Hide News  Gold Sees Subdued Trades, MCX Silver Crashes Under 36K
Jul 06, 2015  18:56

Heavy losses emerged in MCX Silver today as a break under Rs 36K extended. COMEX Gold is consolidating around its lowest mark in three months amid weak inflation expectations and a continued rise in the US dollar. The dollar gained near 1.1000 mark against the Euro after Greek voters rejected the bailout referendum. While this pushed up gold initially, the yellow metal failed to capitalize on the rally and retreated. Stocks slipped in Asia and the European equities also started on a very dismal note today. COMEX Gold eased from highs near $1168 per ounce and currently trades at $1164 per ounce, almost unchanged on the day. MCX Gold futures for August are trading at Rs 26227 per 10 grams, down 0.47% on the day. MCX Silver futures for September are trading at Rs 35862 per kg, down 0.82% on the day.

International food prices decreased by 14% between August 2014 and May 2015, dropping to a five-year low, according to the latest edition of Food Price Watch from World Bank. Cheap oil contributed to abundant global supplies of food in 2014 and prospects of a bumper crop for wheat, maize and rice in 2015—factors that are driving the sharp decline in international food prices. The agriculture and food sector continue to benefit from less expensive chemical fertilizer, fuel and transportation costs brought on by the previous year's oil price declines, with food prices holding steady despite recent oil price hikes.

Between August 2014 and May 2015, wheat prices plunged by 18%, rice prices dropped by 14% and maize prices declined by 6%. However, the arrival of El Nino, the appreciation of the U.S. dollar and the recent increase in oil prices could drive up food prices in the coming months. The demand for maize by the biofuel industry and developments in rice support policies among major producers are other factors that could impact food prices.

World stocks eased today as Greeks overwhelmingly voted against their international creditors’ conditions for further bailout aid, according to results of the referendum held on Sunday. This has pushed Greece closer to bankruptcy and an exit from the euro. More than 61% of Greeks voted “no” in Sunday’s referendum on austerity measures that European and International Monetary Fund officials had demanded in recent talks. European equities are in red with losses amounting to the tune of around 1% though no massive hammering has been noted.

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