Gold and Silver daily review (July 21, 2010)

MARKET ROUNDUP

Precious metals prices edged higher with gold prices rising by 1 percent after prices rebounded from near two-month lows in the previous session, and as weak U.S. housing data stirred economic uncertainty.

IN FOCUS

- The world's largest gold-backed exchangetraded fund, SPDR Gold Trust said its holdings fell to 1,308.128 tonnes by July 20 down by 6.083 tonnes from July 20, the previous business day.

- The world's largest silver-backed exchange-traded fund, the iShares Silver Trust, said its holdings stood at 9185.29 tonnes as of 20th July, unchanged from the previous business day.

- Argonaut Gold Inc posted a 57 percent jump in quarterly gold production at its El Castillo mine in Durango, Mexico, and said it was on target to achieve its full-year production outlook.


- New Gold said on Tuesday its secondquarter gold production rose 62 percent, driven by increased output from its Mesquite mine in the United States and its Cerro San Pedro Mine in Mexico.

- Premiums for gold bars strengthened on Tuesday after declines in bullion prices triggered buying from jewellers across Asia, with demand especially firm from India and Indonesia.

FUNDAMENTAL OUTLOOK

Precious metals prices are trading steady on COMEX today. We expect precious metals prices to further rise for the day as we expect the US dollar to weaken against the major international currencies during the day.