Tag Archives: market news

Gold inches up, headed for third weekly gain

26 Jul

Gold edged up on Friday and was headed for its third straight weekly gain, helped by a weaker dollar and hopes of a prolonged period of easy monetary policy.

FUNDAMENTALS

* Spot gold had climbed 0.07 percent to USD1,333.95 an ounce by 0014 GMT, after gaining about 1 percent in the previous session.

* US data showed that new claims for jobless benefits edged higher last week, but remained within a range that suggests the labour market’s recovery is on track.

* Investors fear that strong US economic numbers would prompt the Federal Reserve to start tapering its stimulus measures sooner rather than later.

* China’s gold demand could hit a record 1,000 tonnes this year, the World Gold Council said on Thursday, which means it would overtake India as the world’s biggest bullion consumer.

* Gold premiums in India jumped to USD 20 an ounce over London spot prices on Thursday due to short supplies even as traders, looking to stock up for festivals, waited for prices to fall further from their highest level in more than a month.

* Gold mining companies are expected to cut their gold hedging position by 20 tonnes on a net basis in 2013 even though the price of bullion has fallen sharply, precious metals consultancy Thomson Reuters GFMS said on Thursday.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.26 percent to 927.36 tonnes on Thursday.

* Goldcorp Inc , the world’s largest gold miner by market capitalisation, posted weaker-than-expected second quarter results on Thursday, hit by a sharp drop in the gold price and a USD 2 billion non-cash impairment charge.

MARKET NEWS

* The dollar languished at one-month lows against a basket of major currencies on Friday, having suffered a setback overnight as investors turned cautious ahead of next week’s Fed policy meeting.

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Gold Futures Poised to Rise Next Week: Survey

13 Jul

On the Comex, gold for delivery on August 13 was seen closing at $1,284.15/oz, a gain of $4.25 or 0.33% on Friday.The futures are closed for weekend. Silver on the Comex for delivery on September 13 closed Friday at $19.895/oz, registering a loss of $0.061 or 0.31%.

mcx gold

MUMBAI : If the survey results of Bloomberg are anything to go by, gold futures are poised to climb next week. Nineteen analysts surveyed by Bloomberg think that gold futures may rise next week even as nine analysts were bearish and three neutral.

Gold as of last quarter has lost 23% y/y and witnessed acceleration in declines as US Federal Reserve Chairman Ben Bernanke hinted that the Quantitative Easing measures announced by Fed would see a tapering starting second half of this year.

However, this week the Federal Open Market Committee minutes for June released has showed a bias towards continuing with QE measures. Ben Bernanke himself said that the monetary policy would remain accommodative for the foreseeable time as the revival in economy is fragile.

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This created a rally in futures as prices breached the $1280 mark, an area of significant resistance.

“With the Fed comments, with the increased cost of funding a short position and some recalibration in peoples’ thinking about the end of quantitative easing, the onus is really on the bears now,” said Ross Norman, chief executive officer of Sharps Pixley Ltd to Bloomberg.

“Physical demand is supporting the market very nicely,” he added.

On the Comex, gold for delivery on August 13 was seen closing at $1,284.15/oz, a gain of $4.25 or 0.33% on Friday.The futures are closed for weekend. Silver on the Comex for delivery on September 13 closed Friday at $19.895/oz, registering a loss of $0.061 or 0.31%.

Meanwhile, with the decline in prices, physical demand remained robust in China even as with import curbs in place, Indian merchants are seeking sales controls fearing a shortage.

In India H2, 2013 is marked by festivities like Diwali and Dhanteras, two Hindu festivals which would see enhanced gold buying.

“This is just a temporary measure, but if we don’t follow through with this, there may be a situation when jewellers don’t have any gold to sell. The government and the Reserve Bank of India have already restricted gold imports,” said Vikas Chudasama, director general, All India Gems and Jewellery Trade Federation to the Indian Express.

“This is a request from the federation to all our member jewellers as it will help bring down imports over the next few months and so ease pressure on the current account deficit (CAD),” he noted.

India recently hiked the import duty on gold to 8% and RBI too put in restrictions on import funding by banks. Indian Rupee has dipped substantially and to record lows even as widening CAD is giving sleepless nights to policy makers.

The gold curb measures ‘helped’ the gold imports by India to come down substantially as latest data say.

“Import of gold and silver is understood to have declined substantially to $2-2.5 billion in June, much below the $8.39 billion imported in May, and over $7 billion in April,” a senior government official said and was quoted recently by the Indian Express as saying.

June imports of Gold have dipped to a paltry 28 tons when compared to 162 tons in May. Data says that imports of gold to Gujarat, a major consuming centre, dipped to 3.73 tons in June against the 37.61 tons registered in May as per the air cargo complex data.

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