Gold near 3-week low as jobs data spur tapering bets, Copper climbs

Dubai-UAE (Nov 11)  Gold has dropped to a three-week low as jobs data has spurred tapering bets while copper has extended gains on China production, US jobs data. Indian Rupee has dropped to a 8-week low to 63.25.

Market pulse
-U.S. employers added 204,000 workers in October vs. a forecast of 120,000.
-Forecast: Factory output in Euro-zone declined.
-European Central Bank cut rates unexpectedly to 0.25%, bringing it at par with US.
-Forecast: Euro-area industrial output fell 0.3 % in Sept. vs. 1 % rise Aug.
-ECB President Mario Draghi " EU risks a prolonged period of low inflation".
-Japan recorded a current account deficit of $1.3 billion in Sept the most since 1985.
-The U.K. jobless rate fell to 7.6 % in the 3rd quarter.
-Dollar Holds Gain Versus Yen Before Fed Officials Speak Tomorrow.
-Australian Yields Rise on U.S., China Growth.

Commodities
-Gold Vault Opens in China as Bullion Goes From West to East.
-Hedge Funds Cut Bullish Gold Wagers on Fed Outlook.
-Brent Rises Second Day After Iran Talks Fall Short of Agreement .
-Copper Climbs for Third Day on China Production, U.S. Jobs Data.
-Gold drops near 3-Week low as jobs Data spur tapering bets.

Indian INR markets 
India's rupee dropped to an 8- week low. The rupee fell 1.2 % to 63.25. It touched 63.2625 earlier, the weakest level since Sept. 18. 1-month volatility fell 24 basis points to 12.51 %. 3-month forwards dropped 0.9 % to 64.7. Offshore non- deliverable contracts declined 0.1 % to 65.09.

Factors
-10-year government bond yield climbed to the highest since August.
-10Y yield climbed 13 basis points to 9.12 %.
-U.S. jobs data bolstered the case for the Federal Reserve to trim stimulus.
-U.S. payrolls rose 204,000 in October, almost twice as much as forecast.
-CPI rose 9.9 % in October compared with 9.84 % in September.
-Forecast: IIP rose 3.5 % in September, after a 0.6 % gain in August.

Foreign Exchange markets 
The dollar held a 2-week gain versus the yen. The dollar was at 99 after climbing 1 % to 99.05 on Nov. 8. It gained 1.7 % over the past 2 weeks. The dollar was little changed at $1.3363 per euro. Euro fell 0.1 % to 132.29 yen. The pound traded little changed at 83.44 pence per euro after touching 83.01 pence on Nov. 7, the most since January.

Factors
-U.S. employers added 204,000 workers in October vs. a forecast of 120,000.
-Forecast: Factory output in Euro-zone declined.
-European Central Bank cut rates unexpectedly to 0.25% bringing it at par with US.
-Forecast: Euro-area industrial output fell 0.3 % in Sept. vs. 1 % rise Aug.
-ECB President Mario Draghi " EU risks a prolonged period of low inflation".
-Japan recorded a current account deficit of $1.3 billion in Sept the most since 1985.
-The U.K. jobless rate fell to 7.6 % in the 3rd quarter.

Surprises: ECB cuts rates to 0.25% citing deflation, US jobs double than expected.
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