MEX futures bazaar

Crude oil rallied on Monday to reach a 2-month high of Rs.6,132.75 per barrel.Positive economic data on manufacturing from the US and Europe indicated that the global economy is continuing to recover which has seen crude prices gain strength.This increase in crude prices continued on Tuesday.While the black gold traded sideways during the early hours of trading,it soon showed strength following the weakness in dollar and the release of the weekly American Petroleum Institute(API) report.The weekly report stated that crude oil inventories dropped for the week ending 30July.As a result,crude oil reached a 3-month high of Rs6,196.50 per barrel.Crude oil saw some mixed trading on Wednesday.Crude initially continued its rise from the previous day attributing mainly to the inventory report by American Petroleum Institute(API).

This rise was further supported by the weekly inventory report released by the Energy Information Administration(EIA) which showed that there were declines in crude oil inventory the previous week.However,the increase could not be sustained for long as the American dollar bounced back from its lower levels reducing the appeal of commodities.This saw crude oil reach a low of Rs.6,133.5 per barrel.This decline continued heading onto Thursday as well.While the increase in dollar was responsible for the decline the previous day,weak economic data from the US added strength to this decline on Thursday.

The unexpected rise in the US jobless claims raised raised concern that the economic recovery is slowing which in turn will limit oil demands.As a result crude reached a 3day low of Rs.6,147 per barrel.Friday saw some sideways trading during the early hours of trading but with the release of the jobs data from the US,crude oil declined to reach a low of Rs.6,003 per barrel.The labor department concluded on Friday that non-farm payrolls fell 1,31, 000 last month,the second straight monthly decline.

GOLD
Gold declined during the early hours of trading on Monday.However,with news that manufacturing activity in China is slowing,gold staged a short rally to reach a 5day high of Rs.28,758.53 per 10 gram.This short rally continued heading onto Tuesday.While the primary reason seemed to be a weaker dollar,this strength was given further boost by China's announcement.China, announced on Tuesday that it'll increase the number of commercial banks permitted to import and export gold.Currently,only 5 commercial banks are allowed to trade in gold.This announcement saw gold reach a 6 day high of Rs.28,765.76 per 10 gram.Wednesday saw this rally continue to create a new high.While the gold market has seen positive sentiment since last Tuesday,this week has seen gold create new highs and Wednesday was no exception.

The precious metal created a 2 week high of Rs.29,064.6 per 10 gram.Announcement from the China previous day seemed to have boosted gold prices.However, the upside gains were limited following the release of better than expected economic data from the US.Likewise,profit taking by investors also contributed to the decline and saw the precious metal close at Rs.28,828.42 per 10 gram.Thursday saw gold lack direction hinting that investors were awaiting the release of the monthly unemployment rate to be released on Friday.While gold lacked upside momentum ,physical demand has kept prices from creating new lows.This lack of direction continued through Friday early hours.However,with the release of the jobs data which painted a bleak picture of the American economy,gold created a 3-week high of Rs.29,242.94 per 10 gram.