Gold Updates

All eyes were on Brussels on Wednesday as European ministers met to discuss about the prospects of Greece. Metal traders remained confused on the fate of major industrial metals on contradictory events governing the markets. Barring Nickel other metals were mostly on the sidelines.
On one hand, Europe crisis resurfaced after Moody's downgrade of France credit rating on the contrary US economy continued to resurge. The much talked term fiscal cliff was subsided a bit by the reports of better housing starts last night.
US census bureau reported a rise of 3.6% in the US housing starts in October to 0.894 million. The expectations were of a 3.7% decline. This was highest level of housing starts since July 2008.
Housing starts for September were revised down to 0.863 million units from a previously reported 0.872 million units. Meanwhile, building permits issued in October fell 2.7% to a seasonally adjusted 0.866 million, compared to expectations for a decline to 0.865 million.
In Japan, trade deficit has depicted a gloomy picture as exports fell sharply lower. Japanese exports were also reported to have plunged 6.5% amid tension between Japan and China.
Poor Japanese trade data is negative for Yen, as it increases the odds of more easing from the Bank of Japan. After the data yen tested a seven month low of 81.72 against the Dollar. The trade deficit hit 549 billion yen ($6.72 billion)
The US Dollar dwindled between gains and losses against the Euro before closing lower on Tuesday. The greenback tested a low of 1.2828 and a high of 1.2763. US currency settled at 1.2816, down 0.04%. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched down by 10 pips to 80.89.
LME Copper was almost sideways in Asian trades, trying to gather analyze the confusing situation. Copper three month forwards were trading at $ 7743 per tonne, compared to $ 7750 per tonne on Tuesday. MCX Copper settled at Rs 427.7 per kg. Metal broke its 100 EMA and tested a high of Rs 429.8 per kg.
LME Nickel settled at $ 16360 per tonne yesterday and is now up by $ 85 per tonne at $ 16445 per tonne. Nickel has slipped sharply lower from February 2011 levels of $ 29000 per tonne on fading steel demand.
This year Nickel has whipped 11% of its value in 2012. The prices were at $ 18420 levels at the beginning of this year. Higher production of stainless steel and rise in inventories due to lower demand has affected Nickel negatively.
MCX Nickel tested a one week high on the back of short covering in the current month contract. Stainless steel material Nickel tested a high of Rs 918 per kg before settling at Rs 909 per kg, up 1.2%.
LME Zinc was down by $ 18 per tonne at $ 1916 per tonne on Wednesday. MCX Zinc ended last session at Rs 105.05 per kg, down 0.4%.

Gold Updates

Bullion metals ended lower at Comex on Tuesday, 27 November 2012. Gold prices ended lower for second straight day as the dollar headed up and a sort of debt deal was reached at Greece. Upbeat US data also took some shine away.

Gold for December delivery fell $7.3 (0.4%) to settle at $1,742.3 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.

On Tuesday, December silver fell 16 cents, or 0.5%, to settle at $33.98 an ounce.

In overnight trading, the European stock markets rallied only modestly on news that Euro zone leaders meeting in Brussels agreed late Monday to disburse fresh bailout funds to cash-starved Greece. Most market watchers had reckoned EU leaders would grant new monies to Greece. The world market place showed no significant reaction to the as-expected news on Greece.

A meeting to discuss Greece's finances wrapped up early Tuesday with Greece's institutional lenders reaching a deal to pave the way for Athens to receive almost 44 billion euros (almost $57 billion) of financial aid, while bringing its debt down to a sustainable level. The deal is expected to trigger another aid payment for the debt-struck country.

A heavy slate of U.S. economic data released Tuesday did show generally better-than-expected readings overall, and that put modest upside pressure on the U.S. dollar index, which in turn helped push gold and silver prices to their daily lows.

The dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.2% on Tuesday. The Euro currency also was initially supported on the Greece news but could not hold those gains as the day wore on.

In today's economic news at Wall Street, Consumer confidence rose in November to its best reading in more than four years. The latest consumer confidence reading for November came in at 73.7, while market expected a reading of 73.0. The Conference Board said its consumer confidence index rose to 73.7 in November from 73.1 in October. That's above the 72.2 level forecast. The October reading was upwardly revised from 72.2.

Separately, the September Housing Price Index from the FHFA increased by 1.1%, which follows a 0.7% increase observed during the prior month. Also, the September Case-Shiller 20-city Home Price Index rose by 3.0%, while a 3.1% increase had been expected. This followed the previous month's increase of 2.0%.

Durable goods orders were unchanged in October, which was better than the 0.4% decrease that had been expected. Excluding transportation related items, durable goods orders increased in October by 1.5%, which was better than the 0.4% decrease that had been broadly anticipated. Prior month's reading was revised down to reflect an increase of 1.7%.

Traders and investors are also focused on the negotiations among U.S. lawmakers and President Obama regarding the so-called “fiscal cliff” tax increases and spending cuts that are approaching.

At the MCX, gold prices for February delivery closed lower by Rs 149 (0.45%) at Rs 32,594 per ten grams. Prices rose to a high of Rs 32,825 per 10 grams and fell to a low of Rs 32,550 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed lower by Rs 198 (0.31%) at Rs 63,536/Kg. Prices opened at Rs 63,877/kg and fell to a low of Rs 63,361/Kg during the day's trading.

Gold Updates

Gold futures wavered near $1750 an ounce levels unable to surge further as safe haven appeal for the metal diminished. However the weak US dollar continued to lend support to the metal at lower levels.
Gold has been unable to breach the $1800 mark for more than a year needs some solid reason to breakthrough that level, and the US fiscal cliff could provide the next breakthrough to the metal. The fiscal cliff refers to more than $600 billion of automatic U.S. tax hikes and spending cuts due to occur in January unless circumvented beforehand.
News of a deal to clear the way for Greece’s next aid payment sent the euro higher Tuesday, with the common currency briefly topping the psychologically-important $1.30 handle, while the U.S. dollar lost ground.
The euro changed hands for $1.2987 Tuesday afternoon in East Asia, up from $1.2961 late Monday in North America. The advance came after Greece’s creditors reached a long-awaited deal to pave the way for Athens to receive fresh financial aid
The dollar, meanwhile, moved in the other direction. The ICE dollar index, which measures the greenback against a basket of six other currencies, slipped to 80.114 from 80.227 late Monday.
Gold for December delivery rose 50 cents to $1,750.10 an ounce on the Comex division of the New York Mercantile Exchange during East Asia trading hours.
Greece’s institutional lenders reached a deal to pave the way for Athens to receive almost 44 billion euros (almost $57 billion) of financial aid, while bringing its debt down to a sustainable level.
MCX December gold futures are trading up nearly Rs 55 at Rs 32415 per 10 grams. It may face a resistance near Rs 31475 levels today.

Gold Trading Level's

TUESDAY 27-11-2012


TRADING LEVELS FOR MORNING SESSION



 MCX DEC GOLD


SUPP     32300       32250        32190

RES       32415       32485        32565

Gold updates

The hard drop in Indian Rupee to the 2 ½ month lows bought the Indian metal to the new highs at the time when the marriage season picks up in India.

The Indian rupee continued to decline against the US dollar for the fifth day in early trade on Monday, on persistent dollar demand from banks and importers on the back of higher dollar in the overseas market.

The currency had tumbled by 30 paise to close at two-and-a-half-month low of 55.51 against the dollar in the previous session on Friday. Today it resumed higher at 55.45 per dollar but declined immediately to 55.61 per dollar before quoting at 55.58 per dollar at 10.40 am. It moved in a range of 55.42 per dollar and 55.61 per dollar during the morning deals.

MCX December gold futures are trading up almost by whopping Rs 200 at Rs 31400 per 10 grams, thanks to the cheap Indian Rupee.

On the other hand the international gold futures were little depresses trading down $ 2 at $ 1749 per ounce as the US dollar strengthened amid caution over developments in Europe. On Friday, they soared $23.20 to settle at $1,751.40, their highest level since Oct. 17.

The drop on Monday came as markets awaited the Eurogroup’s talks to approve disbursal of the next tranche of loans to Greece. The general mood in equity and currency trading also portrayed investor risk aversion, as markets digested the result of elections in Spain’s wealthy Catalonia region.

In the region’s elections, a nationalist party seeking a referendum on independence won less seats than required for an absolute majority, but enough to return as the single largest party in the local parliament.

The ICE dollar index, which measures the greenback against a basket of six other global currencies, rose to 80.269 during Asian trading hours from 80.190 Friday afternoon in North America.

Gold has been in demand in international market with several central banks also increasing gold as a part of their reserves with Brazil a latest one to do so. Gold rallied 11% this year as investors and central banks bought bullion to diversify assets.

According to a data provided by the International Monetary Fund, central banks from emerging markets continued to increase their holdings in October. Brazil, Turkey and Kazakhstan, all increased their gold holdings with an aim to diversify their foreign kitty in the back drop of growing macroeconomic uncertainty and ultra period of ultra loose monetary policies-which threatens currencies debasement.

Gold Updates

Gold Flattens After Recent Gains

Gold December futures crushed in the early Asia action today after smash gains of nearly $20 the past buoyed by the rally in equities and weak US dollar.

Wall avenue scored its best session in more than two months the past helped by positive housing data and increasing confidence that a U.S.budget deal would be reached to avoid the so-called “fiscal cliff.”

European stocks likewise saw a strong advance, with many of the region’s main indexes closing more than 2% higher.

In the present day, Asian stocks rose Tuesday after an overnight rally for global stocks on optimism the U.S. fiscal-cliff will be averted, though higher valuations after recent gains and a pre-market downgrade of France’s credit rating helped cap gains.

Hong Kong’s Hang Seng Index added 0.9%, Australia’s S&P/ASX 200 and South Korea’s Kospi rose 0.5% each, and Taiwan’s Tai ex gained 0.3%. Japan’s Nikkei Stock Average rose a modest 0.1% after leading market gains over the past few sessions, while China’s Shanghai compound Index slipped 0.1% after a higher opening.

During the Tokyo midday break, the Bank of Japan released its latest policy decision, keeping its interest-rate target and asset-buying program unmoved.

Gold for December delivery is trading flat at $1,734.9 an ounce on the Comex division of the New York Mercantile Exchange on Monday. Yesterday, it rose $19.7 (1.2%) to settle at $1,734.5 an ounce rising to as high as $1,735.5 during intraday trading.

MCX December gold futures may open today’s session near Rs 31685 levels with support near Rs 31650 levels and 31750 levels.

Gold Updates

The MCX Silver futures broke above Rs 61000 per kg levels today as a good amount of fresh buying helped the metal amid mostly positive movement in global risky assets. The US dollar slipped as US Congressional leaders met with President Barack Obama on Friday and said they would work to find common ground on taxes and spending. This boosted hopes that the world's largest economy would be successfully able to combat with the looming "fiscal cliff". Gains in other industrial commodities like Copper and Crude oil also boosted the metal. COMEX Silver futures are trading at $32.60, up 2.3 cents or 0.73% on the day.

Silver futures extended a downward run from its highs near $35 per ounce achieved in the first week of October 2012. LME Copper tested its two-month lows and kept Silver in tight ranges. Silver is linked directly to industrial activity and safe haven demand and a drop in copper is normally supposed to have a negative influence on the white metal. The commodity tested its two-month lows near $30 per ounce and closed at $32.37, up nearly 5% on the fortnight. The prices have been locked in a broad range of $30-35 per ounce over last few days and a break on the either side is needed for further direction.

Precious metals consultancy GFMS estimates that industrial demand for silver fell 6% in 2012, driven by weak economic growth in developed countries. Manufacturers continued to find ways to substitute cheaper raw materials in place of silver. Meanwhile, consumers have cut purchases of silverware and shifted away from costly precious metals in their jewelry purchases. The trend was partially offset by rising sales in emerging markets, particularly China, GFMS said. While the industrial demand dropped, silver mine supply rose for the 10th consecutive year in 2012, and is expected to total 797.0 million ounces, up 4.3% from 763.8 million ounces in 2011, according to the consultancy.

The white metal had neared $32.30 per ounce levels earlier in the session but edged up quite impressively thereafter, adding one full dollar during the day. The Asian equities added good gains following a near 1.5% surge in Japanese stocks while the European stocks are also up by nearly 1%. MCX Silver futures are trading at Rs 61038, up Rs 168 or 0.26% on the day. The open interest in the counter is up nearly 4% - indicating fresh buying.

Gold updates

Gold futures began week on strong note in Asia electronic trades today, after retreating 1% last week on ongoing fears over the looming fiscal crisis in the U.S. and growing tension in the Middle East.

December delivery gold futures are trading up $7.3 at $ 1722 an ounce on the Comex division of the New York Mercantile Exchange. The counter may find support near $1685 levels with resistance near $1740 levels in the near term.

Silver for December delivery fell 1.1% on Friday to settle the week at $32.30 a troy ounce. Earlier in the session, silver futures touched a one-week low of $32.02 a troy ounce. On the week, silver futures shed 0.7%.

Investors continue to remain concerned over the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1. Congressional leaders said talks with President Barack Obama on Friday to avert the fiscal crisis were "constructive."

There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the seven weeks left before the January 1 deadline.

Gold hit a one-week low of $1,704.55 a troy ounce on Thursday, after the World Gold Council said global demand for the precious metal dropped 11% in the third quarter.

In the coming week, market participants will be focusing on developments relating to the U.S. fiscal cliff, as well as Tuesday’s meeting of the euro group of finance ministers to discuss unlocking Greece’s next aid installment.

MCX December gold futures may open today’s session near Rs 31670 levels with resistance near Rs 31700 -750 levels.

Gold Bulls Ecstatic:

An Obama win favors a continuation of the current easy money policy. The Obama win did remove uncertainty about the future of Fed policy.  The Fed’s increased emphasis on employment is here to stay. The Gold Markets reward this certainty by bidding up Gold, selling off the US Dollar versus all major currencies. Comex gold and silver shot up higher on Expectations of an Obama win & also as the market recovered from the rather hard slide that it took on Friday when Gold markets priced in a Romney win. Gold & Silver will retain bullishness till the easy monetary policy remains in force as Inflation rises are a certain aftereffect of this kind of a policy action. The Fed’s easy-money policy has pushed down the value of the dollar, though, and some worry more dollar weakness may be in store, particularly if investors see signs of rising Inflation. Gold remains a natural hedge option in a scenario where Inflation rises sharply. The Fed said Oct. 24 it will maintain $40 billion in monthly purchases of mortgage debt and probably hold interest rates near zero until mid-2015. The Fed’s increased emphasis on employment is here to stay. The US Dollar reversed earlier gains versus the Euro after Obama defeated Republican challenger Mitt Romney, on speculation Obama’s re-election as President will boost chances of the US continuing monetary stimulus policies that tend to weaken the currency. The US Federal Reserve had unveiled a plan in September 2012, to buy $40 billion of MBS – Mortgage-backed securities every month in a third round of so-called quantitative easing – QE3, after $2.3 trillion purchases of bonds from December 2008 and June 2011. Any worries that the Federal Reserve is done with stimulus are unfounded and the future still looks bright for more easing programs. Fed may soon introduce a new plan of Treasury purchases when Operation Twist winds down into year-end. A Chinese National Party Congress should be favorable to industrial metals, crude oil and gold due to prospects for new stimulus policies. Also if Greece passes austerity measures and receives further financial assistance, “this should make markets feel better and help commodities to move higher. We should start seeing more demand for gold as a result of purchasing-power hedging and due to the low opportunity cost to hold it, as real interest rates are likely to decline further. It could be argued that the Fed would not mind higher inflation, and that if there was a policy error to be made, it would be on the side of inflation. All above mentioned factors are highly Gold supportive. Lower interest rates historically have helped gold prices and higher rates have been gold-negative.

Gold updates

Gold futures stayed steady near $1680 as the US dollar lost ground ahead of the presidential elections tomorrow. Gold may witness some volatility this week with the US elections in the focus.
With the US presidential elections just a day away, campaigning will end tonight, bringing down the curtain on several months of high voltage exchange of words between US President Barack Obama and his Republican challenger Mitt Romney.
Continuing with their hectic election campaigning as in the past few days, both the candidates are scheduled to address a series of meetings crisscrossing the battleground States, beginning early in the morning till late in the night.
Obama and Romney were in a virtual tie for the popular vote, polls showed, but the incumbent is holding a narrow lead in the key battle ground states which would finally determine the results of the November 6 presidential elections.
December delivery gold is trading up $5 at $1680 an ounce levels in mid electronic trades today on the Comex division of the New York Mercantile Exchange. It may find support near $1650 levels and resistance near $1730 levels in the near term.
The dollar retreated slightly, with the ICE dollar index, down fractionally from 80.600 in late North American trading Friday.
MCX December gold futures are trading up nearly Rs 60 at Rs 30555 per 10 grams. The counter is expected to face a stiff resistance near Rs 30600 levels today.