Gold Hits 6-week High as Indian Diwali Seen Spurring Purchases, China Growth Worry

Gold Hits 6-week High as Indian Diwali Seen Spurring Purchases, China Growth Worry

The prices of gold held close to the highest within six weeks on signs of growing demand in India driven by festival of Diwali and the wedding season. Gold rallied above $ 1,250 an ounce on Tuesday, boosted by earnings from commodities and broadly based worries about an economic downturn China.

Bullion for immediate delivery gains as much as 0.3 percent to $ 1251.90 an ounce and was at $ 1248.64 in Singapore. And gold futures for December delivery dropped 0.2 percent to $ 1248.70 an ounce on the Commodity Exchange in New York.

A sharp outflow in exchange-traded funds backed by physical gold and average demand for Asia, however, point to a vulnerable outlook of bullion price, analysts said.

The yellow metal was lifted in the face of a stronger US dollar and on Wall Street rally after data have shown that home resales rushed to a maximum of one year in September.

“Diwali, the festival of lights held in the country for more than 800 millions of Indians tomorrow morning, is perceived as a good time to purchasing gold. A researcher CPM Group considers that the festival generates approximately a fifth of the country’s annual purchases. The imports of India fired on probably 95 metric tonnes last 15 tonnes to 20 tonnes the previous year”, All India Gems & Jewellery Trade Federation considers.

China economy increased at its slowest pace since the global financial crisis in the in Sept. quarter and hazards foul its official target for the first time in 15 years, adding to worries of the worldsecond biggest economy is quickly becoming a drag on global growth.

But, the general sentiment towards gold remained cautious. The holdings in the SPDR Gold Trust, backed exchange-traded on the world’s largest gold fund were down 1.18 percent to 751.97 tonnes on the Monday – the higher daily percentage falling in a year.

There is a weakness in the domestic market, MCX gold is trading below Rs 27,500 with 0.2 percent decline. While silver slipped 0.3 per cent to Rs 38,640.

For latest commodity market tips, MCX tips, news & updates  with 100McxTips Commodity Advisory, follow us on Twitter and Like on Facebook.  And to contact the reporter on this story email at support@100mcxtips.com or Call: +91-761-4012307

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Why Indian Buying Gold on Dhanteras?

Why Indian Buying Gold on Dhanteras?

Many Indians regard Dhanteras as a propitious occasion for buying gold. Many jewelers will have been launched promotional plans to lure buyers of gold, while stock markets have been expanded trading hours for trading gold on Tuesday.

For Indians, gold is not only a product but a promising metal buying for different purposes at different times. Before Diwali and Dhanteras, on Monday, gold and silver prices have accelerated. Here is a cheat-sheet of 10 points to understand how the prices of gold could be affected:

  1. Analysts say that historically October has been seasonally a good month to buy gold. Vikas Vaid, product head of commodity and currency of Prabhudas Lilladher Group, said it has been observed that historically gold prices bottomed out in October and November is a strong month for the yellow metal in terms of prices.
  2. Domestic gold prices are hovering around Rs. 27,500 levels per 10 gm, down nearly 17 per cent from its highs of over Rs. 33,000. Domestic gold prices have slipped in tandem with a drop in international gold prices. Mr Vaid said buyers could take advantage of the current softness in gold prices to buy some yellow metal in their portfolio. An investor should have 5-10 per cent of his portfolio invested in gold, he said.
  3. Since India imports most of its gold requirement, international prices are a key determinant of domestic gold prices. In international markets, gold was trading at around 1-month high levels of $1,236 an ounce. Mr Vaid expects gold prices to remain supported due to its appeal as a safe-haven asset class as there are concerns about global growth, Ebola, Middle East crisis etc.
  4. The value of dollar is also a key determinant of commodity prices like gold and oil, which are denominated in the greenback. The dollar index, which measures the currency’s value against a basket of major global currencies, had recently hit a four-year high on the back of optimism about the US economy. The dollar’s rise further could negatively impact international gold prices. The rupee’s value against the dollar also is determinant of gold’s price in India.
  5. However, there are also expectations in some quarters that the US Federal Reserve may delay a rate rise due to uncertainties in global growth, particularly in the Eurozone. An easy-money policy from the US Federal Reserve may also keep the global gold prices supported. James Bullard, who heads the St. Louis Fed, recently suggested that the US Fed could stick with its stimulus programme for a few more months.
  6. There has been speculation that the US central bank could bring its so-called quantitative easing of monetary policy, or QE, to an end at its next meeting on October 28-29.
  7. Gold imports into India attract import duty of 10 per cent. There are expectations among traders and jewellers that the Indian government could lower the import duty. A lowering in import duty could bring down the domestic prices of gold. But the government is likely to remain cautious as a rise in gold imports resulting in trade deficit rising sharply to 18-month high of $14.25 billion in September. Gold is India’s second-biggest expense on imports after oil and a spike in gold imports affects India’s current account deficit. Trade Minister Nirmala Sitharaman had said in September there was no immediate plan to cut the gold import duty.
  8. Recently, the government deregulated diesel prices taking advantage of a sharp fall in global oil prices. Mr Vaid of Prabhudas Lilladher Group says that global gold prices would also be a key factor in the government’s import duty policy.
  9. National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) have decided to extend the trading session for gold exchange traded funds on Tuesday till 7 pm.
  10. Besides, both the bourses have decided to waive off the transactions charges for all trades in gold ETF securities on that day. Gold ETFs track the precious metal’s prices and each unit of these securities is generally equivalent to one gram of gold. Returns from Gold ETFs are linked to the domestic price of physical gold but spare the investors from the trouble of buying and keeping the yellow metal in physical form.

Story published on: http://profit.ndtv.com/news/commodities/article-buying-gold-on-dhanteras-10-things-to-know-681933

For latest commodity market tips, MCX tips, news & updates  with 100McxTips Commodity Advisory, follow us on Twitter and Like on Facebook.  And to contact the reporter on this story email at support@100mcxtips.com or Call: +91-761-4012307

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Would be shining gold on Diwali: 100McxTips experts view

Would be shining gold on Diwali: 100McxTips experts view

Diwali, the festival of light, but this way Goddess Lakshmi is worshiped on this day. Goddess Lakshmi, which is a symbol of wealth and prosperity. In this matter, this is the motto of 100McxTips that, You’ll get more money by premature and fate.

Do changing economic environment shine your luck by investing in gold, or prosperity will come from investing in silver, let us know here.

Last Diwali to this Diwali gold declined by 9 per cent. At last Diwali, gold prices were at Rs 29 870, which is now down to Rs 27,000. While last Diwali to this Diwali silver declined by 20 per cent. The price of silver was at Rs 4860o on the time of last Diwali, which is now down to Rs 39 200.

In addition to the spot market you can invest in gold via futures market .

At futures market, Gold and Silver have come under pressure. After recovery of the rupee against the dollar in the domestic market in gold has increased pressure. With 0.5 per cent decline on MCX gold is trading at Rs 27330. While silver has also by 0.5%  break down to Rs 38,700.

In addition to investing in gold ETFs have the option. Follow path to invest in silver spot and futures markets.

Indeed, the dollar rally have pressure on gold prices in the international market, while the domestic market led to weaker rupee not depreciate much than gold. By 10 per cent import duty and engage the premium on spot price, gold have came under pressure .

Meanwhile, silver prices in the international market have at 4-year low, which resulted in the domestic market price of silver have dropped 20 per cent this year. As well as industrial demand for silver has also shown an impact on prices.

Bullion experts view:

According to, Mumbai’s famous jewelers and GJF director Ashok Meenawala, “Just are not buying gold for investment purposes only. That is why gold has traditionally shopping list is long of those.” Ashok Meenawala believe that the gold price at current levels seems to be quite attractive.

The new associate director of Angel Commodities Mathur said, “International market started to cut interest rates in the case, the US dollar will be get the strength trend. The strength of the dollar push gold tumbled as well. So the next gold is showing signs of a decline in the commodity market and investors will have the opportunity to buy gold.”

For latest commodity market tips, MCX tips, news & updates  with 100McxTips Commodity Advisory, follow us on Twitter and Like on Facebook.  And to contact the reporter on this story email at support@100mcxtips.com or Call: +91-761-4012307

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Gold traded five-week high after soft US data added to signs a global slowdown

Gold traded five-week high after soft US data added to signs a global slowdown

Gold traded over 1 percent to five-week high on Wednesday after soft US data to aggregate estimates for signs of a global slowdown may hurt the US recovery by increasing the metal’s appeal as an alternative asset.

Meanwhile, the rupee has weakened against the dollar. Today, at the domestic market softening in gold and silver, but comaks gold remains at the high of 1 month.

Gold futures for prompt delivery quoted at $ 1240.37 an ounce in Singapore from $ 1242.02 yesterday, as prices rose to $ 1,249.75, the highest since Sept. 11. While US Gold futures December delivery decreased 0.3 percent to $1,240.90 an ounce on the Comex.

Holdings in the SPDR Gold Trust, fell yesterday to 759.14 metric tons, the least since December 2008.

A recovery on the dollar had prevented the gold to gain traction after it rallied last week from their lowest level since mid 2013. The fall of the dollar on Wednesday helped push gold back to five weeks high.

The dollar touched a session low against the Japanese yen, the euro and the Swiss franc after the September data showed retail sales fell and producer prices in the US dropped for the first time in more than a year, a signal potentially concern for the economy.

European stock markets also extended losses after the data, with the index reached its lowest level since early February. Stocks on Wall Street opened lower.

Gold has struggled for direction at a moment of increasing concerns about the health of the world economy, which has hurt the stock markets. Economic data from Europe has remained weak and worse expected reading of inflation in China has been added to the gloom.

“Gold rally has been a combination of a flight to safety and shorts being squeezed. And the dollar still the key driver of gold. The big wave of selling to other markets may cause some people to take profits on their positions gold to cover margin calls elsewhere. ” said 100McxTips Commodity Experts.

At Indian domestic market, currently with 0.7 per cent gains MCX gold is trading above Rs 27 400. While, with 0.5 per cent jump silver, there is around Rs 39,000.

Gold had some support from the physical market. Gold imports by India, the world’s second largest consumer of the metal, nearly doubled in September from August to $ 3.75 billion, ahead of Wedding & Festival season in the country.

For latest commodity market tips, MCX tips, news & updates  with 100McxTips Commodity Advisory, follow us on Twitter and Like on Facebook.  And to contact the reporter on this story email at support@100mcxtips.com or Call: +91-761-4012307

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Gold holds near 4-week high as investors eyed the weak dollar

Gold holds near 4-week high as investors eyed the weak dollar

Gold retained overnight gains in Asia on Tuesday to trade near its highest in four weeks, but with a weak tone as investors eyed the dollar.  MCX gold in the domestic market is trading around the upper level of a month. Although pressure from upper level has begun. There is a stronger bat rupee against the dollar today.

Also a massive sell in the stock markets was supported exchange-traded funds in gold (ETF) that appeal to investors for the first time within a month after the exit of heavy outflows.

In Comex gold futures for delivery in December quoted at $ 1,236.10 a troy ounce, up 0.06%, after hitting a intra session low over night of $ 1223.60 and a high of $ 1,238.00.  Spot Gold for prompt delivery was bid at $ 1,234.55 an ounce in Singapore from $ 1,235.87 yesterday, when it rose to $ 1,237.86, the highest since September

Gold and the dollar tend to trade vice versa to each other.

Gold rose as the dollar fell on views the Federal Reserve will keep interest rates low due to a faltering global economy and hiking interest rates in 2015.

Higher rates have driven the dollar, but gold’s appeal dented non-interest bearing. Gold registered its best week in nearly four months last week, when the dollar fell after 12-week winning streak.

In the domestic market at MCX gold is nearly 0.5 per cent growth, and it is trading around Rs 27090. With 0.7 per cent growth, while silver is trading at Rs 38600.

For latest commodity market tips, MCX tips, news & updates  with 100McxTips Commodity Advisory, follow us on Twitter and Like on Facebook.  And to contact the reporter on this story email at support@100mcxtips.com or Call: +91-761-4012307

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Gold prices advances to four-week high on uncertainty over next Fed move

Gold prices advances to four-week high on uncertainty over next Fed move

Gold advances to four weeks on Monday while investors looked for the precious metal in the uncertainty about the pace and timing of any rise in interest rates from the Federal Reserve next year. And the world economic outlook sent investors scuttling into bullion as a safe haven amid a wave of selling in equities and the dollar.

Gold for immediate delivery rose up to 1 per cent to $ 1,235.01 an ounce, the highest price since Sept. 17, and was at $ 1233.98 in Singapore.

On US comex exchange, gold futures for December delivery quoted at $ 1,230.30 a troy ounce, up 0.41%, after hitting a session low overnight of $ 1217.70 and a maximum of $ 1,225.80.

Markets in Japan are to remain closed for a national holiday. The trade balance of China is foreseen with no time release available with exports up 11.8% observed, imports down 2.7% and a trade surplus of $ 41 billion seen.

Hedge funds reduced bullish gold bets just prior to gold prices surge the most since June on concern that global economic growth is weakening.

Holdings in the SPDR Gold Trust, fell to 759.44 tonnes on 10 October, the lowest since December 2008.

Gold remains bullish last week, and with the surge of 0.75 per cent Comex gold has gone beyond $ 1230. Gold will be twice as influenced by both the equity markets and the dollar during the week.  said 100 Mcx Tips.

Fed Vice Chairman Stanley Fischer acknowledged Saturday that the Fed will have global economic and financial impact when it begins to raise rates of interest, but said the clear communication must avoid any major surprises in the global markets.

And Fischer said the Fed will delay rate increases until there is clear evidence that the United States economy has “progressed enough” to advance their goals of employment and inflation.

In the domestic market with a gain of 0.75 per cent on MCX gold is trading at Rs 27 165. While silver is also been robust at 1 per cent and is trading at Rs 38 905.

For latest commodity market tips, MCX tips, news & updates  with 100McxTips Commodity Advisory, follow us on Twitter and Like on Facebook.  And to contact the reporter on this story email at support@100mcxtips.com or Call: +91-761-4012307

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Gold rises on safe-haven bids as IMF to cut global growth estimates

Gold rises on safe-haven bids as IMF to cut global growth estimates

Gold extended gains for a third session on Wednesday as IMF to cut global growth estimates. Investors towards safe investments have outperformed the market.  In the international market, gold has risen upwards of $1210. With the decline of silver is trading above $17.

Bullion for immediate futures delivery rose as high 0.5 percent to $ 1,214.85 an ounce and was bid at $ 1213.75 in Singapore. Gold December futures delivery quoted at $ 1.214 an ounce on the Comex in New York from $ 1212.40 yesterday.

Holdings in the SPDR Gold Trust remained flat for a third day yesterday at 767.47 metric tons, the lowest since December 2008.

The IMF cut its worldwide economic growth estimates for the third time this year on Tuesday, warning of a weaker countries of the euro zone core, Japan and big emerging markets such as Brazil area growth.

The Washington-based lender cut its expectations for global growth to 3.3 percent this year and 3.8 percent next year. In July, a 3.4 percent growth in 2014 and 4 percent in 2015 expected.

Forecast cuts hurt world stocks dipped sharply, yesterday.

Gold, often seen as an investments alternative to stocks, cattle conjunction with other safe-haven assets such as the Japanese yen and the US Treasuries. A weaker US dollar also helped.

Bullion investors were awaiting for the return of China, after a national day holiday weekends. Robust shopping from the world’s largest consumer of the metal could boost prices.

India and China’s robust growth in consumer demand would only benefit the demand for physical gold. Demand in India is established to pick prior to the festival of Diwali, on October 23.  said 100 Mcx Tips.

To firm up of international market, domestic prices have been getting support. With nearly 0.5 per cent gains on MCX gold has risen above Rs 26,900. While with 0.5 per cent jump, silver is over Rs 38500.

For latest commodity market tips, MCX tips, news & updates  with 100McxTips Commodity Advisory, follow us on Twitter and Like on Facebook.  And to contact the reporter on this story email at support@100mcxtips.com or Call: +91-761-4012307

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