Bullion Update

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

GoldGold breached $920 per ounce during the session, considered to be a strong resistance level ,as a weaker dollar and a wider U. S. trade gap prompted fund buying. It ended the day above $920 at $924.7. Silver edged higher gaining $0.326 and ending the day at $14.204 on COMEX.

The dollar sank to a four-month low against the euro as growing optimism about the global economy boosted investors' risk appetite and curbed demand for the U. S. currency as a safe haven.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said holdings stood at 1,104.09 tonnes as of May 12, unchanged since May 6.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

goldGold was steady on Tuesday (0830 IST) after it pared a 3 percent gain made last week on a rebound in the dollar, while declines in global stock markets underpinned its allure as a safehaven asset.

Gold was at $913.90 an ounce, up 0.1 percent from New York's notional close of $912.60. On Monday it fell about 0.4 percent.

The dollar and yen held broad gains made the previous day as investors continued to take profits on last week's rally in riskier assets. On Monday, the dollar rebounded from a fourmonth low against a basket of currencies (Dollar Index), making dollar-priced bullion pricier for non-U. S. investors.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

goldGold bounced to $916.5 per ounce on Monday (0830 IST) as its safe-haven allure waned on bets that global economic pain could be easing.

Gold settled down 60 cents at $914.90 an ounce on Comex on Friday after U. S. non-farm payrolls fell less than expected in April and investors took signs of an economic recovery as a reason to sell bullion held as a safe store of value.

However, the losses were limited as the dollar slipped to a six-week low against the euro and concerns that an economic recovery could spark inflation supported buying of the metal as a hedge against rising prices.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

goldGold bounced to $910 per ounce on Friday (0830 IST) but was off a five-week high of $925.15 marked on the previous day, as its safe-haven allure waned on bets that global economic pain could be easing.

Spot gold was quoted $913.00 GMT, up 0.4 percent from New York's notional close of $909.05.

The dollar and the yen remained steady on Friday (0830 IST), after stress test results show none of the 19 U. S. banks examined faces insolvency, but some of the biggest need to raise more capital.

Silver climbed above $14 an ounce when the market opened on Thursday as uncertainties ahead of a stress test on U. S. banks boosted the safe-haven demand.

Capital inflows by foreign funds help Indian rupee rises to 2-½ month high

Indian EconomyIncreased capital inflows by foreign funds in the domestic bourses helped the Indian rupee appreciate 24 paise against the dollar on Thursday, thereby marking a two-and-a-half month high.

The Interbank Foreign Exchange (Forex) market saw the domestic currency being quoted 49.38, as against its earlier close of 49.61/62. As per the Forex dealers, fresh capital inflows in Indian share markets and the weakened dollar propped up the rise in the rupee.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

goldGold rose on Wednesday as stress tests on U. S. banks underscored lingering uncertainties in the financial markets, bolstering the metal's safe-haven appeal. Gold traded higher in spite of a Wall Street rally ahead of Thursday's release of results of government stress tests on 19 large U. S. banks.

Spot gold was quoted at $909.85 an ounce, up 0.7% from New York's notional close. The world's largest gold-backed exchangetraded fund, the SPDR Gold Trust’s , holdings fell to 1,104.09 tonnes as of May 6, down 0.36 tonnes, or 0.03 percent, from the previous day.

Monthly Outlook for GOLD: Nirmal Bang

Monthly Outlook for GOLD: Nirmal BangThe major driver of gold in the first quarter of 2009 was the ETF's demand, which remained subdued and we saw redemptions taking place from the largest gold ETF i. e., SPDR Gold Trust. After Akshaya Tritiya, the demand from the Indian gold market was seen waning and stability in financial market is likely to weigh on gold prices.

We recommend selling of gold on rallies; on Comex we feel it might not be able to breach the crucial resistance of $918/oz. The outlook for the fortnight is to sell gold on rallies with a downside target of $865/oz and Rs 14150/10gm.

Currency Report for the month of April 2009: Nirmal Bang

Currency Report for the month of April 2009: Nirmal BangThe rupee rose by 0.5%, on account of strong flow on overseas portfolio investments in surging equity markets. Foreign investors bought $1.3 billion more Indian shares than they sold in April, the biggest monthly purchases since December 2007 according to Data from SEBI. The FII flows into debt market stood at $490 million in April. US dollar could further turn weak, reflecting the health of the US economy, which is mired by recession and a huge deficit, against other global currencies. This could give further strength to rupee.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

goldGold declined to trade below $900/oz on Wednesday (0830 IST), having risen to its strongest in a week the previous day, as the dollar gained against the euro, with softer oil prices also adding to the selling pressure of the gold.

Spot gold was quoted at $896.80 /oz, up $1.35 from New York's notional close. The dollar gained against the euro aided by Fed Chief Ben Bernanke’s statements that the U. S. economic contraction may be easing and reports of services industries shrink at a slower pace in April.

Gold was not able to breach the crucial resistance of $918. We recommend selling gold on rallies during the day.

WGC says gold sales on Akshaya Tritiya dropped 8% to 45 tonnes

GoldAccording to the World Gold Council’s (WCG) report related to gold sales on Akshaya Tritiya festival on April 27 - an auspicious day according to Hindu calendar – the sales dropped by 8 percent this year as against the year before figures. But, speaking in value terms, the demand for gold increased by 14 percent to Rs 7,280 crore vis-à-vis its 6,359 crore value last year.

Nonetheless, the 45 tonnes of gold sold on the day, in comparison to 48.9 tonnes sold last year, surpassed the expectations of most jewelers and trade bodies, even though the Rs 14,700 per 10 gram gold price this year was 24.57 percent more than last year’s price on this day.  

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

goldGold was quoted at $889.70 an ounce, down by more than 1%, the biggest in more than two weeks. In the Indian markets, gold went down by Rs 195 to close at 14515 continuing the sluggish demand post Akshay Tritiya and ahead of a long weekend.

The dollar fell against euro as much as 0.9% as the risk tolerance drove the demand of greenback southwards and the US Economic data of home prices came out to be positive. But the downside may be limited because of the swine flu, which may see a safe haven buying.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

GoldGold rose to a 3 week high of $918.25 on Monday due to rise in risk aversion amidst fears of swine flu in North America. In the Indian markets, gold rose by Rs 140 to regain the 15,000 mark fast tracked by heavy buying by the retail investors on 'Akshay Tritiya'.

The world's largest gold-backed exchangetraded fund, the SPDR Gold Trust, said its holdings remained at 1,104.45 tonnes as of April 28, unchanged from the previous day. Its holdings hit a record 1,127.68 tonnes on April 9, and remained at that level for a week.

Bullion Update and Market Outlook: Nirmal Bang

goldGold rallied on Friday after China said it has added over 450 tonnes to its foreign reserves over the past six years. The reserves have risen to 1054 tonnes from 600 tonnes in 2003. This places China at the fifth spot amongst the gold-holding nations. Analysts expect China to buy more gold to match its holding with other central banks. This creates a very positive sentiment towards gold.

Today is Akshaya Tritya festival, an auspicious time for gold buying in India which continues to lend support.

SBI Mutual Funds celebrates Akshaya Thrithiya week

SBI Mutual FundsWith Akshaya Thrithiya - an auspicious day by the Hindu calendar – falling on April 27, gold suppliers are hoping for a turnaround for the better so far as demand for gold is concerned! Since the gold prices in India having more or less hovered around the Rs 14,000-15,000 per 10-gram range for some time, the jewellery sales have plunged substantially. In fact, there was hardly any import of the yellow metal during February and March.  

Bullion Update and Market Outlook: Nirmal Bang

GoldGold inched up on Friday, keeping gains above $900 after rallying to a three-week high the previous day, while holdings of the world's biggest gold-backed exchange-traded fund dipped further away from a record high. Prices were supported as physical demand from India, the world's largest consumer, has picked up ahead of the Akshaya Tritya festival on April 27, an auspicious time for gold buying.

Holdings at the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust dropped to 1,104.45 tonnes as of April 23, down 1.53 tonnes or

Jewellery exports may revive in FY10

Jewellery exports may revive in FY10Country's jewellery export witnessed modest growth of 0.45% to $21.11 billion in FY09 despite low demand from traditional markets of US and European countries. The sector performed well in first half of the fiscal. However, exports dipped by 18.9% during the second half under the impact of global slowdown and higher gold prices.

Bullion Update and Market Outlook: Nirmal Bang

GoldGold nudged up on Thursday, adding to gains from the previous session on concern about the global economy and the financial sector, as well as physical buying in India, the world's largest consumer. But the market lacked momentum to push towards the key $900 mark, weighed down by stalling investment in the world's largest goldbacked exchange-traded fund.

Buying from India ahead of the Akshaya Tritya festival on April 27, an auspicious time for gold buying, continues to lend support. Also, while some risk appetite has returned in recent weeks with stocks recovering from their lows, investor preference for gold as a safe-haven asset remained intact.

Bullion Update and Market Outlook: Nirmal Bang

goldGold prices faced resistance at psychological level of $900/Oz. Gold prices fell relinquishing early gains as global share prices arrested theirdecline and overshadowed credit jitters that had previously heightened bullion's appeal.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said holdings remained unchanged at 1,105.98 tonnes as of April 21 after investor outflows early this week reached their biggest since early September.

Holdings hit a record 1,127.68 tonnes on April 9. Recovery in physical buying by India, the world's largest importer, with MMTC Ltd saying it would import

Bullion Update and Market Outlook: Nirmal Bang

goldAfter a steep decline in price during last week, demand from India was seen improving due to Akshaya Tritya festival and U. S. stocks broadly dropped more than 3 percent, stirred by worries that problems would persist for the struggling banking sector which led to sharp upside in precious metals. Every time risk aversion has risen, we have seen precious metals moving up.

Gold May Trade On A Bearish Note

Gold May Trade On A Bearish NoteGold remained to trade on a weak note, as it slightly breached below the weekly swing low.

The yellow metal was not capable to break the neckline of head and shoulders model at $900 and fell down, hinting that the first conservative target of $845 is on the right track.

The weekly momentum oscillator maintains with a downbeat crossover of the moving average and is close to give a crosswalk under the zero line.

The oscillator on the every day charts is dealing below the zero line. It has yet again given a bearish crossover of the moving average, in support of the bearish preconception.

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