MUMBAI: Indian gold extended losses yesterday to hit their lowest level in three weeks, but a weaker rupee limited the downside in prices, keeping away physical importers amid tight supplies.
The most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.29 percent lower at Rs. 26,790 per 10 grams. It earlier hit a low of Rs. 26,727, a level last seen on May 30.
Gold imports into India, the world's biggest buyer of the metal, fell from an average of $ 135 million per day in the first half of May to $ 36 million in the second half, Finance Minister P. Chidambaram said last week.
India has ruled out a blanket ban on gold imports or any increase in customs duty from the current 8 percent.
Meanwhile, Chidambaram said yesterday there is no need to react and panic over the rupee's fall.
The rupee had slumped to a record low of 59.9850 to the dollar on Thursday, following the US Federal Reserve's statement on its plan to wind down the monetary stimulus.
"We are not insulated from what is happening in the rest of the world," Chidambaram said at a press conference. "My request is we should not react and panic. It is happening around the world."
Chidambaram said policymakers were monitoring the rupee and the Reserve Bank of India would do whatever was needed to stem the fall.
Indian gold prices fall to 3-week low
Indian gold prices fall to 3-week low
European gas prices soar almost 50% as Iran conflict halts Qatar LNG output
- Analysts warn prolonged disruption could push prices higher
- Some shipments of oil, LNG through Strait of Hormuz suspended
- Benchmark Asian LNG price up almost 39 percent
LONDON: Benchmark Dutch and British wholesale gas prices soared by almost 50 percent on Monday, after major liquefied natural gas exporter Qatar Energy said it had halted production due to attacks in the Middle East.
Qatar, soon to cement its role as the world’s second largest LNG exporter after the US, plays a major role in balancing both Asian and European markets’ demand of LNG.
Most tanker owners, oil majors and trading houses have suspended crude oil, fuel and liquefied natural gas shipments via the Strait of Hormuz, trade sources said, after Tehran warned ships against moving through the waterway.
Europe has increased imports of LNG over the past few years as it seeks to phase out Russian gas following Russia’s invasion of Ukraine.
Around 20 percent of the world’s LNG transits through the Strait of Hormuz and a prolonged suspension or full closure would increase global competition for other sources of the gas, driving up prices internationally.
“Disruptions to LNG flows would reignite competition between Asia and Europe for available cargoes,” said Massimo Di Odoardo, vice president, gas and LNG research at Wood Mackenzie.
The Dutch front-month contract at the TTF hub, seen as a benchmark price for Europe, was up €14.56 at €46.52 per megawatt hour, or around $15.92/mmBtu, by 12:55 p.m. GMT, ICE data showed.
Prices were already some 25 percent higher earlier in the day but extended gains after QatarEnergy’s production halt.
Benchmark Asian LNG prices jumped almost 39 percent on Monday morning with the S&P Global Energy Japan-Korea-Marker, widely used as an Asian LNG benchmark, at $15.068 per million British thermal units, Platts data showed.
“If LNG/gas markets start to price in an extended period of losses to Qatari LNG supply, TTF could potentially spike to 80-100 euros/MWh ($28-35/mmBtu),” Warren Patterson, head of commodities strategy at ING, said. The British April contract was up 40.83 pence at 119.40 pence per therm, ICE data showed.
Europe is also relying on LNG imports to help fill its gas storage sites which have been depleted over the winter and are currently around 30 percent full, the latest data from Gas Infrastructure Europe showed. In the European carbon market, the benchmark contract was down €1.10 at €69.17 a tonne
