Indian Gold prices at record highs, US Navy destroys Iranian drone & Nickel prices at multi-month highs

13th July – 19th July

1. Indian Gold prices at a record high along with decent rebound in silver prices

Jul 18, 2019

A surge in prices of global precious metals along with an increase in import duty have contributed to this move. Gold and Silver prices have rallied in India this week following a rally in global markets. MCX, August gold contracts were today trading higher at ₹35,094, after hitting a new high of ₹35,145 last week. The October gold contracts were near ₹35,600. The September silver contracts on MCX zoomed 0.72% to ₹40,467 per kg, reflecting a surge in global prices.

Source: Live Mint

2. US Navy destroyed Iranian drone, pushed Crude oil prices higher

Jul 19, 2019

Oil prices rallied after the US Navy destroyed an Iranian drone in the Strait of Hormuz. This attack on an Iranian drone has raised tensions in the Middle East. The United States said on Thursday that a US Navy ship had "destroyed" an Iranian drone in the Strait of Hormuz after the aircraft threatened the vessel, but Iran has denied any such attack.

Source: Zee Business

3. Rupee trades positive from Fed Reserve comment

Jul 19, 2019

The rupee appreciated as market participants expect an aggressive interest rate cut by the US Federal Reserve later this month. The rupee along with most Asian currencies was trading in the positive territory following dovish comments from both the New York Fed President John Williams and Vice Chair Richard Clarida.

Source: Economic Times

4. Nickel prices are on multi-month high on supply concerns in Indonesia

Jul 19, 2019

Nickel rallied on Indonesian supply concerns. Indonesia relaxed a ban to export nickel ore in 2017 but said that exports will be restricted again in 2022. Nickel prices rallied on increased demand from industrial buyers along with supply concerns in Indonesia. Market open interest in Shanghai nickel increased to the highest since April, and was up more than 50% since July 5. The trading volume for the most active contracts on Thursday was around 1.26 million lots, almost double the 30-day average.

Source : Reuters

5. U.S retail sales rose 0.4% last month against forecast of 0.1% in June

Jul 16, 2019

The U.S Commerce Department has said that retail sales rose 0.4% last month as households stepped up purchases of motor vehicles and a variety of other goods. Economists polled by Reuters had forecast retail sales edging up 0.1% in June.

Source: CNBC

6. Aluminium demand to pickup in second half of 2019 and 2020

Jul 17, 2019

Global aluminium supplies have stabilized after sanctions were waived by the US on Rusal (the world's second-largest Aluminium producer). Further, demand will pick up after China aims to completely ban the import of scrap and metal waste by the year 2020. Aluminium prices may remain firm in H2'19 as the Indian demand is also projected to grow. India’s demand for Aluminium is projected to be higher in the next five years. Indian demand is supported by robust growth expected in the transportation, construction, and packaging sectors.

Source: Business Standard

7. India’s imports and exports both dropped in June

Jul 16, 2019

India’s Imports declined 9% to $40.29 billion in June due to falling prices of petroleum products. India’s trade deficit remained at $15.28 billion in June’19 against $16.6 billion in June’18. On the other hand, exports entered a no negative zone and dropped to $25.01 billion with a record drop of 9.71%.

Source: Indian Express

8. Cotton prices may receive support if monsoon rains lead to a decrease in production

Jul 13, 2019

Cotton prices in the domestic market have risen sharply on the MCX in the last few days as delay in the onset of monsoons have decreased sowing of cotton seeds by 8% till July 5th.The poor sowing and huge drop in the prices last year have led to the farmers sowing more remunerative crops such as oilseeds and soybeans.

Source: Economic Times