Fundamental Factors Affecting the Commodity Market.....!!!

The Indian economy is witnessing a mini revolution in commodity derivatives and risk management. Commodity options trading and cash settlement of commodity futures had been banned since1952 and until 2002 commodity derivatives market was virtually non-existent, except some negligible activation an OTC basis. Now in September 2005, the country has 3 national level electronic exchange and 21 regional exchanges for trading commodity future derivatives. As many as 103 commodities have been allowed for derivative trading. In this article we will discuss the various aspects of Commodity Marke

Basics of Commodity Markets in India :

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What are commodities and commodity markets?

 Any goods that are unbranded and traded commonly, such as Gold, Silver, Zinc, Rubber, Pepper, Sugar etc are a few of them.

Basically there are two type of markets, Spot and Future (Derivative) markets. In spot goods / commodity is bought and sold in physical form, whereas in Derivative market there are instruments based on commodity are traded via regularized exchanges.

In India we have two major exchanges which are: MCX (Multi Commodity Exchange) and NCDEX (National Commodity Derivatives Exchange). Brokers get registered with these exchanges and in turn clients with brokers.  

Gold Price Momentum Remains Momentarily Up, But Must be Confirmed

STRONG day for the SILVER PRICE, not so strong for everything else.

Although both SILVER and GOLD PRICES rose today, they didn't exactly agree. The GOLD PRICE rose a modest $3.40 to close Comex at $1,526.60. Yes, yes, higher than yesterday but not clear of that $1,525 resistance area. Tried once to clear it and stopped at $1,532. Today's work doesn't precisely disqualify gold from advancing tomorrow -- after all, it might reasonably have trouble with that $1,525 resistance for a day or so. However, on a longer term chart it has that double-toppy look with that last peak at $1,526.20 (intraday).