Archive for the ‘mcx’ Category

Commodity market update : Copper tips,gold tips,silver tips 13june

Commodity market update: 13th June 2012

Commodity type: Gold
Transaction: Buy
Target: T1-30000 T2-30060
Stop/Loss: 29840

Commodity type: Silver
Transaction: Buy
Target: T1-55400 T2-55600
Stop/Loss: 54800

Commodity type: Copper
Transaction: Buy
Target: T1-414.50 T2-416
Stop/Loss: 409.50


copper tips | forex tips


Lat chance to save euro crisis

Since the eurozone crisis started more than two years ago, skeptics have been quick to dismiss the simmering problem as much ado about nothing.

Shoot, they’re just a bunch of socialists getting their comeuppance, right? And the Greek economy is insignificantly small, at around $300 billion. That’s worth just 2% of the U.S. gross domestic product.

While the financial markets have been jumpy over the issue since it started, the slow, drip-drip deterioration of the situation across the Atlantic has started to bite in very real ways. The unemployment rate is rising again here at home, factory activity has stalled around the world, and much of Europe has fallen into a new recession.

According to Bank of America Merrill Lynch economist Ethan Harris, there are “growing signs of a synchronized global slowdown.” From China to India, Hong Kong and Australia, GDP forecasts are being slashed as global trade slows. Harris sees “a significant risk of a global recession” later this year or in early 2013.

As a result, something that once seemed innocuous and maybe a little funny has assumed a deadly seriousness. There’s a key date to mark on your calendar: June 17. That’s the date of the next parliamentary election in Greece. And without substantial action between now and then, the situation gets much worse for everyone.

Europe divided

In the context of all of this, the political fabric that binds the eurozone together is fraying badly, as countries and institutions group themselves into two corners.

Troubled nations including Spain and Greece — supported by Italy, France and the European Commission — want more leniency and help as they try to rebalance their economies, address structural inefficiencies, pay down debt, close budget deficits, recapitalize banks and return to growth — all at the same time.

This pro-growth bloc is pushing hard for things like a eurozone bank deposit insurance program (ending bank runs via a eurozone version of the FDIC, the deposit insurance program in the U.S.) using eurozone bailout funds to recapitalize weak banks (instead of making Spain’s government help its banks, which would take pressure off of its budget deficit); and the issuance of “eurobond” debt backed by the entire eurozone (to push down borrowing costs for troubled nations). They also want the European Central Bank to step up its stimulus efforts.

The pro-austerity bloc, including Germany and the Netherlands, wants progress on things like economic reforms, constitutional commitments to balanced budgets and state asset sales before any of this happens. The worry is that cheap money, in the form of ECB loans to the financial system, could unleash dangerously high inflation.

Salvos are being exchanged, and positions are hardening. The ECB is caught somewhere in the middle, with its executive board dominated by pro-growth nationals while the German Bundesbank still wields enormous influence.

You can see who is ahead in this debate in the results of the recent French presidential election, which replaced pro-austerity Nicolas Sarkozy with pro-growth François Hollande. This has changed the balance of power and has emboldened the pro-growth faction.

What we have now is an epic game of chicken spiced with daily doses of rumor and conjecture about who will win.

Commodity tips | forex tips | stock tips

Gold attract to younger investors

Gold’s spectacular decade-long run — abetted recently by Europe’s sovereign-debt crisis, the U.S. budget deficit and fears of a double-dip recession — has tapped a new vein of investors in their 20s and 30s.

Gold’s popularity among young investors speaks to the metal’s role as a store of wealth, and it says a great deal about a generation that has seen asset bubbles burst and governments fail to clear a path to prosperity.

Many young gold buyers have little faith in equities, and, unlike older investors, they are more inclined to consider alternative investments. Some seek tangible assets as a counterweight to stocks, bonds and cash in the aftermath of the 2008 U.S. financial crisis.

Divnain Malik, the head of retail sales at Gold Bullion International in New York, a seller of physical gold, said that while half of his clients are baby boomers, the “younger demographic seems to be catching on” to gold.

Indeed, the 25- to 35-year-old cohort is the company’s fastest-growing segment, Malik said. About half of the new accounts at his company were opened by people in their 20s and 30s. Younger clients are increasingly sophisticated, Malik said, do not want to repeat others’ mistakes and are protective of their investments.

Don’t lose faith in gold

Said Malik: For them, “it’s not about the risk in gold, it’s the risk anywhere else.”

Gold’s track record is clearly a big draw. Gold has enjoyed a string of nominal record highs for the better part of two years. Recently, though, the deepening of the eurozone crisis has skewed gold’s generally inverse relationship with stocks, with gold losing some of its allure as a safe haven even as Europe’s situation worsened. Some large investors, pressured by steep tumbles in global equity markets, have sought refuge in cash.

But gold is still comfortably ahead this year. SPDR Gold Shares (GLD +0.88%, news), an exchange-traded fund that is a proxy for the metal, was up 23.6% for the year through Nov. 16, according to investment researcher Morningstar.

Unlike Europeans and Asians, Americans don’t have a long tradition of owning gold. Yet contrary to stereotype, most U.S. gold investors are not guns-and-bunker renegades hoarding physical gold to fend off the collapse of civilization. Demographic studies on precious-metals investing done in the 1970s and 1980s actually showed a large percentage of college-educated buyers, with only a small portion owning gold for “doomsday scenarios,” said Jeffrey Christian, the managing director and founder of CPM Group in New York.

Studies in the 1990s offered similar findings and detected rising participation of women investors, Christian added. This finding is consistent with broader trends of women taking the lead in family investing decisions.

These days, young buyers’ interest in gold is hampered by the metal’s high price, Christian said. Student loans, the financial pressures on young families and other obligations leave little money for investing or speculation, Christian noted.

Search for more on John Paulson’s exit on Bing

What John Paulson’s exit means for gold

Despite such obstacles, the recent financial crisis was severe enough to make younger investors re-evaluate their investing strategies, he said.

Kurt Brouwer, the chairman of Brouwer & Janachowski in Tiburon, Calif., has noticed greater interest in gold across all age brackets. “Any time you have something doing well, people get interested in it,” he said.

Brouwer walks new clients through the three main avenues of precious-metals investing. For speculators, a good alternative is to buy one of the several exchange-traded funds backed by gold. Funds are more liquid than bullion, Brouwer said.

Shares of gold-mining companies are another alternative, Brouwer said, since stocks “have not soared nearly so much as gold” futures.

Multi-Commodity Exchange and types of commodities

Commodity market is where raw and primary products are sold and bought. These commodities product are regularly traded where they are sold and bought within a contract. Trading in commodities began in Japan in the 18th century with the trading of rice and silk. Organized commodity derivatives started in India early as 1875. Trading in the US began in the 1957 century.

There are two types of exchanges in commodity market-

1. MCX (Multi Commodity Exchange)

2. NCDEX (National Commodity and Derivatives Exchange)

MCX stands for multi commodity exchange. This is India based commodity exchange market. MCX headquarter establishes in 2003 in Mumbai. Multi commodity Exchange is India’s number one commodity exchange and its offers more than 40 commodities for trading. MCX covers the three types of assets-

1. Energy:- WTI crude oil, Brent Crude, Ethanol, Natural Gas, Heating Oil, Gulf Coast Gasoline, Uranium etc.

2. Base metal:- Copper, Lead, Zinc, Tin, Aluminum, Nickel, Aluminum alloy, Steel etc.

3. Precious metal:- Gold , Platinum, Palladium, Silver etc.

The MCX achieved first rank in Silver, the second rank in Gold, Natural Gas and Copper and achieved third rank in crude oil futures in all over the world. Commodity exchange decides the lots size and base value of different commodities. The MCX trading timing in a week Monday to Friday is 10:00 AM to 11:30 PM and on Saturday its timing is 10:00 AM to 02:00 PM.

Commodity trading is totally future contract based trading and the future market prices are affected by many factors. There are many economic and political factors that are affecting to mcx commodities price. Political factors as like restriction on new businesses, lack of well developed legal system, corruptions affects to market price. During the gulf war in Iraq the oil price changed. Agricultural assets are affected by weather and crops. The demand and supply is directly affected to commodity market price.