 "Metals, oil fall on worries of slowing economies")
Central banks across the world are holding back policy actions ahead of Brexit, the possible exit of Britain from the European Union.
While the referendum is on June 23, the US Federal Reserve’s decision not to raise rates has helped gold trade at $1,311 announce, the highest since July 2014, as looming uncertainties and economic worries have forced investors to take shelter in the yellow metal.
The Bank of Japan also continued to hold rates, indicating it didn’t see any signs of improvement, The European Central Bank also retained rates ahead of looming uncertainties in Britan as Brexit could put pressure on the pound, which could lead to a fall. Both central banks on Thursday declared they had agreed to provide liquidity to each other if needed.
Base metal prices improved as the dollar weakened after the Fed’s move. However, crude oil has continued its slide.
In India, August contracts in gold crossed Rs 31,000 per 10g on the Multi Commodities Exchange (MCX) but the day’s session closed marginally lower. At Mumbai’s Zaveri Bazaar spot market, 995- purity standard gold closed at Rs 30,250 per 10 gramme, the highest in six weeks and up Rs 475 per 10g from Wednesday. The $30 per ounce discount prevailing in the spot market has increased the gap between spot and MCX prices.
The Bank of Japan has retained to negative rate, citing risks to a delay in changing the country’s deflationary mindset, saying it needs to be mindful of risks to price trends.
This has further pushed up gold prices. Silver has also followed gold. It closed 1.5 per cent higher at Rs 42,340 per kg in Mumbai.
Benchmark copper on the LME in early morning trade was down 1.3 per cent at $4,574 a tonne. Similarly, three-month aluminium was down to $1,609 a tonne, zinc to $2,014, lead to $1,690 and tin was at $16,975. Nickel slid to $8,895 a tonne.
While the referendum is on June 23, the US Federal Reserve’s decision not to raise rates has helped gold trade at $1,311 announce, the highest since July 2014, as looming uncertainties and economic worries have forced investors to take shelter in the yellow metal.
The Bank of Japan also continued to hold rates, indicating it didn’t see any signs of improvement, The European Central Bank also retained rates ahead of looming uncertainties in Britan as Brexit could put pressure on the pound, which could lead to a fall. Both central banks on Thursday declared they had agreed to provide liquidity to each other if needed.
Base metal prices improved as the dollar weakened after the Fed’s move. However, crude oil has continued its slide.
In India, August contracts in gold crossed Rs 31,000 per 10g on the Multi Commodities Exchange (MCX) but the day’s session closed marginally lower. At Mumbai’s Zaveri Bazaar spot market, 995- purity standard gold closed at Rs 30,250 per 10 gramme, the highest in six weeks and up Rs 475 per 10g from Wednesday. The $30 per ounce discount prevailing in the spot market has increased the gap between spot and MCX prices.
The Bank of Japan has retained to negative rate, citing risks to a delay in changing the country’s deflationary mindset, saying it needs to be mindful of risks to price trends.
This has further pushed up gold prices. Silver has also followed gold. It closed 1.5 per cent higher at Rs 42,340 per kg in Mumbai.
Benchmark copper on the LME in early morning trade was down 1.3 per cent at $4,574 a tonne. Similarly, three-month aluminium was down to $1,609 a tonne, zinc to $2,014, lead to $1,690 and tin was at $16,975. Nickel slid to $8,895 a tonne.