Gold futures closed higher in the domestic market on Tuesday getting a boost from political uncertainty in the U.S., as investors awaited Federal Reserve Janet Yellen’s testimony to Congress this week for cues on the timing of expected interest-rate hikes. Prices for the yellow metal gave up earlier losses as the dollar weakened and U.S. equities fell in the immediate wake of Donald Trump Jr.’s release of emails linked to a meeting with a Russian lawyer last year.
Rising real interest rates lower the opportunity costs of holding gold because the metal provides no yield, and entices investors torotate into riskier assets like stocks. Higher rates may also boost the value of the dollar, which usually moves in the opposite direction of the gold price.
Silver futures closed high in the domestic market on Tuesday as participants engaged in extending their positions taking strong cues from global market. Marketmen attributed the rise in silver prices at futures trade to a strong trend in the precious metals overseas.
Crude oil futures closed high in the domestic market on Tuesday as a low 2018 forecast on U.S. crude production and speculation of possible output curbs in Libya and Nigeria fueled the strongest session gain for prices in over a week. Expectations for a second-consecutive weekly decline in U.S. crude supplies also provided support. Traders and analysts were also looking ahead to monthly oil reports from OPEC and the International Energy Agency.
Mentha oil futures were trading lower during the morning trade in the domestic market on Wednesday as investors and speculators cut down their positions in the agri-commodity amid muted physical demand for mentha oil from major consuming industries in the domestic spot market. Further, exiting of bets by traders in the