2. Disclaimer
This presentation is being provided solely for informational purposes. Mercantile Exchange Nepal Limited does not warrant the accuracy or completeness of any information provided in this presentation and such information is provided without any correctness or condition of any kind. Neither Mercantile Exchange Nepal Limited nor any other person associated with the creation of this presentation or its contents shall be liable or responsible to any person for any harm, loss or damage that may arise in connection with the use of this presentation, including without limitation, any indirect, third party, or consequential damages.

3. Fundamental Analysis
The study of the factors that affect physical supply and demand.
General economic principle says demand and supply determine price.
Demand and supply situation helps predicting the price of commodities.
Generally,
Demand > Supply = Higher Prices
Supply >Demand = Lower Prices

4. Factors Affecting Demand & Supply
Production and consumption Level
Trade practices
Government interference
Taxes
Political Events
Weather
Transportation cost
Technological change, etc.

5. Factors Affecting Commodities Price
Every major economic indicator released from major economies impact their respective currencies.
Positive economic data strengthens the currency and negative data weakens the currency.
This impacts the price of commodities accordingly.
US dollar is regarded as the strongest currency that impacts commodity prices.

6. Gold… Data to watch State of US and Euro zone economy
Factors that affect the US dollar
Demand of jewelry in Indian and Chinese market
Interest rate policy of major economies around the globe
IMF announcement regarding it’s gold holdings
Seasonal factors
During the festival season in India and China, price tend to normally rise.

7. Crude Oil Crude oil Major Reserve
Saudi Arabia, Iraq, Canada, Iran and Kuwait
Largest Producer
Saudi Arabia, Russia, US, Iran
Major Consumer
US, China, Japan, Euro zone
OPEC countries control 40% supply of crude oil globally.

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