Gold price at $3,000 an ounce! Anything is possible when abundant liquidity is in charge of markets. As the yellow metal heads towards the psychologically important $2,000 mark, it was already up 27 per cent for calendar 2020. Traditionally, gold returns look promising during periods when equity is down. Both are rising in tandem currently, with the bullion taking support from the drop in real rates and recent weakness in the dollar. Some forecasters like JPMorgan say gold may be just one last hurrah away before it loses steam, but others like Goldman, Citigroup and Bank of America expect it to soar much higher. Either way, 2020 could very well mark gold's biggest annual gain in a decade.
MARKET CUES: Where do we stand >>>  | Nifty futures on the Singapore Exchange traded 13 points higher at 7 am (IST) this morning, showing signs of fatigue on Dalal Street. |
| On Tuesday, Nifty50 kissed the 11,300 mark and formed a long bullish candle on the daily chart. A decisive move above the 11,240 level that had posed resistance over the last four sessions was a respite, said analysts, who now expect the index to face resistance in the 11,350-385 zone. |
| Asian stocks struggled for a clear direction on Wednesday, as investors awaited the conclusion of the US Fed policy meeting. Shares slipped in Japan, where Fitch Ratings lowered its outlook on the country's debt. Stocks in Hong Kong and China opened lower, while those in South Korea ticked up. |
| Wall Street closed lower on Tuesday as investors fretted about weakening consumer confidence, disappointing financial results and as investors worried about wrangling in the US Congress over a coronavirus aid plan. Dow fell 205.49 points, or 0.77%, the S&P500 lost 20.97 points, or 0.65%, and the Nasdaq 134.18 points, or 1.27%. |
| The rupee settled for the day nearly flat, down just 1 paisa, at 74.84 against the dollar on Tuesday. |
| The dollar index bounced off a two-year low on Tuesday but looked primed for further weakness. The euro dipped 0.26% against the greenback after reaching the highest since September 2018. Sterling gained half a per cent. |
| Oil prices rose on Wednesday after an industry report showed that crude inventories in the US increased against expectations, giving the market a boost. Brent crude rose by 24 cents, or 0.6%, to $43.46 a barrel, while WTI gained 14 cents, or 0.3%, to $41.18 |
| Gold price dipped Rs 69 to Rs 52,465 per 10 gm while prices of silver fell by over Rs 2,500 to Rs 62,730 a kg. On MCX, August gold futures climbed over 1% to Rs 52,649 while silver September futures slipped 0.41% to Rs 65,260. In global markets, gold surged to a record high of $1,980.57 per ounce and then retreated as much as 3.7% later in the session as investors booked profits and the dollar bounced back. |
| LOOK WHO'S |  |
July exports show rapid recovery… India's exports in July have recovered to 87.5% of that for the same period last year, data available till July 26 showed. Railway freight loading as on July 27 has exceeded that for the corresponding period of last year. "These are signs of economic revival," said a government official. India exported $26.33 billion worth of goods in July 2019. Exports in the current month are expected to recover to almost that level. Imports are 72% of the corresponding period of July 2019. The trade deficit is falling," the official said.
Read More PM to nudge bankers to lend... Worried over the flow of credit to the corporate sector and small businesses, Prime Minister Narendra Modi will brainstorm with the country's top bankers on Wednesday. "The topics on agenda include credit products and efficient models for delivery, financial empowerment through technology, prudential practices for stability and sustainability of the financial sector," the Prime Minister's Office said in a statement. Those invited for the interaction include SBI chairman Rajnish Kumar, HDFC Bank MD Aditya Puri, ICICI Bank MD Sandeep Bakhshi, PNB MD and CEO S S Mallikarjuna Rao and HDFC MD Renu Sud Karnad, sources said.
Read More Mittal says worst over for telecom... Bharti Airtel chairman Sunil Mittal said the worst may be over for the telecom industry, but it's still not "out of the woods" and needs "urgent interventions" from the government. "The government must also look at rationalising levies on the sector and close long-standing legal disputes that are a big drag on performance of operators," said Mittal in a message to Airtel shareholders in its annual report for FY20 released on Tuesday.
Read More Govt may cut 5G spectrum base price... The government may consider lowering the base price of 5G spectrum to compensate telcos if they have to shell out more for buying non-Chinese equipment. Officials said the government was aware that keeping Chinese vendors Huawei and ZTE away from India's 5G market may push up network deployment costs and is thus open to reassessing the base prices suggested by the regulator to make it viable for operators.
Read More | AND WHO'S |  |
No credit over sold shares for investors…. The practice of allowing investors to use credit, backed by scheduled payments from the sale of securities, to immediately buy other shares is set to come to an end on August 31. Stock exchanges clarified late last week that investors wanting to buy other shares with the sales proceeds will have to wait for two days after the money comes into the account. This move, along with recent decision asking brokers to collect margins upfront before trading could raise investors' cost of capital and hit trading activity, experts said.
Read More IBC circular led to Patel's exit... Former finance secretary Subhash Garg said the February 2018 circular issued by RBI seeking to tighten the Insolvency and Bankruptcy Code was the cause for differences between the two sides. Former RBI governor Urjit Patel's recent book has suggested that the central bank's bid to plug the loopholes in the IBC and tighten the screws on corporate borrowers led to his premature departure in 2018. The government wanted the circular reviewed, Garg said in an interview to ET, adding that it had been issued without any consultation. The then finance minister had tried to discuss the matter with the central bank.
Read More Acharya says RBI diluting stability measures... RBI has been diluting some of the toughest measures prescribed for financial stability and its surplus liquidity policy has weakened inflation-targeting and shifted the goal post, former deputy governor Viral Acharya has said. "We are certainly showing signs of willingness to accommodate and compromise. Look at the number of forbearances we have rolled out. The real question is, now that IBC is not producing resolutions in a timely manner, will the central bank do an asset quality review? That is the real test," Acharya told ET in an interview.
Read More Meanwhile... No GST compensation to states... The Centre is said to have told a parliamentary panel it may not be able to pay goods and services tax (GST) compensation due to states in the near future as tax collections have fallen due to the economic slump on account of the Covid-19 pandemic and the subsequent lockdown. Finance secretary Ajay Bhushan Pandey and DPIIT secretary Guruprasad Mohapatra, who appeared before the panel, said the government was not in a position to clear all GST compensation dues in the near future as the economy is not robust enough to bear the cost.
Read More 
Neutral
No comments:
Post a Comment