Bullion: Gold import by India comes down
09 June 2008 09:48:26
August gold closed up $23.50 at $899.00 and July silver closed up 26 cents at $17.43, both influenced by weaker dollar.
Gold and other precious metals futures rose sharply Friday, propelled by weakness in the U.S. dollar and the latest surge to record highs in crude oil prices, Yet another factor lending support to the precious complex was comments from Israel's deputy prime minister warning that the country would attack Iran if the latter pursues nuclear-weapons programs.
A U.S. Defense Department official said there's no change in status that would indicate Israel is preparing military action against Iran
Gold jumped the most in six months after the U.S. jobless rate had the biggest gain in more than two decades, spurring a drop in the dollar. Silver also rose. The unemployment rate increased to 5.5 percent in May from 5 percent in April, marking the biggest increase since February 1986, the U.S. Labor Department said last Friday
Gold Fields Ltd. workers at Africa's second-biggest gold producer's Beatrix mine have been on strike over ``internal grievances'' for more than 24 hours on last week , leaving 100 miners trapped underground, a labor union said.
Gold imports by India, the world's biggest buyer of bullion, slumped 64 percent in May from a year earlier as high prices cooled demand from jewelers and investors. Purchases totaled 25 metric tons, compared with 69 tons a year ago, India imported 722 tons of bullion in 2007, less than the 1,000 tons estimated by the World Gold Council at the beginning of the year.
U.S.Economy:
The U.S. Labor Department said that the unemployment rate shot up from 5.0% to 5.5% in May, the highest since October of 2004. Non-farm payrolls were down 49,000 in May, not as bas as expected. The September U.S. T-bonds closed higher while the White House tried to blame the jump in the unemployment rate on teenagers looking for work.
The jump in crude oil was too much for the stock market. The September S&P 500 fell 45.90 to 1,361.30, the lowest close in seven weeks.
Currencies update:
Statistics Canada said that the unemployment rate remained at 6.1% in May with a net gain of 8,400 jobs, slightly less than expected. Over the past twelve months, there has been a net gain of 339,000 jobs. The June Canadian dollar was down .06 at 98.09.
The German government reported that industrial production was down .8% in April, weaker than expected.
MCX Gold June - Technical Outlook:
The stochastic indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day EMA. The downside closing price reversal on the daily chart is somewhat negative.
Technical have turned neutral to bullish and market is expected to remain positive above 12645 levels. If sustain above this level can see a rally towards 12771 and 12988 If market sustains below 12428 can see a further fall towards 12302 and 12085
Recommendations–MCX Gold Aug: Buy at 12465 Target 12540 and 12690 Stoploss at 12415
MCX Silver July - Technical Outlook:
The stochastic indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day EMA. The downside closing price reversal on the daily chart is somewhat negative.
Technicals have turned neutral to bullish and market is expected to remain positive above 24883 levels. If sustain above this level can see a rally towards 25117 and 25508 If market sustains below 24492 can see a further fall towards 24258 and 23867
Recommendations-MCX Silver July: Buy at 24570 Target 24880 and 25120 stoploss at 24420
MCXARUN
9994500540
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