Gold prices rose as U.S. data showing solid home sales but a fall in mortgage applications pushed the dollar to a two-week low
Gains were limited by a rise in U.S. bond yields to nine-month highs after the Senate passed the country’s biggest tax reforms in 30 years. A weaker dollar makes gold cheaper for holders of other currencies, which can stimulate demand, but higher bond yields reduce the appeal of non-yielding bullion.
The Senate passed the tax reform bill, and if the House of Representatives passes it as well today – as expected, it will go for President Donald Trump to sign into law. President Trump tweeted that he will hold a press conference on Wednesday in case the plan was finally approved in the House. Large metals speculators trimmed their net positions in the Silver futures markets again last week bringing down speculative sentiment in this shiny metal, according to the latest COT data released by the CFTC.
Also yesterday, the Senate passed the tax reform bill, and if the House of Representatives passes it as well today – as expected, it will go for President Donald Trump to sign into law. While yesterday the Energy Information Administration released its report on US crude stocks, showing a drop of 6.5 million barrels in the week ending December 15, adding to the 5.1M drop in the previous reading, while analysts expected a 3.6M decline, with total stocks now dipping to 436.5 million barrels.
From the export front there is no such positive activity has been witnessed. However in recent years, the growth in production and consumption of synthetic mentha has influenced the demand for natural mentha. As per sources, India contributes around 80% to the total global mentha oil production. Total global production stood at around 48,000 tonnes, out of which India produces between 30,000-40,000 tonnes.
The arrivals have been lower in first half of December compared to previous 15 days. As per data, 3.72 lakh tonnes of soybean arrived in physical market in December against close to 5 lt last year for the same time period. SOPA increased its meal exports estimates for 2017/18 due to increased export incentives by 2% to 7% by government for all meals. Soymeal exports from the country in 2017-18 (Oct-Sep) are seen rising to around 20 lakh tn from previous estimate of 15 lakh tn due to a recent rise in export incentives.