GOLD; 10th Largest Stake in World: INDIA

NEW DELHI: The Central government today said India has become the 10th largest holder of gold in the world after it purchased 200 tonnes of the precious metal from the International Monetary Fund (IMF) last year.

Acc. to the World Gold Council, India is ranking 13th in the world in terms of official gold holding in March 2008 and March 2009, Minister of State for Finance 'Namo Narain Meena' said in a written reply to the Lok Sabha.
In November 2009, the RBI purchased 200 tonnes of gold from IMF at an estimated cost of USD 6.7 billion.

Meena said "With the purchase of 200 metric tonnes of gold by the Reserve Bank of India from the International Monetary Fund under the IMF's limited gold sales programme, India's rank had increased to 10th position in March 2010, with official gold holding of 557.6 metric tonnes" .

Gold prices close higher on Wednesday despite easing of safe-haven demand

Gold prices ended higher on Wednesday but off their one month peak touched in last session. The yellow metal gave back gains after Standard & Poor's cut its credit rating on Spain as safe-haven demand eased due to steadier global markets.

Gold futures for June delivery settled up $9.60 at $1,171.80 after trading in a range of $1,161 and $1,175.30 per ounce on COMEX division of New York Mercantile Exchange. Spot gold last traded at $1,170.85 compared with $1,168.03 late in New York’s previous session.

BULLION MARKET Rates for today

Cities Gold (10 gm) Silver (1 kg)

Chennai 16815 28465

Mumbai 16740 28295

Delhi 16990 28150

Kolkatta 17020 28000

Gold decreases by Rs 30 in Bullion Market

Gold prices on Tuesday declined by Rs 30 to Rs 16,990 per 10 gram in the bullion market here on reduced offtake amid weakening global trend.

Fall in demand due to off marriage and festival season influenced the trading sentiment, marketmen said.

Gold in the overseas markets, which normally set the price trend on the domestic front here, fell by USD 4.50 dollar to 1,153 dollar an ounce.

Standard gold and ornaments fell by Rs 30 each to Rs 16,990 and Rs 16,840 per ten gram respectively. Sovereign remained flat at Rs 14,050 per piece of eight gram.

Spot gold prices touched a high of $1157/oz on friday.

MARKET RECAP

Gold prices came under pressure in the last week as the dollar strengthened in the earlier trading sessions. But the yellow metal prices wiped out major losses towards the end of the week as the dollar declined, paving way for gold prices to conquer the lost territory.

OUTLOOK

We expect the US dollar to weaken today as risk appetite in the financial markets will lead to less demand for the low-yielding currency. This will help the gold prices to gain as the yellow metal usually trades inversely to the greenback.

Gold prices could also rise in the coming days on expectation that signs of inflation will revive demand for the metal as a store of value. India the world’s largest buyer of gold jewelry faces inflation of almost 15% and consumer prices in the UK too climbed 3.4% in March. Accommodative policy by the US government is also raising risk of inflation and the yellow metal is attracting demand as a safe-haven.

Latest update on top of metals

(Prices: gold rupees/10 gm, silver rupees/1 kg). expiry last change open high low gold Aug 5 14,465 -19 14,507 14,530 14,451 silver Sep 5 21,598 -26 21,650 21,677 21,543 3PM.

--Gold price down as rupee strengthens slightly vs dollar --Strong dollar reduces import cost and depresses prices --Crude oil $66.40/bbl, dn 33 cents in NYMEX electronic trade --Gold $932.50/oz, up $1.50 in NYMEX electronic trade 2PM Steady (gold 14,486, dn 2; silver 21,594, dn 30).

Commodity Online

Latest update on top. (Prices: gold rupees/10 gm, silver rupees/1 kg). expiry last change open high low gold Aug 5 14,465 -19 14,507 14,530 14,451 silver Sep 5 21,598 -26 21,650 21,677 21,543 3PM.

--Gold price down as rupee strengthens slightly vs dollar --Strong dollar reduces import cost and depresses prices --Gold $932.50/oz, up $1.50 in NYMEX electronic trade 2PM Steady (gold 14,486, dn 2; silver 21,594, dn 30).

Bullion futures steady today on lack of global cues as U.S. market closed
--Physical demand remains feeble as prices still too high, says analyst --Crude oil $66.74/bbl, up 1 cent in NYMEX electronic trade --Gold $932.60/oz, up $1.60 in NYMEX electronic trade 1PM Down (gold 14,483, dn 1; silver 21,580, dn 44).

Gold and Silver futures settled with gains on MCX

Mumbai - Gold futures settled higher on Multi Commodity Exchange on short covering from lower on Saturday. Gold, silver futures traded higher on Friday. In the international market gold traded un changed at USD1156.90/oz.

Spot gold is trading steady Friday in Europe as investors sit out of the market amid Greece uncertainty and as euro weakness weighs. The situation in Greece seems to be deteriorating and Thursday, Moody's Investors Service downgraded Greece's debt. A Greek government official said Friday that the government is expected to formally request financial support.

MCX's most active gold June contract opened Rs.12 higher at Rs.16,785/10gm and moved between Rs.16,785-Rs.16,825/10gm. The contract settled Rs.14 up at Rs.16,787/10gm. June contract volumes clocked 2804 lots.

MCX gold mini, the most active May contract opened up Rs.16 at Rs.16,698/10gm. It fluctuated between Rs.16,698-16,730/10gm. May contract settled up Rs.19 at Rs.16,701/10gm. Total volumes in May contract clocked 2409 lots.

Benchmark silver May contract opened Rs.21 up at Rs.27,629/kg. The contract fluctuated between Rs.27,629-Rs.27,728/kg. Silver May contract settled up Rs.92 at Rs.27,700/kg. Total volumes clocked 2083 lots.

MCX silver mini April futures opened up Rs.33 at Rs.27,636/kg and moved between Rs.27,636-Rs.27,723/kg. Mini silver April futures settled up Rs.99 at Rs.27,698/kg. Total volumes recorded 4204 lots.

Today's Commodity Prices

Commodity MCX

Aluminium - 101.5

Copper - 341.4

Crude Oil - 3720

Gold - 16618

Lead - 99.8

Nickel - 1187

Silver - 27316

Zinc - 105.05

Major Commodity Exchanges in the World :

• -Kansas City Board of Trade.




• -New York Mercantile Exchange.



• -Chicago Board of Trade.



• -London Metal Exchange.


• -Dalian Commodity Exchange.


• -Multi Commodity Exchange.


• -Kuala Lumpur Exchange

Gold booms in Asia; Platinum Resists

Singapore - Gold and other precious metals rose in Asia Thursday, with confidence seemingly restored after last Friday's dip.

Platinum took over from palladium as precious metals leader, advancing 1% to its highest level since August 2008 before falling back at $1,750 trendline resistance.

Mitsui noted that China's imports of platinum came in at 11.75 tons in March, up 230% on year, while during the first three months of 2010, a total of 23.85 tons were imported, up 136% on the same period last year, with much of it to supply the jewelry sector as well as auto-catalysts.
"If the auto industry returns to the market in force this year, the fundamental picture for platinum looks very strong," said the bank.

Gold was also edging higher, although the market's positioning looks very long, said a Hong Kong-based trader.

"No one is short. The funds are in and they are talking it higher, and that means it could be a sell," he said.

He identified $1,150 as key resistance today, with a successful breach of this likely to attract more momentum buying.

Gold is also looking strong against the crosses, getting support from the ongoing Greece fiscal crisis, which has continued to attract safe haven buying to the yellow metal while hurting the euro.

At 0635 GMT, spot gold was at $1,146.50/oz, up 30 cents since the New York close, while in euro terms, it was at EUR856.27, up 63 cents.

MCX / Top gainers

Gold-Oct'10 16851.00 23.00
Gold-Aug'10 16734.00 13.00
Mentha oil-May'10 692.30 12.40
Crude Oil-Jun'10 3827.00 12.00
Gold-Jun'10 16639.00 12.00
Mentha oil-Apr'10 729.20 10.60

Gold futures elevates globally

Most Precious metal i.e. Gold prices rose by Rs 34 to Rs 16,647 per ten grams in futures trading today on emergence of buying sparked by a firming global trend.

At the Multi Commodity Exchange, gold for June contract rose by Rs 34, or 0.20 per cent to Rs 16,647 per ten grams with an open interest of 16,008 lots.

Similarly, the metal for delivery in August traded higher by the same margin at Rs 16,740 per ten grams in 1,202 lots.

Gold Hikes in 2010 Budget

Hike in Import Duty for Gold and Silver occurs,

India's Union Budget for the year 2010-11 has gained both positive and negative reviews, and most points included in the budget have become issues of massive debates. Another such point is the increase of import duty on gold and silver, especially with both the metals now becoming more and more expensive with each passing day.

While the import duty on gold has been hiked to Rs. 300 per gram, from Rs. 200 a gram, that on silver has been taken from Rs. 1,000 per kilogram to Rs. 1,500 per kilogram.

BULLION MORNING -

Gold recovers after sell-off on euro strength, returning risk appetite.


Fast Markets - Gold prices recovered recent losses in European Tuesday trading, with prices looking to re-establish upside FLUCTUATION following the financial sector shake-out caused by the SEC fraud probe into Goldman Sachs at late last week.

About MCX- The Commodity Market

Multi Commodity Exchange (MCX) is an independent commodity exchange based in India.
It was established in 2003 and is located in Mumbai.

Globally, MCX ranks no. 1 in silver, no. 2 in natural gas, no. 3 in crude oil and gold in futures trading.

The Average daily turnover of MCX is about US$ 2.4 billion.
MCX has 10 strategic alliances with leading commodity exchange across the globe.
MCX now reaches out to about 500 cities in India with the help of about 10,000 trading terminals.

How to Trade the Gold-Silver Ratio :

First of all, trading the gold-silver ratio is an activity primarily undertaken by hard-asset enthusiasts like “GOLD BUGS” because the trade is predicated on accumulating greater quantities of the metal and not on increasing the dollar-value profits.Let us take an example :
The essence of trading the gold-silver ratio is to switch holdings when the ratio swings to historically determined "extremes." so, as an example:
1.When a trader possesses one ounce of gold, and the ratio rises to an unprecedented 100, the trader would then sell his or her single gold ounce for 100 ounces of silver.
2.When the ratio then contracted to an opposite historical "extreme" of, say, 50, the trader would then sell his or her 100 ounces for two ounces of gold.
3.In this manner, the trader would continue to accumulate greater and greater quantities of metal, seeking "extreme" ratio numbers from which to trade and maximize his or her holdings.
Note that no dollar value is considered when making the trade. The relative value of the metal is considered unimportant.

For those worried about devaluation, deflation, currency replacement and even war the strategy makes sense. Precious metals have a proven record of maintaining their value in the face of any contingency that might threaten the worth of a nation's wealth.

What is Bullion tips..?

MCX Tips cosisting of all the tips that comes under commodity exchanges but here i have mainly focussed on the bullion metals consisting mainly of Gold and Silver metals. Gold and Silver are the precious metals and trading can be done on them on a large basis in the multi commodity Exchange.

What are Commodity tips ?

Commodity Tips are the advices that are given for raw or primary products. Commodity market includes These raw commodities are traded on regulated commodity exchanges, in which they are bought and sold in standardized contracts.

MCX ranks No.1 in Silver; No.2 in Gold, Copper & Natural Gas and No.3 in Crude Oil in terms of number of futures contracts traded in the world during 2009, as per data compiled from exchanges website.