Domestic gold futures remained muted today after nearing their record high in the previous session after overseas markets steadied. But, weakness in the dollar, which fell to a one-year low against the euro on Thursday, may support international gold, which competes with the U.S. currency as an investment. USD recovered on short-covering today in the morning session. The overall sales have fallen 50 per cent as buyers are holding gold anticipating better returns. Gold imports have been sluggish so far this year and were at 81.2 tonnes between January and August 2009, compared to 261 tonnes in the same period last year.
Crude oil plummeted consecutively for a second day, paring its weekly gain, as US dollar strengthened against the euro. Crude gained this week, a second straight weekly gain, on the back of optimistic data which showed an expansion in housing starts and industrial capacity utilization in the U.S. Crude prices also rose after Federal Reserve Chairman Ben S. Bernanke said the worst recession in seven decades has probably ended. U.S. crude stockpiles dropped to the lowest since January, a Sept. 16 Energy Department report showed.
Base metal complex ended lower yesterday taking cues from choppy trading on the LME. Prices took little cues from the positive economic data releases from the US. Though there are views over an economic recovery in progress, markets are still divided over that thought and that has led to volatility. Copper prices ended in the red yesterday as physical demand for copper has almost entirely stopped at these levels in Asia. Dollar Index has initiated its journey upward in the morning as robust US economic data.
