Precious metals news

Precious metals prices rose yesterday as a drop in the dollar triggered bargain hunting after the previous session's sharp drop on news of possible gold sale by Cyprus and uncertainty over Fed's monetary stimulus.  Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange traded fund, stood at 1181.42 tonnes by Apr 11, down by 2.11 tonnes from the previous business day. Holdings in the world's largest silver backed exchange-traded fund iShares Silver Trust stood at 10497.59 tonnes by Apr 11, remains unchanged from the previous business day.

Russia's top gold miner Polyus Gold said on Thursday its sales fell 4 percent, yearon- year, to USD524 million during the first three months of the year due to a gold price decrease. The growth of assets under gold exchangetraded funds (ETFs) in India slowed to 18 percent in the fiscal year ended March 31, 2013, compared with an average of more than 100 percent since inception in 2007, as investors sought refuge in debt instruments due to sagging gold prices.

Fundamental Outlook:

Precious metals prices are trading little changed on COMEX today. We expect prices to remain supportive on account of the ongoing accommodative policies by the US Fed and BOJ.

Natural Gas gains on market talk of bullish supply data

Natural gas futures shot up in afternoon trading on Wednesday, approaching 20-month highs on talk weekly supply data due for release on Thursday will reveal rising demand for the commodity.

On the New York Mercantile Exchange, natural gas futures for delivery in May traded at USD4.093 per million British thermal units, up 1.88%. The commodity hit a session low of USD4.026 and a high of USD4.160.

The U.S. Department of Energy will release weekly supply data on Thursday, though early withdrawal estimates range from 20 billion cubic feet to 36 billion cubic feet.

Inventories increased by 11 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 15 billion cubic feet.

Total U.S. natural gas in storage stood at 1.687 trillion cubic feet as of last week, 32% lower than last year at this time and 2.1% below the five-year average. Gas inventories had held above the five-year average since September 2011.

Meanwhile, updated weather forecasts called for a return of below-normal temperatures for central portions of the U.S., which pushed up prices even further.

U.S. Elsewhere on the NYMEX, light sweet crude oil futures for delivery in May were up 0.28% and trading at USD94.47 a barrel, while heating oil futures for May delivery were down 0.56% at USD2.9449 per gallon.

Kingfisher fails to provide clear revival plan: Lenders

Kingfisher Airlines has submitted a revival plan to the Directorate General of Civil Aviation (DGCA) today, although the plan has no clarity on funding source and timeframe for re-starting operations, say sources.
After submitting the plan, Sanjay Aggarwal, the airline's CEO said that initial funding of Rs 650 crore will be infused by parent UB Group. He however did not divulge more details on when the airline will be able to resume flights.

Exclusive banking sources told CNBC-TV18 that the plan in unclear and inconclusive like previous plans submitted by the airline. The airline has stopped flying since October last year following a strike a section of employees over delay in salary payment. The airline has since then talking about roping in investors to raise funds but there is no development on this front.

The airline's flying license expired in December 2012, and the DGCA has refused to renew it due to the airline’s inability to raise funds

It is  extremely crucial for chairman Vijay Mallya to provide a concrete revival plan which will help him start operations. .

But the latest plan submitted by Aggarwal has upset bankers since it lacks concrete initiatives.

Saddled with over Rs 7,000 crore debt, the airline has faced flak for its inability to repay lenders. KFA had in January this year said that it will resume operations by March with seven aircraft and will later extend it to over 20. However, it has not been able to convince the regulator and also its lenders about how it will raise funds. According to a report in the Financial Express, State Bank of India has sent a legal notice to KFA seeking recovery of loans. KFA can either suggest an out-of-court settlement or take legal recourse, in which case bankers will move the debt recovery tribunal (DRT), the report said further quoting a banker.

Goldman Sachs cuts gold price targets, recommends to short

Goldman Sachs cut its gold price forecasts for a second time in six weeks on Wednesday, citing expectations for an acceleration in US economic growth and the metal's recent lacklustre price performance. The bank lowered its 2013 average gold price forecast to $1,545 an ounce from $1,610 and its 2014 price view to $1,350 an ounce from $1,490.
It also advised that investors close a long COMEX gold position, recommended in late 2010, and replace it with a short COMEX position.
Goldman had already cut its gold forecasts in late February, reducing its 2013 price view from $1,810 an ounce. Its current forecast amounts to a fall in the average gold price year-on-year for the first time since 2001, when the metal's 12-year bull run began.

"Despite resurgence in euro-area risk aversion and disappointing U.S. economic data, gold prices are unchanged over the past month, highlighting how conviction in holding gold is quickly waning," Goldman said in the note.

"With our economists expecting few ramifications from Cyprus and that the recent U.S. slowdown will not derail the faster recovery they forecast in (the second half of 2013), we believe a sharp rebound in gold prices is unlikely."

It also cut its three, six and 12-month COMEX gold price forecast to $1,530, $1,490 and $1,390 a troy ounce from $1,615, $1,600 and $1,550 a troy ounce, respectively.

Goldman recommended closing the long COMEX gold position that it first initiated on October 11, 2010 for a potential gain of $219 a troy ounce.

"While there are risks for modest near-term upside to gold prices should US growth continue to slow down, we see risks to current prices as increasingly skewed to the downside as we move through 2013," Goldman said.

"In fact, should our expectation for lower gold prices continue to prove correct, the fall in prices could end up being faster and larger than our forecast, as aggregate speculative net long positions across COMEX futures and gold ETFs remain near record highs."

Spot gold was down 0.3 percent at $1,580.71 at 0926 GMT, while US gold futures for June delivery were down 0.4 percent at $1,580.80.

SEBI has gone beyond SC order, says Sahara Boss Roy

The row between Sahara Group and market regulator Securities and Exchange Board of India (SEBI) is likely to get even nastier as Group Chief Subrata Roy is calling market regulator's action against the group an act of personal vengeance.
Playing a victim, Subrata Roy minced no words in criticizing the market regulator in an exclusive interview to CNBC-TV18 where he claimed that SEBI was making up stories without checking facts. He even went on to say that SEBI had gone beyond Supreme Court's order and was breaking all rules and law.

The market regulator had today called Roy and three other group directors to discuss sale of group's properties and recovery of unpaid dues. SEBI and Sahara Group has been in a tussle after the Supreme Court order directed the market regulator to attach properties of Sahara Group in connection with the refund case involving an estimated Rs 24,000 crore payment to over 30 million small investors.

In February, SEBI had ordered a freeze on the assets and bank accounts of the two Sahara group companies namely Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC).

Roy said that in the meeting held today, SEBI demanded details of his personal properties. Surprisingly, Roy who is known for living a lavish life claimed to have no immovable properties and said that he had cash of around Rs 2 crore in bank accounts and gems and jewellery worth Rs 1 crore only.

"Company provides us all facilities...personally I am not a very rich man, the company is very rich," he said. 

Roy said that many other government investing agencies were activated against the group and hinted that there were political motives behind  actions of Reserve Bank of India and SEBI. He promised to come out with the truth and proofs of vengeance against the group at the right time.

On various occasions earlier, including through newspaper advertisements, Sahara Group has accused SEBI of not providing an opportunity to meet the group chairman Roy for presenting their point of view. Sahara claims that it has already repaid most of the investors directly and its total outstanding refund liability was less than Rs 5,120 crore, which it has given to SEBI.

Now, the Securities Appellate Tribunal (SAT) is scheduled to hear Subarta Roy's appeal against a previous SEBI order for attachment of its bank accounts, assets and investments on April 13.

Buy Gold around Rs 29550; SL Rs 29430: Nirmal Bang

Nirmal Bang has come out with its technical report on metals and energy. According to the research firm, Gold prices are expected to witness a range bound move from Rs 29850 to Rs 29500. One can trade within the range.

Gold: One can buy around Rs 29550 for a bounce maintaining a stop loss below Rs 29430.

Silver prices are expected to test Rs 52800 Rs 53000 on higher end. One can buy around Rs 51900 maintaining a stop below Rs 51500.

Copper prices are expected to edge higher till Rs 418 Rs 419 one can buy on dips around Rs 413 -412 with a stop loss below Rs 409.50.

Nickel prices are expected to witness a range bound move from Rs 870 to Rs 890. One can trade within the range.

Lead prices are expected to trade sideways from Rs 114 to Rs 112. one can buy with a stop loss below Rs 111.20

Crude prices are expected to hold Rs 5040 on lower end we expect a range bound session from Rs 5170 to Rs 5040 for the day.

Sell Chana on pullbacks: Geojit

Geojit Comtrade has come out with its report on agricultural commodities. The research firm has recommended to buy Jeera on dips, sell RM Seed below Rs 3610 and Chana on pullbacks in its report dated April 10, 2013.

Jeera May NCDEX: Trend remains positive and as prices stays above 13900, could see buying towards 14300 levels for the day.

RM seed May NCDEX: In the daily candle stick, dark cloud cover pattern indicates bullish trend is exhausted and expect to see lower correction if prices break below 3610 levels.

Chana May NCDEX: If unable to trade above 3594 could see profit booking towards 3545 levels.

Pepper May NCDEX: Pepper prices bounced back from the low of 35435 and closed the day at 35700. As the daily RSI is still showing negative divergence, expect a lower price correction towards 35200 followed by 34800/34500 levels. On the higher side, any trades above 36000 could negate such bearish expectations and start the next leg of bullish rally towards 36300/36500 levels.

Turmeric May NCDEX: Turmeric prices continued the upside momentum and closed at 7060 levels. In the hourly chart, if prices are able to sustain above 6910, sentiments favour a big rally, which may cater prices higher towards 7176 or even more towards 7216 levels. On the lower side, deep correction is seen only a break below 6810 levels for the day.(http://www.moneycontrol.com/news/brokerage-recos-commodities/sell-chanapullbacks-geojit-comtrade_850335.html)

Buy MCX Gold at Rs 29650; target Rs 29740: Dani Comm

Dani Commodities has come out with its report on bullion, metals and energy. According to the research firm, one can buy MCX Gold at Rs 29650 with a stop loss of Rs 29600 for the target of Rs 29740.

Indian Cotton Federation Reduces Cotton Production Estimates To 326 Lakh Bales For 2012-13: As per the latest estimate by Indian Cotton Federation , Indian cotton production for 2012-13 is currently estimated at 326 lakh bales against 330 lakh bales projected by the Cotton Advisory Board (CAB) . Indian Cotton Federation estimated the Gujarat crop at 83 lakh bales , down 2 lakh bales from CAB estimates while Maharashtra at 74 lakh bales, down 1 lakh bales from other projections.

MCX GOLDInternational: Major Support at USD1580. Bearish below USD1580.
Domestic: Buy at 29650, Stoploss 29600, Target 29740.

MCX SILVERInternational: Major Support at USD28. Bearish below USD28.
Domestic: Buy at 52150, Stoploss 51950, Target 52550.

MCX COPPERDomestic: Buy at 413.20, Stoploss 411, Target 4165.

MCX LEADDomestic: Buy at 113, Stoploss 112.50, Target 113.70.

MCX ZINCDomestic: Buy at 103.40, Stoploss 103, Target 104.

MCX ALUMINIUMDomestic: Buy at 103.20, Stoploss 102.80, Target 103.80.

MCX NICKELInternational: Buy at 884, Stoploss 878, Target 894.

MCX CRUDE OILInternational: Major Support for WTI at USD89 Bullish above USD 91
Domestic: Buy at 5110, Stoploss 5085, Target 5140.

MCX NATURAL GASDomestic: Sell at 220, Stoploss 222, Target 217.

Copper may rally on ongoing strike at Chile: Nirmal Bang

Nirmal Bang has come out with its report on industrial metals. According to the research firm, a further rise is expected in the prices of copper on account of the ongoing strike at Chile, the highest copper mining nation.

Industrial metals prices rose yesterday, rebounding from falls the previous week, as the euro gained ground against the dollar and a strike in major producing nations raised concerns over temporary supply constraints.

Chilean state miner Codelco's unionized workers said on Monday they would conduct a 24-hour work stoppage at all units of the world's top copper miner on Tuesday for safety improvements and greater job security.

Aurubis, Europe's biggest copper smelter, will increase capacity at its two smelters in Bulgaria and Germany as the market moves into a bigger surplus, Chief Executive Peter Willbrandt said on Monday.

Chinese steel futures rose on Monday to their highest in more than a week in anticipation of improving demand in the second quarter, supporting raw material iron ore, although large steel inventories may limit gains.

Global miner Anglo American should produce 3 percent more copper this year than last in part as the promising but troubled Collahuasi mine turns the corner after a tough 2012, the company's head of copper told Reuters.

The costly port strikes that recently hit top copper producer Chile and detained an estimated 9,000 tonnes of the red metal's exports per day were an unwelcome reminder for miners of the risk of labor action during an electoral year.

Industrial metals prices are trading higher on international bourses today. We expect a further rise in the prices of copper on account of the ongoing strike at Chile, the highest copper mining nation

Sell MCX Silver May around Rs 51600: Fortune Financial

Fortune Financial Services has come out with its report on bullion, base metals, Crude oil and Natural Gas. The research firm says one can Sell MCX Silver May contract around Rs 51600 with stoploss of Rs 52100 for the target of Rs 50900-50400.

MCX Gold June Contract is looking negative for the day. Market may find support near 29460 & 29350; intraday resistance can be seen near 29640 & 29750. Day traders are advised to sell intraday on rise. (Sell around 29640 with SL 29750, for the target of 29460 & 29350.)

MCX Silver May Contract is looking negative for the day. Market may find support near 50900 & 50400; intraday resistance can be seen near 51600 & 52100. Day traders are advised to sell intraday on rise. (Sell around 51600 with SL 52100, for the target of 50900 & 50400.)

MCX Natural Gas April contract is looking slightly negative the day. Market may find support near 220 & 217 intraday resistance can be seen near 225 & 228. Day traders are advised to sell intraday on rise. (Sell around 225 with SL 228 for the target of 220 & 217.)

MCX Crude oil April contract is looking negative for the day. Market may find support near 5050 & 5000; intraday resistance can be seen near 5120 & 5170. Day traders are advised to sell intraday on rise. (Sell around 5120 with SL 5170, for the target of 5050 & 5000.)

MCX Copper April contract is looking negative for the day. Market may find support near 405 & 402; intraday resistance can be seen near 410 & 413. Day traders are advised to sell intraday on rise. (Sell around 410 with SL 413, for the target of 405 & 402.) 

MCX Lead April contract is looking negative for the day. Market may find support near 111.40, 110.50, intraday resistance can be seen near 112.80 & 113.80 Day traders are advised to sell intraday on rise. (Sell around 112.80 with SL 113.80 for the target of 111.40 & 110.50) 

MCX Nickel April contract is looking negative for the day. Market may find support near 872, 860, intraday resistance can be seen near 889 & 898. Day traders are advised to sell intraday on rise. (Sell around 889 with SL 898 for the target of 872 & 860.) 

MCX Aluminium April contract is looking negative for the day. Market may find support near 102.10, 101.10 intraday resistance can be seen near 103.40 & 104.50 Day traders are advised to sell intraday on rise. (Sell around 103.40 with SL 104.50 for the target of 102.10 & 101.10)
( http://www.moneycontrol.com/news/brokerage-recos-commodities/sell-mcx-silver-may-around-rs-51600-fortune-financial_849400.html)

Sell MCX Silver May around Rs 52200-52250: Way2Wealth

MCX May Silver's weakness continues and it declined to as low as 50423 and finally closed at 51570 levels, down by 3% on W-o-W basis. It is visible from the chart that silver prices are traveling in a descending channel, which is signifies the bearish trend which would be intact until it breaches the channel on the upside.

However, during the initial session of the week there is a possibility for a mild pull back towards the channel resistance of 52200 levels, which one can unitize for creating fresh shorts. Key momentum indicator RSI has gone into sell mode and MACD is still trading below signal line which supports the view.

Action - Sell
Entry - Near 52200-52250
Target - 50500
Stop - 53110

MCX Crude oil prices have respected the falling trend-line resistance of the triangular pattern and ended in a negative zone. Also we can observe, it has formed a trend reversal candle stick pattern called as "closed marubozu" on weekly charts which is another strong supporting evidence for a bearish momentum in coming sessions and downside targets would be around 5030 followed be 4955 levels.

However, any pull back will be restricted at 5180 levels and bring some selling pressure from the same. RSI-14 period & Momentum indicator both are placed in negative territory supporting the view.

Action - Sell
Entry - 5170-5180
Target - 5030/4955
Stop - 5277

Buy MCX Gold June around Rs 29580; SL 29480: Fortune Fin

Fortune Financial Servies has come out with its report on commodities. According to the research firm, MCX Gold June Contract is looking positive for the day. Market may find support near 29580 & 29480; intraday resistance can be seen near 29760 & 29880. Day traders can buy intraday on dips.

Bullion: Domestic gold trading higher a similar rise in the COMEX. Gold prices jumped Friday after a weaker-than-expected U.S. payroll report sparked fresh hopes for an extended period of gold-friendly stimulus from the U.S. Federal Reserve. Economists surveyed by Dow Jones Newswires had forecast that nonfarm payrolls would rise by 200,000 and the unemployment rate would hold steady at 7.7 percent.

Energy: Domestic oil futures were trading lower tracking benchmark contracts on the New York Mercantile Exchange, where prices declined following release of discouraging US non-farm payrolls data. In domestic market, crude oil traded down on weak NYMEX cues and appreciation in rupee against the dollar.

Metals: Base metal futures on the MCX were trading lower tailing similar cues from benchmark London Metal Exchange contracts, as market came under pressure following disappointing US non-farm payrolls data. Bearish comments by European Central Bank's President Mario Draghi hinting at downside risk to Eurozone economic recovery also weighed on sentiment.

MCX Gold June Contract is looking positive for the day. Market may find support near 29580 & 29480; intraday resistance can be seen near 29760 & 29880. Day traders are advised to buy intraday on dips. (Buy around 29580 with SL 29480, for the target of 29760 & 29880.)

MCX Silver May Contract is looking positive for the day. Market may find support near 50800 & 50200; intraday resistance can be seen near 51700 & 52200. Day traders are advised to buy intraday on dips. (Buy around 50800 with SL 50200, for the target of 51700 & 52200.)
 http://www.moneycontrol.com/news/brokerage-recos-commodities/sell-mcx-silver-may-around-rs-52200-52250-way2wealth_848688.html)

Four key events to watch out next week

It has been a bearish start to the first week of the new financial year, with the Sensex lighter by 400 points. The weakness spread to large caps as foreign-owned exchange traded funds are said to have been net sellers of equities, faced with redemption requests from their unitholders in home markets. This has further undermined sentiment, already weighed down by political uncertainty and a slowing economy.

US and Japanese shares are trading at multi-year highs and key European markets have stabilized after the initial nervousness over the bail-out of Cypriot banks.

Investors will now turn their attention to four key events next week.

1. April 10: Trade Balance Data - March

The trade balance data which is the net figure of India’s exports and imports for March, will signal how the annual current account deficit numbers will shape up for FY13. The current account deficit number hit a record high of 6.7 percent of GDP in the October-December quarter, driven mainly by huge trade deficit. The market will closely monitor this figure.

2. Indian Rupee

Another key variable to track will be the rupee. The currency, trading at one-month low, is unable to take advantage of gold prices fallen to a 10-month low. Gold import is one of the prime factors for record-high current account deficit. The other import constituent, Brent crude is trading close to $106.50 per barrel, a fresh five-month low.

3. April 12: Index of Industrial Production (IIP) - February

Index of Industrial Production (IIP) numbers for the month of February will be announced. The eight core industries growth, accounting for 38 percent of the IIP, contracted 2.5 percent in February, a record low performance in decades which should prepare the market for some depressing data. The IIP numbers for January was 2.4 percent, higher than the 1.2 percent estimated by a CNBC-TV18 poll.

4. April 12: Infosys - Fourth Quarter Earnings

Infosys will announce its fourth quarter numbers on April 12 and set the tone for the near term movement in IT shares. Angel Broking expects former IT bellwether’s EBITDA margins to decline by 91 basis points quarter-on-quarter to 27.6 percent, because of wage hike of 2-3% to onsite employees. The annual guidance for FY14 will be the deciding factor

Government decontrols sugar

Cabinet Committee on Economic Affairs (CCEA) on Thursday finally decided to decontrol sugar with certain riders. The sugar industry was the only industry left under the government control. It is learnt that the decontrol is largely in line with recommendations made by the Rangarajan committee .

What does decontrol mean?

1. Decontrol means no government control. It will no longer force mills to sell sugar to the government at a discount and wont put a limit on the amount that they can sell in the open market.

2. No levy obligation on sugar mills for 2 years. Levy sugar is the amount of sugar set aside from the total production for Public Distribution System (PDS). In levy sugar system, millers were required to contribute 10 percent of their output to the Centre for running ration shops at cheaper rate. This costed the industry Rs 3,000 crore a year, an amount sugar industry will now be able to save.

3. Release order mechanism by which government directed sugar companies as to when, how much to release sugar now goes away.

4. The government will buy sugar from the open market at market rates and subsidise it to PDS. The government will pay the difference between ex-mill and PDS price. Cabinet fixed the price of levy sugar at Rs 13.50 a kg in 2002 and it was never changed since then. 

5. The government will bear Rs 5300 crore PDS sugar subsidy.

6. No hike in excise duty on sugar. Currently it is Rs 95 per quintal

7. Ex-mill sugar price will be capped at Rs 32 per kg for PDS

The government maintained that the decision will not lead to any rise in retail prices of sugar. However, it would double the government's subsidy burden to Rs 5,300 crore annually from about Rs 2,600 crore.

Why it was important to decontrol?

• Controlling sugar industry, farmer is politically beneficial in vote bank politics especially for UP, Maharashtra government.
• Sugar companies say government shackles mean thin profits, new industry doesn't come up and in turn sugar is imported.
• Also decontrol means farmers will get timely and better remuneration from sugar companies. 

RBI gives 17 licences for White ATMs, Tatas to open soon

The Reserve Bank of India (RBI) has identified 17 non-bank entities out of 19 which applied for setting up White Label ATMs. Two of them including a Tata group company are expected to be operational in next few months.
"We had already issued five licences and recently we have given seven more," Vijay Chugh - chief general manager (Department of Payment & Settlement Systems), RBI; told reporters speaking on the sidelines of a conference here in Mumbai.

"So far, we have found 12 eligible candidates for setting up White Label ATMs. We are expecting one or two operators to be in business in the next few months. One of them is Tatas. Those all are non-bank corporate entities. In next three years 1.5 lakh such ATMs would be rolled out if all 17 become operational," he said.

What is White Label ATM (WLA)?

White Label ATM means an automated teller machine that does not have any label of any bank. Here, there are three inherent parties: the non-bank corporate entity, authorized ATM network operators/card payment network operators like RuPay, Visa or MasterCard and a sponsor bank for cash management, funds settlement as well as customer grievance redressal.

In June, 2012; the central bank had issued guidelines for setting up of White ATMs. It had designed three schemes to apply for the same. Each scheme has certain criteria considering banking coverage ranging from tier I tier VI cities and towns. 

It is learnt that most of the applicants have applied for the scheme A which is 3:1 in favour of rural set-ups. This means, for every 3 WLAs installed in Tier III to VI centres, 1 WLA can be installed in Tier I to II centres. Out of the 3 WLAs installed in Tier III to VI centres, a minimum of 10 per cent should be installed in Tier V & VI centres.

Charges for WLAs would be as par the banking sector. It is Rs 15 per transaction. The operator will not charge the customer but the bank will charge, Chugh said.

Why WLAs?

The basic purpose of setting up is to enhance the financial inclusion. A bank can save huge costs on account of setting up ATMs. On an average, a bank incurs a capital expenditure of around Rs 3-4 lakh per ATM buying. Additionally, operation costs come in the range of Rs 40,000-50,000 per month per ATM depending on certain factors like rent, security and electricity.

Point of Sales (PoS) terminals

Way back in June, 2009; RBI had allowed a maximum withdrawal of Rs 1,000 per day from  PoS terminals using debit cards. However, the banking regulator so far did not observe rising demand for this facility.

"It (demand) is not picking. If the demand picks up, we will definitely have a relook to enhance the limit of Rs 1,000. Merchants probably don't advertise this facility. People don't know they can withdraw money from POS. If merchants put up some ad campaign people may take up for that," Chugh said.

RBI is also planning set 20 lakh PoS terminals next two years. To encourage cashless transaction it will focus more on internet-tele-mobile bankings.

NPCI initiative

RBI CGM was addressing a conference held by NPCI (National Payment Corporation of India) - an Indigenous payment gateway company, promoted by ten banks under the aegis of RBI. NPCI tied up with Discover Financial Services - a US based global payment services company to launch "Discover and Diners Club" cards in India.

"By June, we will also issue RuPay Global cards in association with four banks including Bank of Baroda , Canara Bank , UCO Bank and Saraswat Bank. Customers of those banks will be using those cards globally in all DFS networks," A P Hota, MD & CEO, NPCI said.

Rise in US unemployment numbers to limit downside in Gold

Precious metals prices fell for a third straight session yesterday, hitting a 10-month low as unprecedented monetary stimulus from the Bank of Japan and hopes for another European Central Bank rate cut failed to stem heavy selling of bullion by funds.

Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange traded fund, stood at 1206.22 tonnes by Apr 04, remains unchanged from the previous business day.

Holdings in the world's largest silver backed exchange-traded fund iShares Silver Trust stood at 10677.89 tonnes by Apr 04, remains unchanged from the previous business day.

Gold mine production rose to a record high in 2012, while jewellery fabrication fell 4.2 percent, mainly due to a drop in demand in India along with a fall in the rupee, metals consultancy GFMS said on Thursday.

World investment in gold, which covers implied net investment, coin and bar buying, eased 2 percent to a four-year low of 1,605 tonnes. Implied net investment nearly trebled to 294 tonnes compared with 2011, although remaining well below 2009 record levels of 1,130 tonnes.

Precious metals prices are trading lower on COMEX today. In the evening session we have the Non- Farm Payrolls and Unemployment rate data to be released by the US. Any further rise in employment numbers may limit the downside in bullion prices

Natural Gas jumps up as bottom fishers look past supply data

Natural gas futures jumped up in afternoon trading on Thursday after investors viewed the commodity, which dropped on the release of official supply data earlier, as oversold.

On the New York Mercantile Exchange, natural gas futures for delivery in May traded at USD3.942 per million British thermal units, up 1.09%.

The commodity hit a session low of USD3.862 and a high of USD3.966.

The U.S. Energy Information Administration said in its weekly report released earlier that natural gas storage in the U.S. in the week ended March 29 fell by 94 billion cubic feet, slightly above expectations for a drop of 91 billion cubic feet.

Inventories increased by 43 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 4 billion cubic feet.

Total U.S. natural gas storage stood at 1.687 trillion cubic feet as of last week. Stocks were 779 billion cubic feet less than last year at this time and 37 billion cubic feet below the five-year average of 1.724 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 76 billion cubic feet below the five-year average, following net withdrawals of 48 billion cubic feet.

Stocks in the Producing Region were 29 billion cubic feet below the five-year average of 724 billion cubic feet after a net withdrawal of 42 billion cubic feet.

Gas prices fell initially on release of the data, though investors later concluded the numbers were close enough to market forecasts to merit bottom fishing.

Forecasts for warmer temperatures in the U.S. have pushed natural gas prices down, as the need for heating diminishes with the arrival of springtime weather patterns.

As late spring and early summer approach, however, rising temperatures hike demand for natural gas as more and more homes and businesses crank up their air-conditioning units to keep cool.

U.S. Elsewhere on the NYMEX, light sweet crude oil futures for delivery in May were down 1.35% and trading at USD93.17 a barrel, while heating oil futures for May delivery were down 1.21% at USD2.9657 per gallon.

Sell MCX Gold June around Rs 29450; target Rs 29200: Geojit

Technical Updates:
MCX Gold June : Sell around 29450 levels with a stop loss placed above 29550 levels for targets of 29200 levels.

MCX Silver May : Sell around 51000 levels with a stop loss placed above 51600 levels for targets of 50000 levels.

MCX Crude April : Sell around 5290 levels with a stop loss placed above 5330 levels for targets of 5220 levels.

MCX Natural Gas April : Sell around 217 levels with a stop loss placed above 220 levels for targets of 211 levels.

MCX Copper April : Sell around 406 levels with a stop loss placed above 409 levels for targets of 402 levels.

MCX Nickel April : Sell around 890 levels with a stop loss placed above 902 levels for targets of 870 levels.

MCX Lead April : Sell around 112 levels with a stop loss placed above 113 levels for targets of 110 levels.

MCX Zinc April : Sell below 100 levels with a stop loss placed above 101 levels for targets of 98 levels.

MCX Aluminium April : Sell around 102 levels with a stop loss placed above 103 levels for targets of 100.50 levels.

MCX Gold June has support at Rs 29200/10gms: IIFL

IIFL has come out with its report on global commodity update. According to the research firm, for gold prices, USD 1,550 seems to be a crucial support level, whereby a breach of the same can drift the prices towards USD 1,520/ounce.

Precious metals are trading on a weak note, as global investoRs seem to be flocking to surging equities. With US equities trading on a firm note, there could be relentless pressure on the precious metals in the short run. Amongst the pack, silver seems to be more vulnerable as there is substantial deterioration on the charts. Silver prices are well poised to move lower towards USD 26/ounce. For gold prices, USD 1,550 seems to be a crucial support level, whereby a breach of the same can drift the prices towards USD 1,520/ounce.

MCX Gold (June)Price indication: Prices have support at Rs 29,200/10gms and resistance at Rs 29,650/10gms.

MCX Silver (May)Price indication: Prices have support at Rs 49,850/kg and resistance at Rs 53,350/kg.

Base metals

LME base metals continue to tread lower, in light of expansion in supply, mounting stockpiles and doubts about end-user demand in China, the world’s largest metal’s consuming nation. Copper prices have breached the crucial support of USD 7,500/ton and can retest the 2012 low of USD 7,219/ton. Strengthening US dollar is also weighing on the complex. US dollar index has rebounded back above 83, deriving cues from improving macroeconomic tone in US.

MCX Copper (April)Price indication: Prices have support at Rs 400/kg and resistance at Rs 415/kg.

MCX Zinc (April)Price indication: Prices have support at Rs 99.2/kg and resistance at Rs 102/kg.(moneycontrol

MCX SILVERM prices slip 22% in June series so far

SILVERM prices on MCX were down marginally. At 13:53 hrs MCX SILVERM April contract was trading at Rs 50685 down Rs 60, or 0.12 percent. The SILVERM rate touched an intraday high of Rs 51100 and an intraday low of Rs 50555. So far 30304 contracts have been traded. SILVERM prices have moved down Rs 13394, or 20.90 percent in the April series so far.
At 13:53 hrs MCX SILVERM June contract was trading at Rs 51722 down Rs 59, or 0.11 percent. The SILVERM rate touched an intraday high of Rs 52170 and an intraday low of Rs 51601. So far 2753 contracts have been traded. SILVERM prices have moved down Rs 14563, or 21.97 percent in the June series so far.

At 13:52 hrs MCX SILVERM August contract was trading at Rs 52821 down Rs 88, or 0.17 percent. The SILVERM rate touched an intraday high of Rs 53190 and an intraday low of Rs 52747. So far 196 contracts have been traded. SILVERM prices have moved down Rs 4341, or 7.59 percent in the August series so far.

Gold hits 10-month low on selloff to cover equity losses

Gold dropped to a 10-month low on Thursday as investors cashed in the precious metal to cover steep losses in equities after disappointing U.S. economic data.
Gold, a traditional safe haven, also failed to capitalise on tensions in the Korean peninsula, where North Korea has moved what appears to be a mid-range missile to its east coast, according to South Korea's Yonhap news agency.

Gold fell as far as $1,541.14 an ounce, its lowest since May, and stood at $1,551.61 by 0557 GMT, down $5.74. It rallied to a 1-month peak in March on worries about fiscal stability in Europe, as politicians scrambled to clinch a bailout for Cyprus.

"The environment for gold is pretty bearish now. I think if gold tests the lower trend channel, it has the potential to drop to the $1,530 level," said Joyce Liu, an investment analyst at Phillip Futures in Singapore.

"As for North Korea, I think investors are seeing the threats more like a joke. They are not reacting as if North Korea is really going to launch a nuclear-loaded missile. Funds are moving out of gold because there's less need for a safe haven."

U.S. gold for June delivery fell $2.20 an ounce to $1,551.30, while other precious metals also dropped sharply.

Silver tumbled to its lowest level since July last year, platinum dropped to its lowest since late August, and thinly-traded palladium was at a two-week trough.

Tokyo gold futures declined as much as 2.1 percent before paring some losses as the weaker prices ignited buying from speculators in Japan. Premiums for gold bars in Tokyo edged up to 50 cents an ounce to spot London prices from zero earlier this week.

"The general public is buying. But I don't think the Japanese people have much interest in the developments in North Korea," said a physical dealer in Tokyo.

Stocks fell in Asia on Thursday after weak data stoked concerns that a key American jobs report due later in the week will signal slowing U.S. growth.

The 25-day inverse correlation between gold and the S&P 500 index was at negative 0.2 after strengthening to negative 0.5 on April 2 -- the strongest link since September 2011.

US companies hired at the weakest pace in five months in March as recent strong demand for construction jobs evaporated, while growth in the vast services sector slowed, signs that the economic recovery could be hitting a soft patch.

Markets will be on tenterhooks until Friday's release of the broader government payrolls report for March that would give a fairer assessment of the U.S. jobs market.

Signs of economic improvement could prompt the U.S. Federal Reserve to halt its bullion-friendly bond-buying programme earlier than expected.

Fears that central banks' money-printing to buy assets will stoke inflation have been a key driver in boosting gold, which rallied to an 11-month high in October last year after the Fed announced its third round of aggressive economic stimulus

"The gold price is, in our view, in bubble territory. Investors have pushed the gold price sharply higher over the past 10 years with the past five-year rally driven by fears that aggressive central bank quantitative easing would lead to very high inflation," Societe Generale said in a report.

"But inflation has so far stayed low and now we are beginning to see the economic conditions that would justify an end to the Fed's QE, fiscal stabilisation that has passed its inflection point and a US dollar that has begun trending higher."