Tag Archives: goldupdates

Gold Heads for Biggest Weekly Gain in Two Years

12 Jul

Federal Reserve Chairman Ben Bernanke said on Wednesday that the overall message from the central bank was that a “highly accommodative policy is needed for the foreseeable future”.

mcx gold

Gold rose for a fifth session on Friday, on track for its biggest weekly gain in nearly two years on easing fears of an early end to US monetary stimulus that as boosted bullion’s appeal as a hedge against inflation.

Fundamentals

Spot gold had climbed 0.1 percent to USD 1,286.21 an ounce by 0016 GMT. It touched close to USD 1,300 on Thursday, its highest in three weeks.

Bullion has gained 5 percent so far this week, on course for its largest weekly climb since October 2011.

Comex gold and silver were also trading near multi-week highs hit on Thursday.

Federal Reserve Chairman Ben Bernanke said on Wednesday that the overall message from the central bank was that a “highly accommodative policy is needed for the foreseeable future”.

Financial markets, which had tumbled after Bernanke said last month that the Fed’s USD 85 billion in monthly bond purchases could be scaled back this year, jumped on Thursday with the Dow and S&P 500 indices hitting all-time closing highs.

Gold, still down nearly 25 percent this year, could face further headwinds as some investors jump to rallying stocks, dumping holdings in gold-backed exchange traded funds.

Investors pulled USD 998.8 million from commodities and precious metals funds, up from withdrawals of USD 92.6 million the prior week, data from Thomson Reuters’ Lipper service showed on Thursday.

Gold traders in India, the world’s biggest buyer of the metal, refrained from fresh purchases as prices climbed to their highest level in more than two weeks.

Market News

The US dollar fell to multi-week lows against the euro and yen on Thursday as traders scaled back expectations the Fed would slow its asset purchases in the coming months.

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India mines miniscule 120 kg Gold in April 2013; yet proves Chidambaram wrong!

14 Jun

“India does not produce an ounce of gold. You pay in rupee, but the government has to spend dollars to buy gold,” Chidambaram said  yesterday.

India has produced 120 kilogram of gold in April this month in sharp contrast to its hundreds of tons in imports. This should also be read in the background of Indian Finance Minsiter’s yesterday’s statement on India’s production and consumption of gold.

“India does not produce an ounce of gold. You pay in rupee, but the government has to spend dollars to buy gold,” Chidambaram said. “I do not buy gold. To think that gold is the safest investment is wrong,” the finance minister said and was quoted by the Times of India as saying.

At least India does produce much more than an ounce of gold!

The index of mineral production of mining and quarrying sector in April 2013 was lower by 16.9% compared to that of the preceding month. The mineral sector has shown a negative growth of 3.1% during April 2013 as compared to that of the corresponding month of previous year.

The total value of mineral production (excluding atomic & minor minerals) in the country during April 2013 was Rs. 17772 crore. The contribution of coal was the highest at Rs. 5673 crore (32%). Next in the order of importance were: petroleum (crude) Rs. 5671 crore, iron ore Rs. 2712 crore, natural gas (utilized) Rs. 1883 crore, lignite Rs. 490 crore and limestone Rs. 382 crore. These six minerals together contributed about 95% of the total value of mineral production in April 2013.

Production level of important minerals in April 2013 were: coal 435 lakh tonnes, lignite 39 lakh tonnes, natural gas (utilized) 2942 million cu. m., petroleum (crude) 31 lakh tonnes, bauxite 2035 thousand tonnes, chromite 242 thousand tonnes, copper conc. 10 thousand tonnes, iron ore 119 lakh tonnes, lead conc. 16 thousand tonnes, manganese ore 194 thousand tonnes, zinc conc. 124 thousand tonnes, apatite & phosphorite 198 thousand tonnes, dolomite 520 thousand tonnes, limestone 242 lakh tonnes, magnesite 16 thousand tonnes and diamond 2928 carat.

In April 2013 the output of apatite & phosphorite increased by 33.6%, bauxite 14.7% and iron ore 1.3% percent. However the production of petroleum (crude) decreased by 3.7%, natural gas (utilized) 5.5%, limestone 5.9%, lead conc. 8.9%, gold 11.1%, dolomite 15.0%, manganese ore 18.1%, copper conc. 18.6%, magnesite 20.3%, zinc conc. 23.0%, lignite 27.9%, chromite 30.3%, coal 33.0% and diamond 33.6 percent.

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