CURRENCY & COMMODITIES VIEW

Market News
Gold up to straight eight sessions on Demand prospects
Gold not only recovered back from day’s lowest $1351 but also managed to close in green for straight eighth session amid market is seeing good demand prospects on the back of upcoming festive season. Although, weakness in INR will have negative impact on the prices INR closed at all lows below 63 and weaker rupee is making GOLD more expensive for Indians. Speculators’ bets on price declines gained eightfold since November as the metal heads for its first annual drop in 13 years after some investors lost faith in gold as a store of value. Bullion rebounded 16 percent from a 34-month low on June 28 as lower prices spurred more purchases of jewelry, bars and coins from China to Turkey.
The one-month gold forward offered rate, which shows the interest rate at which dealers will lend metal for dollars, has been negative since July 8, pushing one-month lease rates to 0.3067 percent on Aug. 8, the highest since December 2008. The cost of borrowing was at 0.2929 percent today, August futures on the Comex in New York rose above the December contract for the first time on Aug. 2.
Market is also keeping close eye on FED meeting minutes as any indication of early tapering of Bond purchase will certainly have negative impact on the commodities prices. The purchases are widely seen as supportive of gold prices, in part by pushing the U.S. currency lower, making dollar-denominated gold cheaper for holders of other currencies Gold for December delivery tacked on $6.90, or 0.5%, to settle at $1,372.60 an ounce, recouping the $5.30 loss seen Monday on the Comex division of the New York Mercantile Exchange.
Crude oil tumbled on Libya Oil Exports
Crude seen steep and straight fall below $105 as Libya opening the ports of Zueitina and Hariga to resume exports, Ibrahim Al Awami, an oil ministry official,. Another port, Brega, was operational as of today. Among other terminals, the country’s largest, Es Sider, remains closed. Earlier, the navy said it will forcibly escort back to port any vessel carrying the nation’s crude without authorization, according to a statement carried by the Libyan News Agency. Moreover, FED minutes will also play its role, if FED indicates early tapering of Bond purchase will certainly have negative impact on the commodities prices.
Brent crude has risen 3.5 percent this month amid the turmoil in Libya, the holder of Africa’s biggest reserves, and disruptions in Iraq and Nigeria. Libya’s production has fallen to less than half the level pumped before the 2011 uprising against Muammar Qaddafi as protests by the Petroleum Facilities Guard, or PFG, for better working conditions has hurt exports.
Crude Drops for Second Day on Fed Tapering Speculation
West Texas Intermediate crude fell for a second day amid speculation that the Federal Reservewill reduce stimulus measures next month, curbing investors’ appetite for commodities.
Futures slid as much as 1.8 percent. Minutes from the Fed’s July meeting, scheduled to be published tomorrow, will probably provide details about deliberations on when to taper $85 billion in monthly bond buying. Prices trimmed gains as equities rose and a Bloomberg survey showed that U.S. crude inventories probably dropped to an 11-month low last week.
The market doesn’t seem to have any forward momentum and the fear that the Fed could pull back is limiting the upside, inventory reports coming in tomorrow. People are looking for a catalyst to drive this market higher or lower. WTI for September delivery dropped 77 cents, or 0.7 percent, to $106.33 a barrel at 1:12 p.m. on the New York Mercantile Exchange. It slipped 0.3 percent yesterday, snapping a six-day rally that was the longest since April 25.

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Today NF may recover a bit as yesterday we saw a U turn in Nifty. Intraday resistance level  marked at 5470.

possible a gap up may seen today.If  Nifty Future still make up move  & may create  new high if cross 5470 then  5499/5525/5549 and still more is possible.