Home Arrow Commodity News Arrow Rupee strengthens against dollar, crude oil prices remain low

Commodity World Roundup

22nd Dec – 28th Dec – Rupee strengthens against dollar, crude oil prices remain low & bullish global gold prices

Rupee strengthens against dollar, crude oil prices remain low

1. GOLD PRICES STEADY AS ECONOMIC WORRIES SUPPORT, GAINS IN EQUITIES DRAG

December 28, 2018

Gold prices jumped in the domestic markets following a strong bullish move in global gold prices, supported by worries over the economic growth. In global markets, gold prices continued the bullish move supported by weakness in the US Dollar Index and selling in equities. The precious metal continues to look bullish.

Source: Economic Times

2. OUTLOOK FOR OIL PRICES BLURRED AMID GROWING UNCERTAINTIES

December 28, 2018

Crude is trading lower by 38% compared to its October peak which has given India a lot of comfort which is a large importer of the commodity. This current weakness in oil is driven by the weak outlook of the global economic growth. Tensions between US and China along with the US government shut down and also increased supply from the US has resulted in weaker crude oil prices.

Source: Economic Times

3. GOVT PEGS FY19 CURRENT ACCOUNT DEFICIT AT 2% OF GDP ON SLIDE IN OIL PRICES

December 27, 2018

With global crude oil prices below $50 per barrel, the Indian government is confident that the Current Account Deficit (CAD) for the year 2018-19 can be maintained at about 2% of the GDP (Gross Domestic Product). Oil prices are expected to remain weak which is likely to continue helping the CAD (Current Account Deficit).

Source: Business Standard

4. GOLD EDGES UP BUT RISK-ON SENTIMENT LIMITS GAINS

December 27, 2018

Gold rose strongly on Thursday and was well supported by the weaker dollar as investors bought into the safe haven. Gold rose along with the equity markets as strong momentum continued in the precious metal. There has been extensive surge in the activity in the gold exchange traded funds holdings and there is no shortage of momentum there as there are a few uncertainties heading into 2019. SPDR holdings have risen 8 percent after touching 2.5 year lows in October.

Source: Economic Times

5. DEMAND FOR GOLD REMAINS HIGH IN DOMESTIC MARKET DESPITE SHARP PRICE HIKE THIS YEAR

December 26, 2018

Indians are traditionally biased towards gold which has a special place in the Indian households and culture. Festive season demand during 2018 has been strong and has supported gold prices. Even with high gold prices, the domestic demand has remained strong. Depreciating Indian Rupee was a key reason along with strong international gold prices for the rise in the domestic gold prices.

Source: : Live Mint

6. OIL PRICES FALL BELOW $50 AS MARKET CHAOS COUNTERS OPEC CUTS

December 27, 2018

Crude oil is trading weak after it declined sharply from its October highs and is trading near the 1.5 year lows; it rebounded on Wednesday after a sharp decline that it saw in the recent past. Crude has been caught in the wider market weakness due to worries over US government shutdown, US China trade dispute and US government shutdown. There is a concern about demand which has led to a sharp slide in crude prices.

Source:Live Mint

7. RUPEE CLIMBS OVER 30 PAISE IN EARLY TRADE

December 26, 2018

Rupee has strengthened against the US Dollar following weak crude oil prices and weakness in the greenback due to the political uncertainty in the US. Rupee has been consolidating in the 69.70-70.30 range as many global markets are shut. A sharp decline in the international crude prices has also helped the rupee appreciate.

Source: Economic Times