Gold prices edged lower on Wednesday as the U.S. dollar strengthened after minutes from the Federal Reserve’s September meeting cemented expectations for more interest rate hikes by the U.S. central bank.
The Crude Oil prices have been falling since the beginning of this month. The Crude Oil futures contract on the New York Mercantile Exchange (NYMEX) surged to a high of $77 per barrel on October 3 and has reversed sharply lower from there.
After a lull, the commodity derivatives segment is headed for interesting times with another formidable contender — the NSE — entering the fray with the launch of gold and silver futures.
For a measure of how much last week’s surge in gold prices may have caught many in the market by surprise, consider that hedge funds had just made their biggest-ever bearish wager on the metal days before.
National Stock Exchange of India (NSE) on Friday launched trading in commodity derivative. To start with, the bourse will focus on non-agri commodities, and gradually broaden product offerings to agri commodities.
Oil prices rose on Friday slightly reversing two days of declines in the previous sessions driven by sharp falls in equity markets and indications that supply concerns have been overblown, but were still on track for a weekly fall.
Gold edged down on Friday but held near an over two-month high hit in the previous session, when prices surged over 2 percent as a rout in global stock markets boosted the metal’s safe-haven appeal.
Comex gold futures rose on Thursday as a sell-off in global stock markets prompted investors to seek safety in the metal, with a softer dollar further supporting the bullion.
On Thursday, prices posted the biggest gain since June 2016, when the U.K. voted to exit the European Union, after a slump in global equity markets stoked demand for the metal as a store of value.
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