Gold falls on sluggish demand, global cues
Gold prices fell by Rs 120 to Rs 31,880 per 10 gm to slackened demand at higher levels amid a weak global trend. However, silver held steady at R62,400 per kg in restricted buying from industrial units and coin makers. Traders said subdued demand at prevailing higher levels mainly led to fall in gold prices. They said on weak global trend gold dropped below $1,700 for the first time in a month, as a stalemate in US budget talks weighed on commodities, countering record assets in exchange-traded products.
Record coffee crop cuts costs for Starbucks
Record coffee harvests in Brazil, the biggest grower, are compounding a global glut of arabica used by Starbucks and Dunkin’ Donuts.
Brazilian farmers will reap 50.8 million bags in 2013, a record for a so-called low-crop season, according to the median of nine analyst estimates compiled by Bloomberg. The harvest reached 55.9 million 60-kilogram (132-pound) bags in 2012, an all-time high for a peak year. Output usually drops in alternate years because of growing cycles. Prices may fall 13% to $1.311 a pound by June 30, the average of 14 predictions shows.
Futures slumped about 50% since May 2011, as the highest prices in 14 years spurred Brazilian farmers to boost supply.