket of major currencies.

FUNDAMENTALS

➢ Spot gold XAU= was down 0.2 percent at $1,156.96 an ounce by 0051 GMT. It marked its highest

since Dec. 14 on Tuesday at $1,163.52.

➢ U.S. gold futures GCcv1 fell 0.4 percent to $1,157.70 per ounce.

➢ The dollar index .DXY , which measures the greenback against a basket of currencies, was at 103.34

after climbing to 103.82 the previous day, its strongest since December 2002.

➢ Holdings of the SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund,

dropped 1.01 percent to 813.87 tonnes on Tuesday.

➢ U.S. factory activity accelerated to a two-year high in December amid a surge in new orders and

rapidly rising raw material prices, indicating that some of the drag on manufacturing from prolonged

dollar strength and a slump in oil prices was fading. Other data on Tuesday showed U.S. construction

spending hit a 10-1/2-year high in Nvember, providing a boost to a fourth-quarter economic growth

estimate. The reports suggested President-elect Donald Trump would inherit a strong economy, with a

labour market that is near full employment, from the Obama administration.

➢ China's factory activity picked up more than expected in December as demand accelerated, with output

reaching a near six-year high, a private business survey showed on Tuesday, giving the manufacturing

sector a solid boost heading into 2017.

Gold prices rose 1 percent to a near 3-week high on Tuesday as early gains in stocks and other assets

perceived as risky gave up gains and investors fled to save-haven bullion. Platinum and palladium both

jumped by more than 4 percent as investors scrambled for position as the new year got under way. The

themes of late 2016 appeared to be persisting in the wider markets, with equities rising while the dollar

index touched a 14-year high boosted by strong economic data. As the session progressed, the dollar and

equities pared gains, supporting gold prices. Spot gold XAU= was up 0.6 percent at $ 1,159.06 an ounce

by 2:17 p.m. EST , while U.S. gold futures GCv1 for February delivery ended the session up 0.9 percent

at $ 1,162. The metal fell sharply in the wake of Donald Trump's victory in November's U.S. presidential

election, sliding by more than 12 percent in the fourth quarter. Trump's victory boosted the dollar and

sparked a sharp rally in bond yields, lifting the opportunity cost of holding non-yielding gold and blunting

investors' appetite for the metal. However, Trump could also boost investor interest in the precious metal,

some market participants said. "We are not going to dismiss the precious metal completely considering

we still have the Trump card in the pack," "At a time when even his tweets are destabilising stocks, any

erratic policy proposals, let alone mismanaged implementation, can potentially trigger market uncertainty

and increase the investors' interest in gold." Indications from the U.S. Federal Reserve that it would press

ahead with further interest rate rises this year are also buoying the dollar and pressuring gold. A strong

start to 2016 meant that gold still managed to end last year with its first annual gain since 2012, rising by

8.5 percent. Spot platinum XPT= was up 4 percent at $935.24` per ounce after rising by more than 5

percent. Meanwhile, sister metal palladium XPD= was up 4.5 percent to $ 709 after rising by about 5

percent. "The repositioning in the futures market in the dying weeks of last year saw in platinum a

rebuilding in the gross short position, and at the same time long positioning remaining fairly steady.

"Right now I think this is some short-covering driving prices higher. "It's the start of the year, and there

are some funds rebalancing their portfolios. There might be some niche funds that are interested in these

metals, so that is part of the mix as well." Palladium was the best-performing precious metal last year,

with the price rising 20 percent for its biggest annual gain in six years. Platinum lagged gains in the wider

complex, however, ending 2016 only 1 percent higher. Both metals are widely used in auto catalyst

manufacturing, and are more exposed than gold to the economic cycle. Spot silver was up 2.23 percent at

$16.29 per ounce.

Gold prices ticked higher in the first trading session of 2017 on Tuesday, but gains were limited as the

prospect of rising U.S. interest rates this year kept sentiment bearish. Gold for February delivery on the

Comex division of the New York Mercantile Exchange tacked on $ 2.00, or around 0.2%, to $1,153.75 a

troy ounce by 3:50AM ET. The U.S. dollar rose on Tuesday, crawling back toward its 14-year-high

against a basket of currencies with markets focused on the possibility of further U.S. interest rate hikes in

2017. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of

six major currencies, was up 0.55% at 102.93 in early trade, not far from last week's 14-year peak of

103.62. Market analysts warned that the outlook for gold remains cloudy in the near-term amid

expectations of U.S. interest rates rising more rapidly during the incoming Trump Administration. The

Federal Reserve hiked interest rates for the first time in a year last month and projected three more

increases in 2017. Prices of the yellow metal have fallen sharply since Donald Trump was elected

president as a soaring U.S. dollar, rising Treasury yields and a record-breaking rally on Wall Street have

dampened its appeal. The precious metal is sensitive to moves in U.S. rates, which lift the opportunity

cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced. Both a

strong dollar and higher interest rates are typically bearish for gold, which is denominated in dollars and

struggles to compete with yield-bearing assets when borrowing costs rise. Also on the Comex, silver

futures for March delivery added 7.3 cents, or 0.45%, to $16.02 a troy ounce during morning hours in

New York. Meanwhile, platinum tacked on 0.4% to $ 909.50 and palladium inched up 0.1% to $ 683.73

an ounce. Elsewhere in metals trading, copper futures rose 1.9 cents, or 0.8%, to $ 2.525 a pound

following a survey showing a pickup in China's factory activities for December. The China Caixin

manufacturing purchasing managers' index, a private gauge of nationwide factory activity, rose to 51.9 in

December from 50.9 in November. The figure marked the strongest upturn in Chinese manufacturing

conditions since January 2013. The Asian nation is the world’s largest copper consumer, accounting for

almost 45% of world consumption last year.

Gold began the new year quietly, edging up slightly on Tuesday, despite pressure from a strong dollar.

FUNDAMENTAL

Spot gold XAU= rose 0.2 percent to $ 1,154.26 per ounce at 0109 GMT.

➢ Bullion gained more than 8 percent in 2016, snapping three years of declines.

➢ U.S. gold futures rose 0.3 percent at $1,155.4

➢ The most active COMEX gold futures contract finished 2016 up 7.1 percent as compared to the end of

2015 after strong gains on economic uncertainty earlier in the year were pared by heavy selling as the

U.S. dollar rallied following the U.S. presidential election. The dollar index - which measures the

greenback against six major rivals - climbed over half a percent.

➢ The U.S. dollar held on to broad gains on Tuesday, resuming its ascent after last week's brief wobble as

the prospect of rising U.S. interest rates this year kept sentiment bullish on the long-run.

➢ Asian stocks began 2017 on a flat note on Tuesday, uninspired by a surge in European markets to their

highest in more than a year, while the dollar resumed its climb after last week's stumble.

➢ Starting in July 2017, banks and other financial institutions in China will have to report all domestic

and overseas cash transactions of more than 50,000 yuan ( or $7,201), compared with 200,000 yuan

previously, the central bank said on Friday. China's new rules on overseas currency transfers are not

capital controls, the official Xinhua news agency reported, even as some banks told customers that

purchases of foreign currency for property, securities and life insurance were not allowed. After a late-

year rally fuelled by the U.S. election pushed stocks to surprising new peaks, investors are wary that the

market could be primed for a spill to start 2017. Hedge funds and money managers slashed their net long

positions in COMEX gold to a near 11-month low and trimmed bullish bets in Silver contracts in the

week to Dec. 27, U.S. Commodity Futures Trading Commission data showed on Friday. SPDR Gold

Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.14 percent to

822.17 tonnes on Friday from 823.36 tonnes on Thursday.

ENERGY

Oil prices fell early on Monday as Iran increased exports undermining efforts by other oil producers to

curb a global fuel supply overhang and as U.S. drillers increased activity for a 10th week. Brent crude

futures LCOc1 , the international benchmark for oil prices, were trading at $ 56.97 per barrel at 0019

GMT, down 13 cents from their last close.

U.S. West Texas Intermediate crude oil futures CLc1 were trading at $ 53.79 per barrel, down 20 cents.

The lower prices were a result of rising exports from Iran that come just as other members of the

Organization of the Petroleum Exporting Countries cut supplies in an effort to end a global glut. Iran has

sold more than 13 million barrels of oil held on tankers at sea, capitalising on an OPEC output cut deal

from which it is exempted to regain market share and court new buyers, according to industry sources and

data.

The amount of Iranian oil held at sea has dropped to 16.4 million barrels, from 29.6 million barrels at the

beginning of October, Before that sharp drop, the level had barely changed in 2016; it was 29.7 million

barrels at the start of last year, the data showed. surging tanker exports weren't the only indicator of

plentiful supplies. In the United States, U.S. energy companies last week added oil rigs for a tenth week in

a row, extending the drilling recovery into an eighth month as crude prices remained at levels at which

many U.S. drillers can operate profitably. "The next leg up in prices probably won't occur until the traders

see evidence that production levels are falling. In the meantime, rising U.S. drilling activity and output is

likely to keep prices in check,"

Drillers added four oil rigs in the week to Jan. 6, bringing the total count up to 529, the most since

December 2015, energy services firm Baker Hughes Inc BHI.N said on Friday. a result of the increased

drilling for new production, U.S. oil output C-OUT-T-EIA has risen by over 4 percent since its 2016 low

to almost 8.8 million barrels per day, although production remains 8.74 percent below its 2015 peak.

Oil futures finished slightly higher on Friday, logging their fourth weekly gain in a row with traders

encouraged by signs that major crude producers will adhere to the pledge to curb output. On the New

York Mercantile Exchange, crude oil for delivery in February inched up 23 cents, or about 0.4%, to end at

$ 53.99 a barrel by close of trade Friday.

U.S. crude prices touched an 18-month high of $ 55.24 on Tuesday.

For the week, New York-traded oil futures added 97 cents, or about 1.8%, after posting gains in each of

the previous three weeks. Elsewhere, on the ICE Futures Exchange in London, Brent oil for March

delivery tacked on 21 cents, or nearly 0.4%, to settle at $ 56.82 a barrel by close of trade. Brent prices

rallied to $58.37 on Tuesday, a level not seen since July 2015. London-traded Brent futures logged a gain

of 28 cents, or approximately 0.5%, on the week. Prices tallied a weekly gain amid signals that major oil

producers, such as Saudi Arabia and Kuwait, are sticking to their pledge to cut back output.

January 1 marked the official start of the deal agreed by OPEC and non-OPEC member countries such as

Russia in November last year to reduce output by almost 1.8 million barrels per day. The deal, if carried

out as planned, should reduce global supply by about 2%. However, some traders remain skeptical that

the planned cuts will be as substantial as the market currently expects. There are also some worries in the

market about production increases in Libya and Nigeria, which are both allowed to ramp up production as

part of the OPEC deal. Meanwhile, indications of increased drilling activity in the U.S. remained in focus.

According to oilfield services provider Baker Hughes, the number of rigs drilling for oil in the U.S. last

week increased by 4 to 529, the tenth straight weekly rise and a level not seen in almost a year.

Some analysts have warned that the recent rally in prices could be self-defeating, as it encourages U.S.

shale producers to drill more, adding to concerns over a global supply glut. Elsewhere on Nymex,

gasoline futures for February shed 0.3 cents, or 0.2% to $1.634 a gallon. It ended down about 2.2% for the

week. February heating oil ticked up 0.9 cents, or 0.5%, to finish at $1.728 a gallon. For the week, the fuel

declined around 1.5%. Natural gas futures for February delivery settled 1.2 cents, or 0.4%, higher at

$3.285 per million British thermal units, but still lost 43.9 cents, or 11.8%, on the week, as forecasts of

mild January weather replaced predictions of severe cold. In the week ahead, market participants will eye

fresh weekly information on U.S. stockpiles of crude and refined products on Tuesday and Wednesday to

gauge the strength of demand in the world’s largest oil consumer.

Traders will also continue to pay close attention to comments from global oil producers for further

evidence that they are complying with their agreement to reduce output this year.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely

to affect the markets.

Tuesday, January 10

The American Petroleum Institute, an industry group, is to publish its weekly report on U.S. oil supplies.

Wednesday, January 11

The U.S. Energy Information Administration is to release weekly data on oil and gasoline stockpiles.

Thursday, January 12

The U.S. EIA is to produce a weekly report on natural gas supplies in storage.

Friday, January 13

Baker Hughes will release weekly data on the U.S. oil rig count.

Oil rose slightly on Friday on futures buying, ending the week higher, but gains were limited by a strong

U.S. dollar and lingering doubts about whether OPEC producers would stick to a deal to cut output.

Market players attributed choppy trading to position-squaring at the end of the week and low volumes at

the start of the year. Brent crude futures LCOc1 settled 21 cents higher at $ 57.10 per barrel, after trading

in a range of $ 56.28 to $ 57.47. The contract posted gains for the second week in a row. U.S. West Texas

Intermediate crude futures CLc1 ended the session up 23 cents at $ 53.99 a barrel, after swinging between

$ 53.32 and $ 54.32. WTI notched its third straight weekly gain. "There's a lot of volatility, or at least

changes in direction. "People think the long-term trend is up, but after a gain of a few dollars, they take

profit." The dollar .DXY gained broadly after the U.S. non-farm payrolls report showed slower hiring in

December but an increase in wages, feeding expectations of further interest rate increases from the

Federal Reserve this year. stronger greenback makes oil more expensive for holders of other currencies.

Top crude exporter Saudi Arabia and fellow Gulf members Abu Dhabi and Kuwait showed signs they

were cutting production in line with an agreement by members of the Organization of the Petroleum

Exporting Countries and other producers, yet market watchers have doubts about overall compliance.

signs that producers are reneging on their commitments could cause sentiment to sour and cause prices to

fall back sharply.

U.S. energy companies this week added oil rigs for a 10th week in a row, bringing the total count up to

529, the most since December 2015,

"Market balances are unquestionably tightening, but concerns pertaining to the pace at which the global

storage glut will be drawn down toward historically normal levels will be the focal point for the year

ahead," "While the market has centered its attention on the notional size of the announced cuts from both

OPEC and non-OPEC countries and whether or not the group will deliver on its promises, we believe that

an important factor is being overlooked ... the deal inadvertently tightens the medium and heavy balances

incrementally more than the light, sweet market."

Oil was slightly higher Friday, as hopes that a landmark agreement between major producers to cut output

continued to support prices and investors looked ahead to data on U.S. drilling activity. U.S. crude was up

35 cents, or 0.65%, at $54.11 at 06:50 ET, while Brent crude gained 39 cents, or 0.69%, to $ 57.28.

Reports out Thursday of supply cuts from Saudi Arabia and Abu Dhabi coming into effect as part of

efforts by the OPEC and other producers to curb a global supply glut gave oil prices upside. Also

supporting black gold, official EIA data out a day earlier saw crude stockpiles decline by 7.1 million

barrels, compared to expectations for a drop of 2.2 million. Still, market participants were cautious on

Friday ahead of the U.S. employment report for December. A rate rise may strengthen the U.S. dollar,

which could depress oil prices as it would make the greenback-denominated commodity more expensive

for holders of other currencies. Investors also looked ahead to the Baker Hughes U.S. rig count data for

the latest week. Last week, the oilfield services provider said that the number of rigs drilling for oil in the

U.S. increased by 2 to 525 in what was the ninth straight weekly rise and a level not seen in almost a year.

Oil prices edged up on Wednesday, recovering some losses from the previous day when the U.S.-dollar

hit a 14-year peak and weighed on crude markets. U.S. West Texas Intermediate crude oil futures CLc1

were trading at $ 52.58 per barrel at 0026 GMT, up 25 cents, or 0.5 percent, from the last settlement.

International Brent crude futures LCOc1 had yet to trade. Traders said that the increase was due to a dip

in the U.S. dollar, making dollar-traded fuel purchases for countries using other currencies at home

slightly cheaper. The move came after the dollar hit a 14-year peak on the back of strong U.S. economic

data. Wednesday's dip in the dollar, analysts expect the greenback to remain strong in the near future.

"The dollar remains supported due to the fact that the Fed has not only turned hawkish but it has already

started its policy tightening cycle, while the rest of the major central banks are pretty much dovish across

the board. moves in foreign exchange markets would likely be a strong driving factor in crude markets, as

investors weigh the prospects of money markets over commodity futures. In physical oil markets, all eyes

are on plans by major oil producers like the Organization of the Petroleum Exporting Countries to cut

crude supplies from this month in an effort to end global oversupply that has dogged markets for over two

years. Reflecting a tightening market, top oil exporter Saudi Arabia is expected to raise official selling

prices for all its crude grades to Asia in February. for physically delivered crude to customers around the

world are a key indicator in determining the prices for crude oil futures like Brent or WTI. "Crude oil has

risen... on expectations of reduced supply excess.

Oil prices climbed to 18-month highs on the first trading day of 2017 on Tuesday amid hopes that an

agreement between major producers to cut production will be effective in reducing a global supply glut

and rebalancing markets. Brent crude was trading up $ 1.33, or 2.34% at $ 58.15 a barrel at 08.10 Eastern

Time, the highest level since July 2015. Oil markets were closed on Monday after the New Year's

holiday. U.S. crude oil was $1.3, or 2.42% at $55.02, also it's highest since July 2015.

January 1 marked the official start of the deal agreed by the Organization of Petroleum Exporting

Countries and non-OPEC members in November to slash output by almost 1.8 million barrels per day.

Market analysts have said January will serve as an indicator of whether the agreement will be carried out.

Spot deals were limited in the first full trading day of 2017, while the crude oil futures contracts on which

West African oil is priced were notably volatile.

➢ Several pending tenders tied up some seller interest, with Indian firms IOC and BPCL running buying

tenders.

➢ Crude oil futures traded at 18-month highs before crashing more than $1 per barrel below the previous

close due to a resurgent U.S. dollar and questions surrounding OPEC's plans to cut production.

➢ A fire this week hit the Ivory Coast oil refinery SIR, which often processes West African crude, but the

company said that units apart from the hydrocracker where it started had not been affected. Traders expect

Saudi Arabia to raise its official selling prices to Asia, which could help West African grades compete for

buyers in the region. Spot buying demand was all but absent, with those holding Nigerian cargoes

targeting tender buyers in India.

➢ Loading delays plagued Exxon Mobil's production after workers in Nigeria staged industrial action late

last year.

➢ February loadings were impacted by the delays, and stood at 1.58 million bpd. Four planned cargoes of

Akpo condensate not included in the total.

➢ Awards for 2017 contracts were expected any day.

➢ Traders said there was a limited amount of oil left available after buying concluded quietly over the

holidays.

➢ The premium of Brent crude to Dubai crude futures fell to $1.90 per barrel, less than half the level of

the same time last year and close to the 2016 low of $ 1.79.

➢ A smaller gap makes oil priced versus Brent more attractive to the Asian buyers on which Angola

depends.

Oil prices rose on Tuesday, the first trading day of 2017, buoyed by hopes that a deal between OPEC and

non-OPEC members to cut production, which kicked in on Sunday, will drain a global supply glut.

Benchmark North Sea Brent crude LCOc1 was up 40 cents at $57.22 a barrel by 0845 GMT, not far

below the 2016 high of $ 57.89, reached on Dec. 12. U.S. light crude oil CLc1 was up 40 cents at $54.12

a barrel. Oil futures markets were closed on Monday for New Year public holidays. Jan. 1 marked the

official start of a deal agreed by the Organization of the Petroleum Exporting Countries and other

exporters such as Russia to reduce output by almost 1.8 million barrels per day. signals suggest the OPEC

and non-OPEC production cuts are raising hopes that the global oil oversupply will diminish. "Markets

will be looking for anecdotal evidence for production cuts. "The most likely scenario is OPEC and non-

OPEC member countries will be committed to the deal, especially in early stages."Libya, one of two

OPEC countries exempt from the output cuts, has increased its production to 685,000 bpd, from around

600,000 bpd in December, an official at the National Oil Corporation said on Sunday. non-OPEC Middle

Eastern oil producer Oman told customers last week that it would cut its crude oil term allocation volumes

by 5 percent in March. Russia's oil production in December remained unchanged at 11.21 million bpd,

near a 30-year high, but it was preparing to cut output by 300,000 bpd in the first half of 2017 in its

contribution to the accord.

U.S. oil prices rose in the first trading hours of 2017 on Tuesday, buoyed by a deal for OPEC and non-

OPEC production cuts which kicked off on Sunday. U.S. benchmark West Texas Intermediate CLc1

crude oil prices were up 35 cents, or 0.7 percent, at $ 54.07 at 0010 GMT, not far from last year's high of

$ 54.51 reached on Dec. 12. International Brent crude oil LCOc1 was yet to trade after closing up 68 cents

at $56.82 per barrel on Friday. Oil markets were closed on Monday after New Year's holiday. Jan. 1

marked the official start of the deal agreed by the Organization of Petroleum Exporting Countries and

non-OPEC member countries such as Russia in November last year to reduce output by almost 1.8 million

barrels per day. will serve as an indicator for whether the agreement can stick.Libya, one of two OPEC

member countries exempt from the deal, increased its production to 685,000 barrels per day as of Sunday,

up from around 600,000 a day in December, according to an official from the National Oil Corporation.

OPEC member countries, Oman notified its customers last week that it will cut its crude term allocation

volumes by 5 percent in March. member Russia's oil production in December remained unchanged at

11.21 million bpd, but it was preparing to cut output by 300,000 bpd in the first half of 2017 as part of its

efforts to join the global deal to reduce oversupply and rebalance the market.

With global oil markets closed on Monday and crude prices having pocketed gains of around 50% during

2016, traders prepared to watch developments surrounding the landmark deal reached by the Organization

of the Petroleum Exporting Countries and several non-OPEC oil producers to reduce their output this

year.

Oil futures finished with modest losses in the final trading session of 2016 on Friday, but scored the

biggest annual gain since 2009 in the wake of the agreement to tackle the global supply glut and support

crude prices.

OPEC members agreed to lower production by a combined 1.2 million barrels per day starting on Sunday,

January 1, their first such deal since 2008. The pact was followed by an agreement from 11 non-OPEC

producers, led by the largest producer outside the cartel Russia, to reduce their supplies by 558,000

barrels a day. The deal, the first of its kind in 15 years, aimed to reduce global supply by about 2%. From

more than $110 per barrel in 2014, oil prices dropped to its February bottom at a 13-year low of around

$26-per-barrel before recovering in later months as oil-producing countries made efforts to limit

production. Brent oil ended 2016 with an annual rise of 52%, while U.S. crude futures pocketed gains of

nearly 45%. Markets skeptical of output cut compliance, However, some traders remain skeptical that the

planned cuts will be as substantial as the market currently expects. Notably, Moscow promised to account

for 300,000 barrels per day of the 558,000 included in the agreement among non-OPEC producers.

However, Russia also indicated that it planned to reach a reduction of 200,000 barrels by March with the

additional 100,000 being cut by June. There are also some worries in the market about production

increases in Libya and Nigeria, which are both allowed to ramp up production as part of the OPEC deal.

Many analysts have also put into question just how much of the agreement will be carried out. Both JP

Morgan and Goldman Sachs put their forecast for compliance at 80% and 84%, respectively. “We now

harbor mounting concerns that cheating will inevitably undermine commitment to the agreement at some

point in the second semester,” JP Morgan suggested. Goldman explained their less-than-100% forecast

was “given that compliance to cuts outside of Gulf Cooperation Council producers (Saudi Arabia, Kuwait,

United Arab Emirates, Qatar, Bahrain and Oman) has historically been poor.” On the near-term horizon,

investors will likely have to wait for their possible first taste of compliance when the monitoring

committee meets in Vienna. Though OPEC secretary general Mohammed Barkindo had floated a date of

January 13, Kuwaiti oil minister Issam Al-Marzouq confirmed that the first meeting would come later.

"Preparations are under way to hold a meeting for the Kuwait-chaired special commission tasked with

monitoring adherence to crude oil cut on January 21-22 in Vienna," the minister said last Wednesday,

according to a report from the state-run Kuwait News Agency. “It should become better known in a few

weeks, around when Donald Trump takes office, just how much is being cut and how much is smoke-and-

mirrors,” Boslego Risk Services founder Robert Boslego said in an analysis.“The cuts announced are

unlikely to all start this month,” he said, also warning that Russia does not follow through, it would be

unlikely that many other Non-OPEC voluntary cuts will materialize either."You get until January 21 to

believe your hoped-for outcomes and then you converge with reality,” Clear View Energy Partners

managing director Kevin Book told CNBC, affirming that cheating on the deal was “inevitable”.

“Historically OPEC always blows past its targets," he added. U.S. shale producers likely to cap upside on

oil prices Meanwhile, indications of increased drilling activity in the U.S. remained in focus. Oilfield

services provider Baker Hughes said late Friday that the number of rigs drilling for oil in the U.S. during

the previous week increased by 2 to 525, the ninth straight weekly rise and a level not seen in almost a

year. Some analysts have warned that the recent rally in prices could be self-defeating, as it encourages

U.S. shale producers to drill more, adding to concerns over a global supply glut. “As higher prices kick in,

shale production would likely quickly ramp up, effectively capping oil prices above $ 60," analysts at

Standard & Poor’s explained. Ellen R. Wald, Ph.D., expert on the global energy industry, believes that oil

prizes will stabilize in 2017, as OPEC “is once again saying the right things and working towards

cooperation to limit production and raise prices.” “The OPEC production cuts may never be implemented

fully and likely will not last for too long, and further hurdles remain to bringing the full range of non-

OPEC producers on board, but the movement is now clearly in the direction of combined production

limits,” she explained.

BASE METAL’S OUTLOOK :

BASE METAL GUIDE -

Trading Ideas:

Nickel trading range for the day is 687.6-709.2.Nickel steadied as investors squared positions after a

strong U.S. payrolls report, even as they kept an eye on a stronger dollar.The impending moderation of

Indonesia's mineral ore export ban and consequent resumption of nickel exports will increase global

nickel supply.BMI maintained its 2017 nickel price forecast of $10 500/t on average.

ZINC

Zinc trading range for the day is 173.3-180.7.Zinc prices recovered from lows despite of stronger dollar in

the wake of strong manufacturing data from China.Miners remain cautious about the market, and the

market is expected to finish 2016 in deficit, demand expectations for 2017 are murky.China’s

infrastructure spending programs have been a major boost to zinc demand and these programs will wind

down in the second-half of the year.

COPPER

Copper trading range for the day is 376.4-387.6.Copper prices ended with gains as investors squared

positions after a strong U.S. payrolls report.The International Copper Study Group expects global copper

ore output to be 19.90 million tonnes in 2017, flat at 2016’s.Workers at Escondida, the world’s largest

open-pit copper mine, have rejected the company’s initial wage offer as collective talks begin.

BASE METAL

COPPER ✍

Copper prices rose by 0.12 per cent to Rs 380.90 per kg in futures trading on Friday as traders engaged in

enlarging their positions, tracking a firm trend at spot market on rising demand. At the Multi Commodity

Exchange, copper for delivery in February went up by 45 paise, or 0.12 per cent, to Rs 380.90 per kg in

business turnover of 961 lots. Similarly, the metal for delivery in far-month April was trading higher by

40 paise, or 0.10 per cent, to Rs 384.25 per kg in 5 lots. Analysts said widening of positions by

participants on the back of rising demand from consuming industries at domestic spot market, mainly kept

copper prices higher at futures trade.

NICKEL ✍

Falling for the second day, nickel prices shed 0.24 per cent to Rs 699.60 per kg in futures market as

participants engaged in reducing their positions amid subdued demand in the spot market. At the Multi

Commodity Exchange, nickel for delivery in February drifted lower by Rs 1.70, or 0.24 per cent to Rs

699.60 per kg in a business turnover of 3 lots. Likewise, the metal for delivery in January traded lower by

Rs 1.10, or 0.16 per cent to Rs 695 per kg in 701 lots. Analysts said, offloading of positions by traders

following easing demand from alloy-makers in the spot market, mainly kept nickel prices lower at futures

trade.

ZINC ✍

Zinc prices drifted lower by 0.37 per cent to Rs 176.35 per kg in futures trade as traders engaged in

trimming their positions, taking negative cues from spot market on fall in demand from consuming

industries. At the Multi Commodity Exchange, zinc for delivery in January declined by 65 paise, or 0.37

per cent, to Rs 176.35 per kg in a business turnover of 477 lots. Market analysts said offloading of

positions by participants owing to slackened demand from consuming industries in the spot market, kept

zinc prices down at futures trade.

COPPER ✍

Copper prices were up by 0.21 per cent to Rs 384.85 per kg in futures trade on Thursday as speculators

widened positions on the back of rising demand in the spot market amid a firm trend overseas. At the

Multi Commodity Exchange, copper for delivery in February traded higher by 80 paise, or 0.21 per cent,

to Rs 384.85 per kg, in a business turnover of 1,183 lots. Similarly, the metal for delivery in far-month

April edged up by 60 paise, or 0.15 per cent, to Rs 388.10 per kg in 13 lots. Analysts attributed the rise in

copper futures trade to a firm trend at the domestic physical market on pick up in demand from

consuming industries and a firm trend overseas.

NICKLE ✍

Nickle Prices drifted lower by 0.24 per cent to Rs 701.50 per kg in futures trading as speculators booked

profits at prevailing levels, driven by easing demand in the spot market. At the Multi Commodity

Exchange, nickel for delivery in February fell by Rs 1.70, or 0.24 per cent, to Rs 701.50 per kg, in a

business turnover of 11 lots. Similarly, the metal for delivery in January shed 80 paise, or 0.11 per cent, to

Rs 696.30 per kg in 811 lots. Analysts said besides profit-booking by traders, fall in demand from alloy-

makers in the spot market, mainly influenced nickel prices at futures trade.

LEAD ✍

Lead prices softened by 0.28 per cent to Rs 140.85 per kg in futures trading as traders trimmed their

positions amid subdued demand in the spot market. At the Multi Commodity Exchange, lead for delivery

in January shed 40 paise, or 0.28 per cent, to Rs 140.85 per kg, in a business turnover of 420 lots.

Similarly, the metal for delivery in February was trading down by 30 paise, or 0.21 per cent, to Rs 141.40

per kg in four lots. Marketmen said the fall in lead futures was triggered by a weak trend at the domestic

spot markets owing to sluggish demand from consuming industries, particularly battery-makers.

ZINC ✍

Prices eased by 0.36 per cent to Rs 177.55 per kg in futures trade as speculators reduced their positions,

driven by a fall in demand at the spot market. At the Multi Commodity Exchange, zinc for delivery in

January declined by 65 paise, or 0.36 per cent, to Rs 177.55 per kg, in a business turnover of 674 lots.

Likewise, the metal for delivery in February was down by 55 paise, or 0.31 per cent, to Rs 177.95 per kg

in 12 lots. Market analysts said zinc prices slide due to offloading of positions by participants amid tepid

demand at domestic spot markets.

COPPER ✍

Copper prices advanced by 0.21 per cent to Rs 377.40 per kg in futures trade on Wednesday as traders

engaged in enlarging their positions, tracking a firm trend at spot market on rising demand.

At the Multi Commodity Exchange, copper for delivery in February rose by 80 paise, or 0.21 per cent, to

Rs 377.40 per kg, in a business turnover of 589 lots. Similarly, the metal for delivery in far-month April

was trading higher by 75 paise, or 0.20 per cent, to Rs 380.90 per kg in seven lots. Analysts said widening

of positions by participants on the back of rising demand from consuming industries in the physical

market, mainly kept copper prices higher at futures trade.

LEAD ✍

Taking positive cues from the spot markets on uptick in demand, lead prices were up by 0.15 per cent to

Rs 138.10 per kg in futures trade as speculators built up fresh position. At the Multi Commodity

Exchange, lead for delivery in January edged up by 20 paise, or 0.15 per cent, to Rs 138.10 per kg, in a

business turnover of 322 lots. However, the metal for delivery in February held steady at Rs 138.50 per kg

in six lots. Market analysts attributed the rise in lead prices at futures trade to pick up in demand from

battery-makers.

NICKEL ✍

Continuing its rising streak for the third day, nickel prices traded higher by 0.64 per cent to Rs 688.20 per

kg in futures trading as participants engaged in building their positions, taking positive cues from spot

market on firm demand from alloy-makers. At the Multi Commodity Exchange, nickel for delivery in

January gained Rs 4.40, or 0.64 per cent, to Rs 688.20 per kg, in a business turnover of 366 lots.

Likewise, the metal for delivery in February was trading higher by Rs 3.80, or 0.55 per cent, to Rs 693.50

per kg in five lots. Market analysts said increasing of positions by traders following a firming trend at spot

market on strong demand from alloy-makers, mainly kept nickel prices higher at futures trade.

ALUMINIUM ✍

Prices edged up by 0.09 per cent to Rs 115.35 per kg in futures market as speculators built up fresh

positions amid pick up in demand in the spot market. At the Multi Commodity Exchange, aluminium for

delivery in January inched up by 10 paise, or 0.09 per cent, to Rs 115.35 per kg, in a business turnover of

28 lots. Marketmen said that fresh positions created by participants due to uptick in demand from

consuming industries in the physical market, mainly influenced aluminium prices at futures trade.

NCDEX - WEEKLY MARKET REVIEW

SOYBEAN✍

Soybean futures traded almost flat last week on good supplies in the physical as prices have consolidated

near 3000 levels . The demand is steady from the bulk buyers and oil millers. However, higher production

estimates by SOPA is keeping pressure on prices this season .U.S. soybean prices dropped on futures fell

on Friday on signs of weakening demand for U.S. exports as the South American harvest nears. In the

USDA’s weekly soybean report for Dec 23 - 29 exporters reported net sales of 87,500 MT for 2016/2017

- a marketing - year low -- was down 91% from the previous week and 94% from the prior 4- week

average. Moreover, rainfall forecasts in the month of January in the main soyabean growing states of

Brazil will be very beneficial for the soybean yield.

REFINE SOYA OIL✍

Refined soy oil futures closed higher last week by 1.4% tracking good physical demand by the market

participants. However, the prices have corrected in last two trading session last week due to profit

booking at higher levels. India import of soybean oil has declined to 1,64,286 tonnes in Nov from

2,56,836 tonnes in the year - ago period as supplies of soybean is good at lower prices. For the first

fortnight of January, the tariff value of crude soyoil was reduced by $ 20 per tonnes to $ 892 which is the

first reduction in three months by the government.

CRUDE PALM OIL✍

CPO Futures closed higher last week on anticipation of increase in physical demand for the oil after lower

demand during last two months due to affect on demonetization. Malaysian palm oil futures closed lower

last week, hitting their lowest in more than a week due to weaker performing rival oils and a stronger

ringgit. The current prices are already at higher levels compared to last four years. Slowing palm oil

shipments in recent weeks have also weighed on market sentiment. December exports of the tropical oil

are seen declining for a third straight month by 3%, while output is forecast to drop 8 percent to 1.45

million tonnes

SUGAR✍

Sugar Futures closed higher last week on reports that the sugar output may be lower than expected in the

country. India's sugar production in 2016/17 is likely to fall to 22 mt, down 4.3% from an earlier estimate,

as mills in its key producing state are closing early due to a cane shortage, as two years back - to - back

droughts have ravaged the cane crop in Maharashtra, the country's top sugar producer. The consumption

estimate is about 25 mt. As per sugar body, more than two dozen mills in India's top sugar producing

western state of Maharashtra have stopped crushing due to cane shortage while many more mills are

likely to shut before February end. The early shut to sugar crushing may result in lower production in

domestic market. Raw sugar futures on ICE Futures closed lower weighed by prospect of higher

production in China. China's 2016/17 sugar production had reached more than 2.3 mt by December, citing

data from the China Sugar Association.

COTTON✍

Cotton prices have moved up recently as market sentiment has improved with the Cotton Corporation of

India resorting to purchase of the commodity at commercial rates from different parts of key cotton

growing regions in the country. ICE cotton futures jumped more than 4% over the week on expectations

of improvement in demand from China and easing dollar also support prices. There are speculations that

the US 2016 cotton crop may be downgraded and could fall short of the US Department of Agriculture's

current 16.5m - bale estimate. Moreover, Speculators raised their net long in cotton by 5,573 contracts to

99,820 contracts, bringing their bullish stance back toward last month's record high in the week to Jan. 3

JEERA✍

Jeera futures closed higher last week on good physical and export demand. However, good sowing

progress of jeera in capped further gains. The progress of Jeera sowing in Gujarat is higher this season

after lagging behind in the previous week. As on 01- Jan -17, Gujarat farmers have planted jeera in

2,67,680 hectares, higher by 8400 hectares compared to last year acreage of 2,68,400 hectares till same

period. On the export front, India's jeera exports to raise about 30% to 88,000 tonnes in Apr -Dec, because

of robust demand from overseas market and negligible stocks in other exporting nations.

TURMERIC✍

Turmeric futures traded in the range last week as new season turmeric crop has now entered into the

markets in South India.The new crop is of medium quality which is fetching lower prices. On the export

front, country exported about 51,147 tonnes of turmeric during April-September period, up by 27% to

58,233 tonnes compared last year, as per government data. Expectations of increasing production in

coming harvesting season and lowering export demand in recent months are putting pressure on turmeric

prices.

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