Gold up 1%, comes off 4-1/2 month low

May 17, 2012 By Leave a Comment

Gold rose about 1% on Thursday as bargain hunters resurfaced after prices tumbled to another 4-1/2 month low in the previous session and the euro rebounded, but gains could be limited by fears of a deepening debt crisis in Greece.

Investors have

unwound their bullish bets in gold, cashing in the metal to cover for losses in other markets, after the turmoil in Europe raised the spectre of a recession that threatens to hurt the global economy.

Spot gold added USD 12.23 an ounce to USD 1,550.53 by 0618 GMT, after rising to a high of USD 1,553.36 earlier, as the euro regained strength following a drop to a four-month low on Wednesday. Bullion plunged to USD 1,527 – its weakest since December 29 – on Wednesday.

“For now, we could see some buying on dips below USD 1,550. The situation in Greece seems uncertain and the outcome could turn the markets either way,” said Lynette Tan, an analyst with Phillip Futures in Singapore.

“Investors are currently trading cautiously and we expect gold to be range trading. For now, it’s probably between USD 1,500 and USD 1,550.”

US gold futures hit a high of USD 1,553.7 an ounce and was at USD 1,550.60, up USD 14.00. The contract had plunged to a multi-month low of USD 1,526.70 on Wednesday.

Gold, traditionally a safe-haven asset, has been moving in tandem with riskier assets such as equities, industrial metals and oil this year, as investors turn to the safety of the dollar.

But in China, gold demand hit a record high in the first quarter on investor worries over inflation and property market curbs, the World Gold Council said on Thursday, bucking a lower trend in global consumption driven by higher gold prices.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5% on short covering, after sliding more than 3% – its biggest one-day drop in six months – in the previous session.

But fears of contagion spreading to other stressed euro zone economies lingered after the European Central Bank said it has stopped providing liquidity to some Greek banks as they have not been successfully recapitalised.

IMF chief Christine Lagarde warned of “extremely expensive” consequences if Greece were to leave the euro zone, a once taboo possibility that European leaders have begun to discuss openly given the nation’s political chaos.

“Austerity is imposing intolerable unemployment and political chaos in Greece, and won’t permit it to repay its debts. Athens must abandon the euro and reintroduce the drachma,” said Peter Morici, an economist at the University of Maryland.

“For austerity and debt restructuring to work, Greece must generate new exports and curb imports to accomplish trade surpluses and earn euro to begin paying off its remaining debt.”

Filed Under: International News Tagged With: , , , , , , ,

PRECIOUS-Gold rises as its allure back after China data

July 17, 2010 By Leave a Comment

TOKYO, July 15 (Reuters) – Gold edged up on Thursday after
China’s growth data for the second quarter was slightly weaker
than expected, helping revive the precious metal’s allure as a
hedge at a time of economic uncertainty.

Meanwhile, economists expect Beijing to take no dramatic
policy response to Thursday’s data, which is seen as positive for
the precious metal’s demand in China, analysts said.
[ID:nTOE66D08E]

“The GDP figure is still relatively good, and that could
prompt the Chinese to buy some amount of gold. So I see an
uptrend in the gold-friendly country,” said Ong Yi Ling,
investment analyst at Phillip Futures in Singapore.

Spot gold XAU= was at $1,212.45 per ounce as of 0346 GMT,
up 0.4 percent from late New York levels of $1,207.50. [GOL/]

It rose to a one-week high of $1,217.85 an ounce on
Wednesday. But it later succumbed to profit-taking as the euro
and the U.S. equity markets fell, responding to lessening
investor interest in taking on risk after a downbeat assessment
of the U.S. economic recovery by the Federal Reserve.

Technically, it is expected to rise to $1,223 as the second
upward wave “c” is unfolding within a rising channel.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a graphic on 24-hour gold technical outlook, click:
here
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Thursday’s data showed China’s economy slowed in the second
quarter as the government steered monetary and fiscal policy back
to normal after a record credit surge last year to counter the
global crisis. [ID:nTOE66D06L]

China’s annual gross domestic product growth moderated to
10.3 percent from 11.9 percent in the first quarter. The reading
was slightly below market forecast of 10.5 percent growth.

U.S. gold futures for August delivery GCQ0 rose $5.10 or
0.4 percent to $1,212.10 per ounce. The contract fell $6.50 to
$1,207 on Wednesday.

“The downside for gold appears to be capped and we may see
some gains,” said Phillip Futures’ Ong Yi Ling.

“The pace of the economic recovery is slowing. This is
reinforced by the Fed’s minutes and weak retail sales figures
yesterday and also the weaker than expected Chinese economic
figures. This may drive investors to seek out gold as a form of
portfolio insurance.”

In other financial markets, the Australian dollar jumped
about 0.3 percentage point, paring earlier losses, while U.S. S&P
stock futures erased earlier losses on Thursday after a series of
Chinese data eased worries about a slowdown in China. [USD/]

The world’s largest gold-backed exchange-traded fund, the
SPDR Gold Trust (GLD.P), said holdings stood at 1,314.819 tonnes
as of Wednesday, unchanged for the second day in a row.

The holdings managed to rise earlier this week, reversing a
downtrend from a record 1,320.436 tonnes marked in late June.
[GOL/SPDR]

Precious metals prices at 0342 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1211.65 4.15 0.34 10.58
Spot Silver 18.33 0.09 0.49 8.91
Spot Platinum 1522.50 3.00 0.20 3.78
Spot Palladium 464.50 0.00 0.00 14.55
TOCOM Gold 3450 -29.00 -0.83 5.86 25776
TOCOM Platinum 4364 -48.00 -1.09 -0.39 11790
TOCOM Silver 53 0.00 0.00 2.13 88
TOCOM Palladium 1334 -10.00 -0.74 14.51 84
Euro/Dollar 1.2748
Dollar/Yen 88.2600
TOCOM prices in yen per gram. Spot prices in $ per ounce

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

PRECIOUS-Gold rises as its allure back after China data

July 16, 2010 By Leave a Comment

TOKYO, July 15 (Reuters) – Gold edged up on Thursday after
China’s growth data for the second quarter was slightly weaker
than expected, helping revive the precious metal’s allure as a
hedge at a time of economic uncertainty.

Meanwhile, economists expect Beijing to take no dramatic
policy response to Thursday’s data, which is seen as positive for
the precious metal’s demand in China, analysts said.
[ID:nTOE66D08E]

“The GDP figure is still relatively good, and that could
prompt the Chinese to buy some amount of gold. So I see an
uptrend in the gold-friendly country,” said Ong Yi Ling,
investment analyst at Phillip Futures in Singapore.

Spot gold XAU= was at $1,212.45 per ounce as of 0346 GMT,
up 0.4 percent from late New York levels of $1,207.50. [GOL/]

It rose to a one-week high of $1,217.85 an ounce on
Wednesday. But it later succumbed to profit-taking as the euro
and the U.S. equity markets fell, responding to lessening
investor interest in taking on risk after a downbeat assessment
of the U.S. economic recovery by the Federal Reserve.

Technically, it is expected to rise to $1,223 as the second
upward wave “c” is unfolding within a rising channel.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a graphic on 24-hour gold technical outlook, click:
here
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Thursday’s data showed China’s economy slowed in the second
quarter as the government steered monetary and fiscal policy back
to normal after a record credit surge last year to counter the
global crisis. [ID:nTOE66D06L]

China’s annual gross domestic product growth moderated to
10.3 percent from 11.9 percent in the first quarter. The reading
was slightly below market forecast of 10.5 percent growth.

U.S. gold futures for August delivery GCQ0 rose $5.10 or
0.4 percent to $1,212.10 per ounce. The contract fell $6.50 to
$1,207 on Wednesday.

“The downside for gold appears to be capped and we may see
some gains,” said Phillip Futures’ Ong Yi Ling.

“The pace of the economic recovery is slowing. This is
reinforced by the Fed’s minutes and weak retail sales figures
yesterday and also the weaker than expected Chinese economic
figures. This may drive investors to seek out gold as a form of
portfolio insurance.”

In other financial markets, the Australian dollar jumped
about 0.3 percentage point, paring earlier losses, while U.S. S&P
stock futures erased earlier losses on Thursday after a series of
Chinese data eased worries about a slowdown in China. [USD/]

The world’s largest gold-backed exchange-traded fund, the
SPDR Gold Trust (GLD.P), said holdings stood at 1,314.819 tonnes
as of Wednesday, unchanged for the second day in a row.

The holdings managed to rise earlier this week, reversing a
downtrend from a record 1,320.436 tonnes marked in late June.
[GOL/SPDR]

Precious metals prices at 0342 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1211.65 4.15 0.34 10.58
Spot Silver 18.33 0.09 0.49 8.91
Spot Platinum 1522.50 3.00 0.20 3.78
Spot Palladium 464.50 0.00 0.00 14.55
TOCOM Gold 3450 -29.00 -0.83 5.86 25776
TOCOM Platinum 4364 -48.00 -1.09 -0.39 11790
TOCOM Silver 53 0.00 0.00 2.13 88
TOCOM Palladium 1334 -10.00 -0.74 14.51 84
Euro/Dollar 1.2748
Dollar/Yen 88.2600
TOCOM prices in yen per gram. Spot prices in $ per ounce

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

RPT-PRECIOUS-Gold ticks up on firm stocks, euro; ETF slips

July 6, 2010 By Leave a Comment

SINGAPORE, July 5 (Reuters) – Gold ticked up on Monday
after a drop in the U.S. dollar spurred bargain hunting, with
firmer stock markets spurring investors to shrug off a slight
decline in ETF holdings.

Jewellers were on the sidelines after buying heavily on
Friday, when bullion fell to a five-week low. With U.S.
investors away for a holiday, the metal was likely to trade in
a tight range of $1,210 to $1,215 an ounce.

Gold XAU= rose $1.15 to $1,211.75 by 0610 GMT, having
fallen below the key psychological level of $1,200 on Friday.
The metal struck a record above $1,264 in late June on worries
the European debt crisis would spread and the U.S. economy was
slowing.

“I wouldn’t say that jewellery or physical buying would
really provide support because prices are still relatively
high. But of course people are buying on dips,” said Ong Yi
Ling, investment analyst at Phillip Futures in Singapore.

“I don’t foresee it dropping below $1,200. I think on a
long-term basis, I would still be bullish.”

For a graphic of the 24-hr gold technical outlook, click:
here

U.S. gold futures for August delivery GCQ0 added $4.5 an
ounce to $1,212.2.

The world’s largest gold-backed exchange-traded fund, SPDR
Gold Trust, said its holdings slipped to 1,318.915 tonnes by
July 2 from 1,319.219 on July 1. The holdings hit a record at
1,320.436 tonnes on June 29. [GOL/SPDR]

“For people to really think that investment demand for gold
is declining, it has to drop a lot more than what we are seeing
right now,” said Ong.

The dollar was at its lowest in nearly two months on Monday
and the euro paused after last week’s boost from unwinding of
short and leveraged positions, with traders and analysts seeing
scope for it to squeeze a bit higher. [USD/]

The MSCI index of Asia Pacific shares outside Japan
.MIAPJ0000PUS was up 0.2 percent, though gains in resources
and technology shares were mostly offset by declines in
consumer staples, financials and telecom stocks. [MKTS/GLOB]

“Bargain hunters have pushed up the gold market. I don’t
see much demand from the jewellery sector. They had bought a
lot on Friday,” said a dealer in Hong Kong.

“In the absence of U.S. players, the market may have a
chance to edge up in Asia but then drop again when Europe
starts trading.”

Oil rebounded from three-week lows on Monday, staying above
$72 as the market assessed the implications of a slowing global
economic recovery on energy use. [O/R]
Precious metals prices at 0610 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1211.75 1.15 +0.09 10.59
Spot Silver 17.84 0.04 +0.22 6.00
Spot Platinum 1509.50 13.00 +0.87 2.90
Spot Palladium 429.50 -0.50 -0.12 5.92
TOCOM Gold 3437.00 8.00 +0.23 5.46
35334
TOCOM Platinum 4300.00 -2.00 -0.05 -1.85
12601
TOCOM Silver 51.10 -0.40 -0.78 -1.16
318
TOCOM Palladium 1222.00 -18.00 -1.45 4.89
304
Euro/Dollar 1.2531
Dollar/Yen 87.93
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

PRECIOUS-Gold ticks up on firm stocks, euro; ETF slips

July 6, 2010 By Leave a Comment

SINGAPORE, July 5 (Reuters) – Gold ticked up on Monday
after a drop in the U.S. dollar spurred bargain hunting, with
firmer stock markets helping investors shrug off a slight
decline in ETF holdings.

Jewellers were on the sidelines after buying heavily on
Friday, when bullion fell to a five-week low. With U.S.
investors away for a holiday, the metal was likely to trade in
a tight range of $1,210 to $1,215 an ounce.

Gold XAU= rose $2.95 to $1,213.55 by 0440 GMT, having
fallen below the psychological level of $1,200 on Friday. The
metal struck a record above $1,264 in late June on worries the
European debt crisis would spread and the U.S. economy was
slowing.

“I wouldn’t say that jewellery or physical buying would
really provide support because prices are still relatively
high. But of course people are buying on dips,” said Ong Yi
Ling, investment analyst at Phillip Futures in Singapore.

“I don’t foresee it dropping below $1,200. I think on a
long-term basis, I would still be bullish,” she added.

For a graphic of the 24-hr gold technical outlook, click:
here

U.S. gold futures for August delivery GCQ0 added $5.3 an
ounce to $1,213.

The world’s largest gold-backed exchange-traded fund, SPDR
Gold Trust, said its holdings slipped to 1,318.915 tonnes by
July 2 from 1,319.219 on July 1. The holdings hit a record at
1,320.436 tonnes on June 29. [GOL/SPDR]

“For people to really think that investment demand for gold
is declining, it has to drop a lot more than what we are seeing
right now,” said Ong.

The dollar was at its lowest in nearly two months on Monday
and the euro paused after last week’s boost from unwinding of
short and leveraged positions, with traders and analysts seeing
scope for it to squeeze a bit higher. [USD/]

The MSCI index of Asia Pacific shares outside Japan
.MIAPJ0000PUS was up 0.2 percent, though gains in resources
and technology shares were mostly offset by declines in
consumer staples, financials and telecom stocks. [MKTS/GLOB]

“Bargain hunters have pushed up the gold market. I don’t
see much demand from the jewellery sector. They had bought a
lot on Friday,” said a dealer in Hong Kong.

“In the absence of U.S. players, the market may have a
chance to edge up in Asia but then drop again when Europe
starts trading.”

Oil rebounded from three-week lows on Monday, staying above
$72 as the market assessed the implications of a slowing global
economic recovery on energy use. [O/R]
Precious metals prices at 0440 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1213.55 2.95 +0.24 10.76
Spot Silver 17.88 0.08 +0.45 6.24
Spot Platinum 1510.00 13.50 +0.90 2.93
Spot Palladium 429.00 -1.00 -0.23 5.80
TOCOM Gold 3441.00 12.00 +0.35 5.58
31886
TOCOM Platinum 4299.00 -3.00 -0.07 -1.87
10858
TOCOM Silver 51.10 -0.40 -0.78 -1.16
305
TOCOM Palladium 1231.00 -9.00 -0.73 5.67
277
Euro/Dollar 1.2539
Dollar/Yen 87.90
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Michael Urquhart)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

PRECIOUS-Gold falls from 3-month high on firm dlr; PGMs choppy

April 9, 2010 By Leave a Comment

SINGAPORE, April 8 (Reuters) – Gold slipped on Thursday
after rising to its highest in nearly three months the previous
day as a strong dollar ignited selling in the physical sector,
while platinum group metals struggled to hold gains after a
rally.

Volume was light, making precious metals prone to sharp
movements. Investors wary about Greece’s ability to resolve its
fiscal problems could still turn to gold as safe-haven but
further rallies in the dollar could cap gains.

Spot gold XAU= was at $1,146.25 an ounce by 0343 GMT,
down 75 cents from New York’s notional close on Wednesday, when
it rose as high as $1,152.75 an ounce, its strongest since
mid-January, despite a tumbling euro.
“It’s been rising too fast, so of course there’s profit taking
in the market. Everytime gold approaches $1,150-$1,152, it
can’t break through, so I guess we are cautious about these
levels,” said Ronald Leung, director of Lee Cheong Gold Dealers
in Hong Kong.

“We’re still watching developments in Greece. Sentiment is
a bit bullish,” said Leung, referring to the prospect of low
interest in the United States that boosts gold’s safe-haven
appeal.

Palladium XPD= hardly changed after hitting a two-year
high around $511 on Wednesday on early buying by Japanese auto
catalyst makers as well as gains in gold prices.

Sister metal platinum XPT= rose as high as $1,716.50 an
ounce on Thursday on the back of early buying in Tokyo platinum
futures <0#JPL:> before easing slightly. The metal had risen to
a 20-month high of $1,723 on Wednesday.

Platinum group metals have benefitted from expectations of
an economic recovery, with dealers reporting steady demand from
auto catalyst makers in Japan.

The euro hovered within reach of this year’s low against
the dollar on Thursday after Greece’s borrowing costs hit a new
high and its banks asked for support, while the yen was firm
following a drop in U.S. Treasury yields. [USD/]

U.S. gold futures for June delivery GCM0 fell $5.6 an
ounce to $1,147.4 an ounce, having risen to its strongest in
nearly three months the previous day.

The world’s largest gold-backed exchange-traded fund, SPDR
Gold Trust (GLD), said its holdings stood at 1,130.737 tonnes
by April 7, up 0.914 tonnes from the previous business day.
[GOL/SPDR]

“I think gold is consolidating. There’s some physical
selling but the amount is not substantial,” said a dealer in
Hong Kong. “Consumers are waiting for fresh leads,” he added.

Indian jewellers are stocking up as the wedding season
kicks in in the world’s largest gold consumer, but higher
bullion prices have ignited selling in other parts of Asia,
dealers said on Wednesday. [GOL/AS]
Precious metals prices at 0343 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1146.25 -0.75 -0.07 4.61
Spot Silver 18.09 -0.02 -0.11 7.49
Spot Platinum 1710.50 10.00 +0.59 16.60
Spot Palladium 505.75 -0.25 -0.05 24.72
TOCOM Gold 3447.00 5.00 +0.15 5.77
30868
TOCOM Platinum 5123.00 -44.00 -0.85 16.94
15455
TOCOM Silver 54.80 0.10 +0.18 6.00
567
TOCOM Palladium 1504.00 -32.00 -2.08 29.10
441
Euro/Dollar 1.3334
Dollar/Yen 93.22
TOCOM prices in yen per gram. Spot prices in $ per ounce.

(Editing by Ed Lane)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Gold dips from 2-week high as euro pauses

April 3, 2010 By Leave a Comment

(Reuters) – Gold prices slipped from two-week highs on Friday as the euro eased after gaining against the dollar the previous day, with activity subdued due to Easter holidays in many Asian and most European markets.

As the global economic recovery becomes more evident, gold may come under pressure, with investors turning to other commodities which traditionally gain on strengthening industrial demand such as platinum and palladium, traders said.

“Gold will be seen as an underperformer when the economic outlook brightens, with investors showing more interest in other commodities which benefit from rising industrial demand,” said Wakako Harada, a senior trader at Mitsubishi Corp in Tokyo.

“An economic recovery is not necessarily a bullish factor for gold, which may succumb to selling pressure after its bull run,” she said.

Spot gold was confined to a narrow $5 range, trading at $1,120.00 per ounce as of 0513 GMT, down 0.5 percent from New York’s notional close of $1.125.50 per ounce. At this level, spot gold is set for a 1 percent weekly gain.

Bullion ended the first quarter nearly 2 percent higher on currency volatility related to euro zone debt and firm stock markets, but it has struggled to sustain gains since hitting a record above $1,200 an ounce in December.

U.S. gold futures for June delivery settled at $1,126.10 an ounce on Thursday on the COMEX division of NYMEX.

Spot gold rose to $1,127.75 an ounce on Thursday, its highest since March 17, while platinum group metals rallied to their highest in more than 20 months as fresh investment money poured into commodities and other asset classes across the board.

The number of U.S. workers filing new claims for unemployment benefits fell last week and factory activity in March hit its highest level in more than 5-½ years, strengthening hopes for continued economic growth without government support.

Thursday’s data came a day before the release of the closely watched U.S. employment report for March, which is expected to show nonfarm payrolls rose by 190,000 jobs.

As spot platinum hit a 20-mth high, the premium over gold widened to around $544, the highest since September 2008. While gold is seen top-heavy around $1,125, where profit-taking sets in, platinum looks set to gain further as industrial demand strengthens with the economic recovery.

Spot platinum was at $1,660.00 an ounce after hitting a 20-month high of $1,671.50 on Thursday. Silver was at $17.83 after hitting a 10-week high of $17.97 on Thursday. Palladium was near a two-year high of $490 hit on Thursday.

Investment into the world’s largest gold-backed exchange-traded fund, the SPDR Gold Trust, paused with its holdings unchanged at 1,129.823 tons.

The world’s largest silver-backed exchange-traded fund, the iShares Silver Trust, said its holdings fell 61.01 tons to 9,217.17 tons as of April 1, down 0.7 percent from the previous business day.

The euro eased 0.15 percent on Friday after rising against the dollar the previous day.

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

PRECIOUS-Gold dips from 2-week high as euro pauses

April 3, 2010 By Leave a Comment

* Gold slips from 2-week highs as euro eases

* Trade light as most Asia, Europea markets close for Easter

* Coming up: U.S. employment report for March at 1230 GMT

By Chikako Mogi

TOKYO, April 2 (Reuters) – Gold prices slipped from two-week highs on Friday
as the euro eased after gaining against the dollar the previous day, with
activity subdued due to Easter holidays in many Asian and most European markets.

As the global economic recovery becomes more evident, gold may come under
pressure, with investors turning to other commodities which traditionally gain
on strengthening industrial demand such as platinum and palladium, traders said.

“Gold will be seen as an underperformer when the economic outlook brightens,
with investors showing more interest in other commodities which benefit from
rising industrial demand,” said Wakako Harada, a senior trader at Mitsubishi
Corp in Tokyo.

“An economic recovery is not necessarily a bullish factor for gold, which
may succumb to selling pressure after its bull run,” she said.

Spot gold XAU= was confined to a narrow $5 range, trading at $1,120.00 per
ounce as of 0513 GMT, down 0.5 percent from New York’s notional close of
$1.125.50 per ounce. At this level, spot gold is set for a 1 percent weekly
gain.

Bullion ended the first quarter nearly 2 percent higher on currency
volatility related to euro zone debt and firm stock markets, but it has
struggled to sustain gains since hitting a record above $1,200 an ounce in
December.

U.S. gold futures for June delivery GCM0 settled at $1,126.10 an ounce on
Thursday on the COMEX division of NYMEX.

Spot gold XAU= rose to $1,127.75 an ounce on Thursday, its highest since
March 17, while platinum group metals rallied to their highest in more than 20
months as fresh investment money poured into commodities and other asset classes
across the board.

The number of U.S. workers filing new claims for unemployment benefits fell
last week and factory activity in March hit its highest level in more than 5-½
years, strengthening hopes for continued economic growth without government
support. [ID:nN01114317]

Thursday’s data came a day before the release of the closely watched U.S.
employment report for March, which is expected to show nonfarm payrolls rose by
190,000 jobs.

As spot platinum hit a 20-mth high, the premium over gold widened to around
$544, the highest since September 2008. While gold is seen top-heavy around
$1,125, where profit-taking sets in, platinum looks set to gain further as
industrial demand strengthens with the economic recovery.

Spot platinum XPT= was at $1,660.00 an ounce after hitting a 20-month high
of $1,671.50 on Thursday. Silver XAG= was at $17.83 after hitting a 10-week
high of $17.97 on Thursday. Palladium XPD= was near a two-year high of $490
hit on Thursday.

Investment into the world’s largest gold-backed exchange-traded fund, the
SPDR Gold Trust (GLD), paused with its holdings unchanged at 1,129.823 tonnes.
[GOL/SPDR]

The world’s largest silver-backed exchange-traded fund, the iShares Silver
Trust (SLV), said its holdings fell 61.01 tonnes to 9,217.17 tonnes as of April
1, down 0.7 percent from the previous business day. [ID:nTOE630092]

The euro eased 0.15 percent EUR= on Friday after rising against the dollar
the previous day. [USD/]

PRICES

Precious metals prices at 0514 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1120.00 -5.50 -0.49 2.22
Spot Silver 17.83 -0.04 -0.22 5.94
Spot Platinum 1660.00 -8.50 -0.51 13.1
Spot Palladium 490.00 0.00 +0.00 20.84
TOCOM Gold 3393.00 37.00 +1.10 4.11 38578
TOCOM Platinum 5016.00 89.00 +1.81 14.49 17824
TOCOM Silver 54.50 1.30 +2.44 5.42 614
TOCOM Palladium 1474.00 40.00 +2.79 26.52 779
Euro/Dollar 1.3571
Dollar/Yen 93.77
TOCOM prices in yen per gram. Spot prices in $ per ounce.

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Gold price scales a new peak

November 21, 2009 By Leave a Comment

MUMBAI: Hitting new highs is becoming a habit for gold, as it commenced its record-making journey again after a brief overnight pause on the
bullion market here on Friday on hectic buying from stockists and traders supported by positive global cues.

Moving in tandem with the yellow metal, silver too recovered on the back of fresh industrial demand. A slew of reasons are driving the gold rally. Other than eroding dollar valuation, inflated asset prices around the world due to cheap money policies are leading to diversion of funds to buy gold, traders said.

“There is a mad rush for buying gold as everyone wants a piece of it and the trend is set to continue,” they said. Standard gold (99.5 purity) shot up by Rs 105 per ten grams to end at Rs 17,295 from overnight closing level of Rs 17,190. Pure gold (99.9 purity) also rose by Rs 100 per ten grams to finish at Rs 17,380.

Silver ready (.999 fineness) hardened by Rs 160 per kilo to close at Rs 28,885 from Thursday’s closing level of Rs 28,695. In New York, gold futures ended marginally higher on Thursday, as the dollar came slightly off from its highs. Gold for December delivery rose by 70 cents to end at $1,141.90 an ounce. Silver for December delivery was up by 0.2 per cent at $18.455 an ounce.

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Bullion Update and Market Outlook: Nirmal Bang

April 22, 2009 By Leave a Comment

Precious metals extended the loss on Friday on Comex as dollar strengthened sharply against Euro after the comment from ECB president gave a hint they might cut interest rate by quarter basis points led to correction in precious metals.

The world’s largest gold-backed exchange-traded fund, the SPDR Gold Trust, said holdings fell to 1,105.98 tonnes as of April 17, down 13.45 tonnes or 1.2 percent from the previous day. It was the biggest one-day decline since Oct. 3.

The dollar neared a one-month high against the euro with the single currency under selling pressure due to uncertainty over what policy steps the European Central Bank will take next.

ECB President Trichet signaled the bank’s likely next move, saying it could cut its interest rate but only by an additional 25 basis points. Noncommercial net long positions in gold futures listed in New York rose to 129,895 lots as of April 14, up from 127,812 lots a week earlier, weekly report by the Commodity Futures Trading Commission showed.

Gold and silver both expected to trade sideways to down during the day. Strengthening dollar and equity markets might go gainst precious metals and we might see precious metals trading down during the day. If tonight’s leading indicators reports turn out to be better than expected then we might see further correction in precious metals.

We have seen that Gold has made a double bottom formation at $864/oz, breaching that we might see Gold prices even testing $850/oz.

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Bullion Update and Market Outlook: Nirmal Bang

April 21, 2009 By Leave a Comment

Precious metals extended the loss on Friday on Comex as dollar strengthened sharply against Euro after the comment from ECB president gave a hint they might cut interest rate by quarter basis points led to correction in precious metals.

The world’s largest gold-backed exchange-traded fund, the SPDR Gold Trust, said holdings fell to 1,105.98 tonnes as of April 17, down 13.45 tonnes or 1.2 percent from the previous day. It was the biggest one-day decline since Oct. 3.

The dollar neared a one-month high against the euro with the single currency under selling pressure due to uncertainty over what policy steps the European Central Bank will take next.

ECB President Trichet signaled the bank’s likely next move, saying it could cut its interest rate but only by an additional 25 basis points. Noncommercial net long positions in gold futures listed in New York rose to 129,895 lots as of April 14, up from 127,812 lots a week earlier, weekly report by the Commodity Futures Trading Commission showed.

Gold and silver both expected to trade sideways to down during the day. Strengthening dollar and equity markets might go gainst precious metals and we might see precious metals trading down during the day. If tonight’s leading indicators reports turn out to be better than expected then we might see further correction in precious metals.

We have seen that Gold has made a double bottom formation at $864/oz, breaching that we might see Gold prices even testing $850/oz.

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India Gold Weakens On Profit Booking

April 18, 2009 By Leave a Comment

In today’s session, gold futures turned lower after government data showed U.S. consumer prices unexpected fell during the last month, and posted their first 12-month fall since 1955, denting the metal’s appeal as an inflation hedge.

Gold prices fell by Rs 80 in the bullion market on Wednesday because of profit booking amid strong stock markets.

The purchasing for the present marriage season and an improved curve in London bullion market failed to improve prices and prices chop down after traders and stockists indulged in profit booking at advanced levels.

Shifting of funds to the rising bourses also impacted the outlook.

Standard gold and ornaments dropped by Rs 80 each to Rs 14,590 per 10 gram and Rs 14,440 per 10 gram respectively.

Sovereign declined by Rs 50 at Rs 12,350 per piece of eight gram.

Silver ready dropped by 40 to Rs 21,360 per kg and weekly-based delivery by Rs 35 to Rs 21,065 per kg.

Silver coins fell by Rs 100 at Rs 28,000 for buying and Rs 28,100 for selling of 100 pieces.

The precious metal hit a record high of $1,032.70 per ounce on March 17, 2008.

In its annual gold survey report, precious metals consultancy GFMS said that the gold prices could hit record level above $1,100 an ounce during the coming months, as investors seek to guard against growing inflation.

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India gold demand ebbs after pick-up

April 5, 2009 By Leave a Comment

India’s gold demand turned quiet on Friday as most banks, the primary sellers of gold, were closed for a holiday, traders and dealers said.

“Since morning demand is absolutely calm…,” said Daman Prakash, director with MNC Bullion in Chennai.

Traders picked up bargains as gold fell about 2.5 percent in the previous session to replenish stocks in anticipation of wedding demand.

Gold futures traded 0.18 percent lower at 14,664 rupees per 10 grams at 1:51 p.m..

“Yesterday the business was brisk but without great enthusiam. I could sell 85 percent of all gold lying with me since December,” said Prakash. “I had to sell without charging any profit margin.”

“We sold around 200 kgs of gold yesterday evening at around $910 (an ounce levels),” said a dealer with a state-run bank in Mumbai.

Traders said a further correction in prices would boost wedding sales. The wedding season will start in mid-April.

“Most of the bulk orders are placed in $875-905 (an ounce) levels,” said Harshad Ajmera proprietor with Kolkata-based JJ Gold House.

“If prices come down to $880 levels then we could see further business activity,” said a dealer with a large private bank in Mumbai.

Following were prices in rupees on the Multi Commodity Exchange of India Ltd. at 1:52 p.m. :

Contract Current price Net change

======================================================

Jun gold 14,670 -21

May silver 21,437 -144

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India gold falls further on sustained selling pressure

April 3, 2009 By Leave a Comment

India’s gold futures extended losses on Friday on sustained selling pressure after the previous day’s fall by over 2.5 percent on renewed talks of gold sales by the IMF as well as a rally in equity markets, analysts said.

The benchmark June gold contract was 0.41 percent lower at 14,631 rupees per 10 grams at 11:18 a.m., after hitting a low of 14,611 rupees in early deals.

Discussion at a summit of G20 world leaders about selling International Monetary Fund gold to raise extra funds refers to sales over and above existing plans, a British minister said on Thursday.

“Gold is losing its safe haven appeal and more money is chasing equity markets,” said Debjyoti Chatterjee, an associate vice-president with ADMISI Commodities in Mumbai.

“We are expecting further weakness in gold, primarily due to asset re-allocation,” said Chatterjee.

Traders would be closely watching the U.S. manufacturing and non-farm payrolls data for direction in the complex, they added.

“Any rallies will be sold in gold now,” said Gnansekar Thiagarajan, director with Commtrendz Research.

“It can see further downside to 14,350 (rupees),” Thiagarajan added.

Open interest for June gold on MCX was at 13,156 lots, up from 13,129 a day earlier. Volume on Thursday was 82.83 kg.

Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 11:18 a.m. :

Contract Current price Net change

======================================================

Jun 14,637 -54

Aug 14,635 -60

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Customers weary as gold touches record high

February 20, 2009 By Leave a Comment

Chennai, Feb 20 (ANI): Gold continued its record-breaking spree in India as investors poured money into the safe haven asset due to the deepening global recession, analysts said.

“Everything has dropped down. There is a total global meltdown. So, the only good for the investor is to invest the money in gold and anytime they can always get back the money without any loss which make some profit. So that is why gold is the real investment. Now, the price rise is mainly because of the physical buying of gold by the investors,” said Syed Ahamed, a chief adviser, Tamil Nadu Jewellers Federation.

But gold buyers stayed on the sidelines, as prices at record highs continued to hurt demand.

Customers said social obligations forced them to buy gold or otherwise they would have postponed buying.

“The price level was comparable with last week. This week it has increased by 100 rupees. We are middle class family and if there is any function we have to buy gold. Buying gold is a kind of investment for future. Even if the price goes up, a middle class family has to buy gold,” said Puja, a customer.

Gold futures on the continuous charts was 0.70 percent higher at 15,670 rupees per 10 grams, after hitting a record of 15,706 rupees earlier in the session.

Bank gold was 200 rupees dearer than local gold, signifying profit-taking by traders, dealers said.

Traders said the flow of scrap gold continues as consumers cash in on the record-high prices. (ANI)

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