Home / Economy / Commodity

Commodity

GOLD INVESTORS GET A WAKE UP CALL AS US RATE-HIKE ODDS SURGE

Gold investors are waking up to the reality of an increasing probability that borrowing costs in the US could rise this month.

Bullion futures fell for a second day as the odds that the Federal Reserve will boost interest rates this month jumped to 80 percent on Wednesday, from 52 percent a day earlier and 34 percent last week.

Higher rates curb the investment appeal of non-interest bearing gold, while boosting the dollar. Gold, which rallied more than 8 percent this year, has been thrown into reverse amid a rapid rethink by investors as Fed officials signaled more willingness to consider a rate hike this month. The Fed’s preferred measure of consumer prices climbed 1.9 percent from a year earlier, just shy of its 2 percent target that was last met in April 2012.

GOLD RATES IN PAKISTAN (Rs)
City
24K 10 Grams
24K Per Tola
22K 10 Grams
Karachi
43,714.00
51,000.00
40,071.00
Hyderabad
43,714.00
51,000.00
40,071.00
Lahore
43,714.00
51,000.00
40,071.00
Multan
43,714.00
51,000.00
40,071.00
Islamabad
43,714.00
51,000.00
40,071.00
Faisalabad
43,714.00
51,000.00
40,071.00
Rawalpindi
43,714.00
51,000.00
40,071.00
Quetta
43,714.00
51,000.00
40,071.00
Last Updated: Thursday 02,Mar,2017 (Source: Karachi Saraf Jewellers Association)
MILK PRODUCTION NEARLY 4PC LOWER

Milk supplies across the EU were back 3.4 percent for the last quarter of 2016 compared to 2015. These production statistics are good news for Irish farmers, as European milk volumes this spring will dictate how prices develop across the year.

With New Zealand entering the last quarter of its production cycle, milk output in Europe will dictate price trends for the coming six months. It is confirmed that milk deliveries across the EU-28 were back 1.24 billion liters in the period from October to December, exceeding the volumes applied for under the EU Milk Reduction Scheme by almost 200 million liters.

 

CHINA TO SLASH HALF A MILLION JOBS IN STEEL, COAL

China’s labor minister says Beijing will cut another 500,000 jobs this year from steel, coal and other heavy industries to reduce excess production capacity that’s flooding markets and depressing global prices.

The government will provide support for the laid-off workers to transfer to other jobs, start their own companies or retire. China is in the midst of a multi-year effort to shrink bloated industries including steel, coal, aluminum, cement and glass in which production exceeds demand.

Some companies are trying to export their surplus output, prompting complaints by the United States, Europe and other trading partners that they’re threatening thousands of jobs. At a news conference, Chinese labor minister, Yin, said the government provided similar aid last year to 726,000 workers whose jobs in coal and steel were eliminated.

HEAVY VOLUME IN EDIBLE OILS

Higher volume was witnessed in edible oils on Wednesday as stockiest gave fresh orders tracking sharp jump in overnight sharp jump in Chicago soya oil futures and firm Malaysian palm oil. On BCE price wise imported palmolein, soya oil and groundnut oil rule steady but sunflower, rapeseed and cotton oil gained by Rs5 each.

During the day Allana, Golden agri and Emami together has sold about 3800-3900 tons of palmolein at Rs575-578 and about 550-600 tons of soyabean refined oil at Rs653-655 to the local traders for delivery up to March. Liberty’s rates for Palmolein Ex STC / Shapur were Rs593-592 for March. Super palmolein at Rs613 and soyabean refined oil ex Shapur Rs670 for March. Ruchi’s rate for soyabean refined oil Rs672.50 for March and sunflower oil Rs680 for March.

DECEMBER NATURAL GAS CONSUMPTION 2ND HIGHEST IN 15 YEARS: EIA

In its Natural Gas Monthly released, the EIA outlined U.S. natural gas production and consumption for December 2016. Natural gas production in December decreased slightly compared to November 2016, and represented a 3.7 percent decrease from production levels for December 2015. Consumption was the second highest in December in the last 15 years, up 10.6 percent from levels in December 2015. In December 2016, for the tenth consecutive month, dry natural gas production decreased year-to-year from the same month in 2015.

The preliminary level for dry natural gas production in December 2016 was 2,210 billion cubic feet (Bcf), or 71.3 Bcf/day. This level was a 2.7 Bcf/day (3.7%) decrease from the December 2015 level of 74.0 Bcf/day, and the lowest for December since 2013. Estimated natural gas consumption in December 2016 was 2,865 Bcf, or 92.4 Bcf/day.

Check Also

Gulf

Gold prices sink to 19-month low amid strong dollar Gold prices shed over one per …

Leave a Reply