Gold tumbles with silver to lowest since 2010, on Dollar strengthened

BT02TC yens notes

Gold and silver fallen in global market, falling to the its lowest level since 2010, as the greenback strengthened after the Bank of Japan suddenly increased stimulus and the Fed of asset purchases terminated this week.

On MCX domestic market Gold and silver have declined sharply. With closer to 2 per cent decline on MCX gold appears close to Rs 26,085. By around 2.5 per cent to decline Silver also has touched down to Rs 35,640. Continues to dollar strengthen in the international market gold had touched the levels below $1170, today. While silver is trading at 4.5 year low.

The Fed being weighed the schedule of rises interest rates and other national central banks to add stimulus to boost their economies. The Bank of Japan said today that it has led the expansion of its program of unprecedented monetary stimulus by 80 trillion yen ($ 726 billion), sending the yen to a minimum of six years against the dollar. Gold yesterday cleared the breakthrough of the year after beating estimates of gross domestic product.

In London Gold for immediate delivery fell 2 percent to $ 1175.38 an ounce, according to Bloomberg. Precious metal hit above $ 1167.49, the lowest since July 2010. Silver crept up 3 percent to $ 16.0009 an ounce, its its lowest level since February 2010, before trading at $ 16,055.

Bullion is moving toward a fall of 4.5 percent this week, the highest since September 2013. The metal is also established for the first monthly loss in a row in 2014.

US gold futures for delivery in December on the Comex in New York decreased 2.1 percent to $ 1,174 an ounce, after stirring $ 1,166.20, the lowest since July 2010. Silver futures for it month delivery decreased as much as 2.8 percent to $ 15.955, the lowest since February 2010.

Actually yesterday showed US GDP figures, which were quite good than expected. The employment situation is improving as well. The dollar has reached the upper level of 1 month. On the other hand, the rupee today strengthened against the dollar, gold and silver prices in domestic markets has had a double pressure.

While, today Indian benchmark 50 share index BSE Sensex rose nearly 2 percent  to a record for a second day after the Bank of Japan’s surprise expanding its massive stimulus program raised hopes for additional foreign inflows, rising blue chip companies such as Larsen and Toubro.

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Gold slides lowest 3-1/2 weeks towards $1,200/oz after upbeat Fed statement

Gold slides lowest 3-1/2 weeks towards $1,200/oz after upbeat Fed statement

Gold prices slipped to $ 1,200 an ounce on Thursday, reaching its lowest level in 3-1 / 2 weeks after the Federal Reserve terminated its bond-buying stimulus programme in an unexpected note of line hard.

Comex gold futures for delivery in December fallen by up to 1.93% to hit a session low of $ 1201.20 a troy ounce, the lowest level since Oct. 6.

Prices partially recovered up to the last trade of $ 1205.20 during the European morning hours, up $ 19.70, or 1.61%.

The US Federal Reserve terminated its program of buying assets on a large scale, known as quantitative easing, in completing its policy meeting on Wednesday, two days, as hoped.

The dollar index, which tracks the performance of the US currency versus a basket of six major rivals, rose to a three-and-a-half-weeks as the market participants took below expectations when the Fed optionally raising rates. While the future of US rates upgraded to show better-than-even possibilities for a rate hike the coming month Sept. Previously, they had stated a rise in October.

Futures contracts denominated in dollars tend fall off when the dollar rises, as it makes commodities more expensive for buyers in other currencies.

That bumpy interest also in gold, which as a non-yielding asset tends to take advantage of ultra-low prices.

The Fed left their commitment to maintain interest rates closer to zero for a “substantial time”, but harder rang in the job market, saying “the under-utilization of labor is falling slowly”.

“We do not say that we’ll create an environment of higher interest rates in the short term, but the signs are there. Gold $ 1200 may hold today, but overall we consider, it will be broken, and we’ll look at that false bottom at $ 1180 again.” 100McxTips bullion experts said.

Gold, which hit a record low of 15-month $1183.46 earlier this month – a level that would had already rebounded in 2013 – slipped 1.3 percent on Wednesday after the Fed statement was freed

The central bank of the United States rejected largely financial market volatility, a slowdown in Europe and a weak outlook for inflation as factors that could limit progress toward its goals of unemployment and inflation.

Decline in Gold prices on the domestic market has increased. Prices in the domestic market has slipped below Rs 26,800. In the international market gold is trading at the lower level of the last 3-1/2 weeks. The sharp decline in silver. In the international market, it has come down to $17. At MCX Silver is trading with a loss of nearly 2 per cent to Rs 38,000.

 

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Gold Prices Holds Near $1230, Ahead of Fed Reserve Outcome

Gold Prices Holds Near $1230, Ahead of Fed Reserve Outcome

Gold futures prices were stabilized near $ 1.230 an ounce on Wednesday, since investors remained cautious ahead of the results of a much anticipated meeting of the Federal Reserve whether or not to hike US interest rates earlier or keep them down for longer.

The Fed concludes its policy meeting two days later on Wednesday that expected to end its bond purchases amid signs of strength in the US economy.

But politicians will likely to reinforce its stated policy of wait longer before elevating interest rates after a volatile month in the financial markets.

On the Comex, US gold futures for December delivery quoted at $ 1,229.00 a troy ounce during early European morning trade hours, down 40 cents, or 0.03%. A day before, prices fell to a two-week high of $ 1222.20, before rallying to close at $ 1229.40, up 10 cents, or 0.01%. Futures were likely to find support at $ 1222.00, the low of October 15 and resistance at $ 1255.60, the high of October 21.

“Before US Fed meeting decision, the trading is extremely sluggish in gold and silver. In domestic and international market, gold remains around yesterday’s level. Gold is not getting much currency support. MCX gold is currently trading around Rs 27,200 with marginal gains of 0.1 per cent. While silver is trading above Rs 38,200 gained 0.2 percent.” said 100McxTips commodity experts.

Hold interest rates low in the United States for a longer period bodes well for non-interest bearing assets such as gold.

The data released Tuesday gives the reason the US central bank to hold off from squeezing monetary policy, with the demands of capital assets made in the United States drops more by eight months in September.

The real estate sector in the US has also retained in great soft part. The S & P / Case-Shiller composite index of housing prices in 20 metro areas gained 5.6 percent in August compared to last year, the slowest since November 2012 yearly increase.

The dollar index, which tracks the performance of the US currency versus a basket of six major rivals, remained stable at 85.44.

The dollar weakened against most major currencies on Tuesday after a separate report showed that US orders for manufactured durable goods were unexpectedly much lower for second consecutive month in September.

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Gold Rebounded 2-Week Low, Investors Focus on Federal Reserve Meeting

Gold Rebounded 2-Week Low, Investors Focus on Federal Reserve Meeting

Gold prices in early trading in Asia on Tuesday recovered from a low of 2 weeks, as investors weigh increase in physical demand ahead of policymakers at the Federal Reserve begins a two-day meeting wherein it is hoped terminate a bond purchase program.

Comex gold futures for delivery in December quoted at $ 1,225.80 a troy ounce, down 0.06%, after hitting a session low during the night of $ 1227.50 and off a high of $ 1232.00. During the night the prices of gold drop earlier because investors prevent the yellow metal sprang to the sidelines ahead of Fed declaration on monetary policy on Wednesday.

Spot Gold for prompt delivery rallied as much as 0.5 percent to $ 1232.40 an ounce and was trading at $ 1231.32 in Singapore. The metal fell earlier to $ 1222.62, the lowest price since October 15, and has retreated 1.8 percent in the past four days in the longest losing run since August.

“Pressure is released in the domestic market on gold. Business is extremely sluggish in the international market. Indeed, a crucial meeting of FOMC going to start today’s,  in which bond-buying program can be entirely eradicated. In the US, interest rates may be somewhat clearer picture. With slight weakness of 0.1 per cent on MCX gold is trading below Rs 27,200. While silver is trading up 0.2 per cent to Rs 38,200.”  said 100McxTips.

Gold fell 6.2 percent last month as the dollar gained and shares in exchange-traded products was contracted. Fed policy makers are evaluating the schedule of rate hikes after yesterday’s data showed that the number of contracts to buy existing homes increased by less than anticipated in September. Demand in China and India, the biggest shoppers usually accelerates in the fourth quarter during the festive period and wedding season.

Holdings in the SPDR Gold Trust remained flat yesterday after shrinking to a minimum of six years on October 24.

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Gold failed to holds decline, as stronger equities hurt safe-haven appeal

Gold failed to holds decline, as stronger equities hurt safe-haven appeal

Gold prices in early trade on Monday failed to holds decline and make any recovery from three straight days of losses as stronger global economic data and higher equities curbed the metal’s safe-haven appeal.

Asian shares jumped, taking heart of upbeat earnings and economic data from the United States that eased fears of global growth and acute hazard appetite. The results of stress tests on European banks at the weekend received quietly in the market.

Last week, US gold futures modest rose on the Friday but still registered a weekly loss as ongoing expectations for a rate hike earlier than expected in the US and a stronger dollar overall.

Comex gold futures for delivery in December quoted at $ 1,230.20 a troy ounce, down 0.06%, after it settled last week at $ 1231.80 a troy ounce.  Spot gold remained stable at $ 1,230.86 an ounce, but is not far away from a minimum of one week of $ 1226.17 hit last week.

Decline in gold and silver has increased in the domestic market. Gold is down to Rs 27,200, while the silver is seen around Rs 38,000.  As the effect of international market, domestic prices has been declining.” said 100McxTips Commodity Experts.

A recent batch of strong as hopes that US economic data pointed out that the economic recovery maintains momentum and underscored speculation that the US Federal Reserve may raise rates earlier than expected.

Rate hikes likely to damping at gold prices, as it increases the relative cost of holding on to the metal.

The metal’s losses come after global equities posted their biggest weekly percentage gain since July 2013 last week, while the US dollar also strengthened.

A stronger US dollar typically weighs on gold as it absorbs the metal’s appeal as an alternative asset and causes dollar-priced commodities more expensive for holders of other currencies.

Bullion Traders were also watching closely the positions of investors in gold funds. SPDR Gold Trust said its holdings fell 0.6 percent to 745.39 tonnes on the Friday.

The hedge funds and money managers raised their bullish bets on futures and option on gold for the second consecutive week, as the price of gold was recovered in the week until 21st October, the Commodity Futures Trading Commission said on Friday.

 

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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.

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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

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