Gold prices steadied as prospects for further U.S. interest Rate increases put the brakes on a recent rally.Gold prices steadied as prospects for further U.S. interest rate increases put the brakes on a recent rally. Gold prices moved off session lows shrugging off the prospect of further Federal Reserve rate hikes amid upbeat labor market data pointing to underlying strength in the US economy. The recent rally in gold futures came under pressure amid investor concerns that continued upbeat US economic data could strengthen the case for the Fed to raise rates more than currently priced in.
US unemployment claims rose to 250 thousand in the week ending December 30 from 245K in the previous reading, missing expectations of a dip to 241K. The Federal Reserve released the minutes of the December 12-13 meeting, at which policymakers voted to increase overnight interest rates by 25 basis points to between 1.25% and 1.50%, while releasing their three-year forecasts for interest rates, inflation, growth, and unemployment.
On another note, Iran is engulfed in heavy protests since Thursday, which led to violent confrontation between protesters and security and forces and the death of 12, which nonetheless didn’t impact the production or exporting levels in OPEC’s third largest producer. While pumping has started anew through the North Sea pipelines in Britain, responsible for shifting 0.5 mbpd, after the system was frozen last month, while also pumping resumed in a Libyan pipeline that was bombed in a militia attack.
At the Indore spot market in top producer MP, soybean gained 42 Rupees to 3198 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 16.95% to settled at 213900 while prices up 33 rupees, now Soyabean is getting support at 3159 and below same could see a test of 3132 level, And resistance is now likely to be seen at 3208, a move above could see prices testing 3230.
The stocks of edible oil in the country are higher by 24% compared to last year stocks at 22.67 lakh tonnes. Demand is expected to improve in the coming weeks as key buyer China stocks up ahead of Lunar New Year celebrations. Malaysian palm oil shipments, which gained 6-9 % on the month in December according to cargo surveyor data, are expected to rise further in January on improved demand from China.
Rajasthan is the largest mustard/rapeseed producing state and last year area under the seed stood at 2.77 million hectares and for this year the state government set a target of 2.8 million hectare. Normally, southwest monsoon starts withdrawing from Rajasthan by early September but this year it was delay though rain remained weak in the state. However, in Uttar Pradesh, the sowing stood at1.21 million hectare a year ago.
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