Gold prices held steady in holiday-thinned trade on Thursday, after the minutes of the Federal Reserve’s most recent policy meeting pushed the dollar, lending support.
Gold prices have been in a consolidation and ranging mode for the past couple of months with little chances of a break through and the same seems to be continuing as of this week as well.
The fact that the gold prices have been unable to break through the $1300 region despite the weakness of the dollar shows that the demand for the metal is probably very low and this is likely to continue to be the situation in the near future as well. Yesterday trade volumes were expected to remain light with Comex floor trading scheduled to remain closed for Thanksgiving. An abbreviated session was slated for Friday.
An abbreviated session was slated for Friday. Dollar weakened after the minutes of the Fed’s latest meeting showed that some policymakers remain concerned over persistently low inflation. The report also showed that the Fed expects to raise interest rates in the “near term”, adding to expectations for a December rate hike. However, the central bank added that economic data will determine the timing of future rate hikes, which could mean a slower pace than expected for 2018.
Prices received additional support from growing signals that the Organization of Petroleum Exporting Countries (OPEC) and its allies will agree to prolong supply curbs beyond March when producers meet in Vienna next week. A draft agenda for OPEC’s meeting on Nov. 30 in Vienna pencils in three hours for the group’s oil ministers to decide whether to extend their oil supply curbs, indicating that decision-making is expected to run smoothly.
With the onset of winter the seasonal and export demand of mentha is improving which is also one of the reasons for rise in prices. Stock positions of mentha in MCX accredited warehouses were around 8537 drums which is 192 drums less in comparison to the previous day, while in process were 408 drums which is same against the previous day.
In Telangana soybean prices are ruling between Rs 1,800 and Rs 2,800 per quintal while in Rajasthan at between Rs 2,010 and Rs 2,826 per quintal. Meanwhile, the United States Department of Agriculture (USDA) showed soybean export inspections at 2.131 million for the week of November 16 was 2.46% lower than the previous week and 20.3% below this week last year.