MCX Bullion News Update

Gold prices-Spot gold was steady on Friday but is set to finish the week stuck near its cheapest in more than five years as the metal struggles against a stronger dollar ahead of a widely expected U.S. rate rise next month. New U.S. applications for unemployment benefits fell last week while a gauge of U.S. economic activity rebounded in October, signs of a healthy labor market and economy that could give the Federal Reserve confidence to raise interest rates next month. Chinese banks are growing alarmed by a rising number of defaults among jewellery manufacturers.

MCX Copper Tips-LME copper opened Thursday trading session at USD 4,618.5/mt but later bounced back due to falling dollar, to end at USD 4,607.5/mt, edging up USD 2.5/mt. There is much debate about how much further copper prices have to fall. The LME Copper price dropped to $4,590 per metric ton on Tuesday and has recovered only slightly since. It is now at its lowest level in six years and, according to Thomson Reuters, some analysts are suggesting it could fall to $4,000 per mt, that is apparently Glencore’s worst-case scenario and the number they are cutting their cloth to live with as part of their ambitious debt reduction program.

Crude oil prices-Oil futures inched up in early Asian trading on Friday, but remained near three-month lows after a persistent supply glut cut prices by up to 13 percent since the start of November. Oil markets are really moving range bound...mainly because fundamentals have yet to change," said Daniel Ang, an investment analyst at Phillip Futures Pte Ltd. "Markets are a bit fearful that Iranian oil could come in. Ang separately said in a report on Friday that prices are forming a descending triangle pattern which suggests possible drops in prices in the near term.