It seems that confidence returned in commodities market with remarkable improvement in trade related activities in China amid positive cues from the major economies. The major indices of Commodities CRB again climbed above 185 on improved sentiments amid weakness in dollar index. Gold amazed investors with its magical upside as again it came in high demand among money managers with tension escalated after many test fire by North Korea. In COMEX, it has crossed the resistance level of $1350 whereas in India, it traded above the mark of 30400. Silver too followed the trend of gold. Markets were nervously eyeing developments in North Korea, where the military conducted its sixth and most powerful nuclear test, which the government said was of an advanced hydrogen bomb for a long-range missile. Hedge funds and money managers raised their net long position in COMEX gold for the 7th straight week in the week to Aug. 29. The speculators also increased their net long position in silver futures and options, CFTC data showed. WTI crude recovered after a continuous fall of five week. Crude prices rose as strong global refining margins and the reopening of US Gulf Coast refineries provided a more bullish outlook after sharp drops due to Hurricane Harvey. But traders remained wary of Hurricane Irma, ranked as one of the five most powerful Atlantic hurricanes in the last 80 years. The magical rally took a break last week on healthy profit booking from higher levels. Copper rose its highest in three years as investment flowed into industrial metals amid surprisingly robust global factory growth, but couldn't stay at higher side. With its robust demand, exchanges trying hard to woo the customers by slashing the transaction charges. Shanghai Futures Exchange cuts nickel, tin transaction fees.
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In agri commodities, trend was mix. In spices, cardamom, turmeric and pepper prices edged up while jeera and dhaniya prices moved down on lackluster trade. Oil seeds and edible oil counter was mostly bearish. US soyabean traded up for continuous four week but Indian market completely ignored the trend and closed the week in negative territory for continuous second week. Kapas and cotton traded firm in line with the international market. It was profit booking time for guar counter and chana.