Buying of gold for investment is near negligible amid lockdown, but MCX gold futures continue to find support amid falling equity markets and a weaker rupee, says Sumeet Bagadia of Choice Broking.
Saudi Arabia on Thursday called for an emergency meeting of OPEC and non-OPEC producers, saying it aimed to reach a fair agreement to stabilise oil markets that have crashed on the demand impact from the coronavirus pandemic.
In the futures market, crude oil for April delivery touched an intraday high of Rs 1,989 and an intraday low of Rs 1,660 per barrel on MCX.
During FY20, JSPL registered a growth of 12 percent in output, while the sales have registered a rise of 10 percent.
Experts are of the view that a major moving average suggests that there could be more upside, but the precious metal could face some resistance around Rs 44,000 per 10 gm.
While the surge in physical gold sales and ETF inflows show robust buying interest and has kept price supported, general strength in the US dollar has kept a check on the upside.
Trump said cuts could amount to as much as 15 million bpd but didn't say whether the United States, the world's largest oil producer, would contribute to reductions, a move which is forbidden by US antitrust legislation.
"The kingdom calls for an urgent meeting of OPEC+ and a group of other countries with the aim to try and reach a fair deal to restore balance to the oil market," said a statement carried by the Saudi Press Agency.
Physical crude cargoes trade at premiums or discounts to dated Brent. With the coronavirus-driven lockdowns around the world killing refining demand, these differentials to the benchmark have crashed to unprecedented levels.
Trump said he had talked recently with the leaders of both Russia and Saudi Arabia and believed the two countries would make a deal to end their price war within a "few days" - lowering production and bringing prices back up.
Markets globally are now flooded with cheap oil with storage spaces filling up fast, while refiners cut output or shut plants following coronavirus lockdowns.
Oil prices crumbled as the pandemic slashed global fuel consumption, with further pressure from a supply shock due to the end of production cuts from OPEC producers and Russia.
The pandemic is putting increasing strains on emerging market economies, but the International Monetary Fund has sufficient resources to meet their needs for now, IMF officials said on Wednesday.
Trump also said he had talked recently with the leaders of both Russia and Saudi Arabia and believed the two countries would make a deal to end their price war within a "few days" - lowering production and bringing prices back up.
Brent crude futures rose 4%, or $1, to $25.74 as of 0118 GMT, after touching a high of $25.89.
Navneet Damani, Vice President, Motilal Oswal, said, domestic gold prices could hover in the range of Rs 42,500-43,150 per 10 gm.
In the futures market, crude oil for April delivery touched an intraday high and low of Rs 1,658 and Rs 1,550 per barrel on the MCX, respectively
It is time for US to participate in balancing the oil market as Russia-Saudi Arabia's price war hurts crude.
Trump ordered the Department of Energy, or DOE, on March 13 to take advantage of low oil prices and fill the reserve "to the top", in an effort to help domestic drillers suffering from the global oil price drop. But carrying out the order has been tricky.
Brent crude was down by 21 cents, or 0.8%, at $26.14 a barrel by 0032 GMT, while U.S. West Texas Intermediate crude was up by 27 cents, or 1.3%, at $20.75 a barrel.
Spot gold was up 0.4% at $1,577.83 per ounce, as of 0030 GMT, having slumped 3.1% in the previous session. U.S. gold futures slipped 0.3% to $1,591.30.
The oil market is caught between a collapse in demand due to the coronavirus pandemic and a price war between Saudi Arabia and Russia. Both factors are expected to flood markets with oil.
In the futures market, gold rate touched an intraday high and low of Rs 43,840 and Rs 43,130 on the MCX
In this episode of Big Story, Moneycontrol's Sakshi Batra decodes the oil market meltdown and its global impact
Soybean sowing in United States could be delayed amid lockdown situation, however, the demand for Soymeal has substantially declined globally due to COVID-19 which is expected to cap major upside movement in the coming weeks.