On a fortnightly basis, the global equity markets remained slightly under pressure owing to number of global developments that prompted the traders to place safe bets. From the US front, the Federal Reserve Chairwoman spoke about the possibility of a rate hike sometime later this year, though the decision would continue to rely on economic data. From the EU front, the ECB President commented over additional time needed to assess the recent financial turbulences in emerging markets that has kept the growth stagnant. The policymakers also hinted that it was too early to decide whether or not to add stimulus measures thereby keeping the Euro supportive. The Indian Rupee appreciated marginally by 0.09 per cent in the last fortnight after the RBI gave permission to the Indian corporates to raise funds from overseas market in rupee denominated bonds having some limited end use restrictions with a minimum maturity of five years. Moreover, the Indian Central Bank in its fourth bi-monthly monetary policy review reduced the interest rates by 50 basis points which were followed by several banks announcing a cut in their base rates. In the past fortnight, spot gold prices traded lower by 0.11 per cent to close at $1,137.74 while MCX gold prices declined by 2.63 per cent. Strength in American equities and the dollar dampened a rally fueled by the Federal Reserve's decision last week to keep the US interest rates on hold. Weakness in other commodities also weighed on gold, which rallied in the past fortnight after the Fed left rates at ultra-low levels, keeping a lid on the opportunity cost of holding non-yielding bullion. Prices recorded its biggest quarterly loss in a year. The American jobs data came in stronger than expected and the market awaited clarity on the timing of a hotly anticipated U.S. interest rate rise. That capped off gold's worst quarter since the third quarter of 2014, having fallen nearly 5 per cent since July. It was its fifth successive quarter of losses, the longest such streak since 1997. International silver prices surged by more than 2 per cent while MCX silver prices jumped by 1.7 per cent in the past fortnight. Price rise is in tandem with gains in gold prices. Weakening dollar coupled with rising base metal prices acted as positive factors. LME Copper prices returned to the red territory and plunged by around 3 per cent after two consecutive positive fortnights as weaker-than-expected Industrial output and fixed asset investment data for August from China fuelled fears that the nation could fail to achieve a 7 per cent growth target this year. In addition, rising costs and falling product prices pushed profits earned by Chinese industrial companies lower to decline at the sharpest rate in four years in August. However, sharp losses were cushioned as decision by the Federal Reserve to hold rates steady between 0 - 0.25 per cent will be supportive for dollar denominated commodities. Also, supply disruption concerns were taken in to consideration by investors as Glencore last week shocked markets with a decision to shut two large copper mines in Africa, taking roughly 400,000 metric tons of annual copper supply off the market, following moves by Freeport McMoRan Inc. and Chile's Codelco to scuttle expansion projects. MCX copper prices declined by 3.6 per cent in the last fifteen days in line with international trends. In the past fortnight, WTI oil prices gained marginally by around 0.13 per cent while MCX crude oil prices also rose by 0.07 per cent. Data from US showed a surge in domestic inventories while Brent oil rose on worries about Russian airstrikes in Syria. For the quarter ended 30th September 2014, both Brent and U.S. crude were down 24 per cent for their sharpest decline since the end of 2014. Heavy oil oversupply and eroding demand for energy in No. 2 economy China and other Asian and emerging markets have halved crude prices over the last year. In China, industrial companies' profits fell at their fastest rate in four years, sparking fresh worries about the growth of the economy. Outlook Poor non-farm payrolls data from the US has raised concerns about the state of the labor sector while increased optimism about the rate hike has been delayed for the time being which in turn will act as a positive factor for the gold prices. Oil prices continue to be dominated by bearish sentiments as oversupplies on one hand and slow growth in China on the other hand will lower the demand for crude oil in turn exerting downside pressure on oil prices. We expect base metal prices to trade lower owing to pending crucial GDP and industrial production data from the biggest consumer, China. Also, investors will keenly await US inflation data.

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