Gold prices in India near all-time high, India gold demand to drop, Fed to cut interest rate in July

06th July - 12th July

1. World Gold Council expects Indian gold demand to drop after import duty hike

July 11, 2019

According to world gold council, Indian Gold demand may fall by 2.4% in 2019 due to hike in import duty. Higher import duty along with weaker economic growth and the possible impact of higher gold price volatility may result in softer consumer demand. Indian government proposed to increase custom duty on gold and other precious metals from 10% to 12.5%.

Source: Live mint

2. Gold prices in India near all time high

July 11, 2019

Domestic gold prices are near all time high led by US Federal Reserve Chairman Jerome Powell indication to cut interest rate soon aimed at global slowdown concerns due to trade worries with China and other countries. On Multi Commodity Exchange of India (MCX), gold futures for August delivery rose to a lifetime high of Rs 35,145 per 10 gram this week.

Source: Financial Express

3. Crude oil prices near 6 week high on news of Gulf of Mexico storm

July 11, 2019

Oil prices hit a six-week high on Thursday as oil rigs in the Gulf of Mexico were evacuated ahead of a storm. Oil prices remained higher after U.S. oil producers cut nearly 53% of crude from the output of Gulf of Mexico due to Tropical Storm Barry which is expected to hit over the weekend.

Source: Economic times

4. Base metals under pressure over muted demand

July 11, 2019

Base metals such as Zinc, Nickel, Lead and Copper prices remained under pressure on renewed trade tension between US and China. U.S. President Donald Trump said on Thursday that China was not living up to promises it made on buying agricultural products from American farmers.

Source: Economic times

5. Fed to cut interest rate in July meeting

July 11, 2019

US Federal Reserve Chairman Jerome Powell in his testimony talked about interest rate cut later this month. He said that the US economy faced risks from flagging business sentiment, a global slowdown in manufacturing and an inflation rate that has remained persistently low.

Source: Live mint

6. Middle East tensions and OPEC supply cuts kept global Brent oil prices higher

July 9, 2019

Oil futures rose as Middle East tensions and OPEC supply cuts kept global benchmark Brent oil higher. Iranian military official’s commented that Britain’s seizure last week of an Iranian oil tanker off the coast of Gibraltar will not be unanswered. Rising tensions have brought Iran and the US close to conflict.

Source: Reuters

7. Base metals demand may pickup after Indian government promotes EV

July 10, 2019

Prices of base metals needed for making electric vehicles (EVs) and their batteries and in construction of homes are expected to move up. Tax incentives has been proposed in the budget that are seen giving a boost to affordable housing and electric mobility.

Source: Economic times

8. Area sown under kharif crops was down by 27% to 234.33 lakh hectare

July 7, 2019

Indian government data suggests that area sown under kharif crops was down by 27% to 234.33 lakh hectare amid deficient monsoon rainfall last month. Sowing of kharif crops begins with the onset of southwest monsoon, which this year arrived late delaying the sowing operation and the rainfall remained deficient by 33%.

Source: Livemint