Gold, little changed in London, may decline as some investors sell the metal to cover losses on other assets. Platinum, palladium and silver all fell.


The euro slid against the dollar after the International Monetary Fund urged Spain to do more to overhaul its ailing banks,adding to speculation that European financial institutions may face greater losses.All six industrial metals on the London Metal Exchange dropped, as did oil and global equities. Holdings in the biggest gold-backed exchange-traded fund rose to a record.

On Saturday (22 May 2010), the Gold Prices declined further on the bullion market due to reduced buying from stockists and jewellers following bearish global sentiment. Silver made a marginal recovery on the back of fresh buying by stockists.


In Mumbai, standard gold declined by Rs 10 for 10 gm to Rs 18,075 and pure gold decreased by Rs 20 for 10 gm to Rs 18,160. Silver spot increased by Rs 55 per kg to Rs 29,060.


In Chennai, bar silver was traded at Rs 29,270 and retail silver at Rs 31.30 per gm. The standard gold was traded at Rs 18,140, while the retail ornament gold was traded at Rs 1,687 per gm.

Gold prices retreated on Friday on some improvement in risk aversion sentiment. The prices were also being affected due to seller response to margin calls from other markets. Though gold fell 4% over the course of the week, longer-term investors kept using the retreat to accumulate metal.


Gold future for June delivery closed lower by $12.50 to settle at $1,176.10 an ounce after trading in a range of $1,166 to $1,188 on the Comex division of the New York Mercantile Exchange. Spot gold last traded at $1,176.05 versus $1,182.35 late in New York’s previous session.

In Mumbai on Thursday (20 May 2010), standard gold was traded at Rs 18,090 for 10 gm and pure gold at Rs 18,180 for 10 gm. Silver spot was traded at Rs 29,135 for 1 kg.


In Chennai, bar silver was traded at Rs 29,710 for 1 kg and retail silver at Rs 31.80 per gm. The standard gold was traded at Rs 18,170 for 10 gm, while the retail ornament gold was traded at Rs 1,690 per gm.

MARKET ROUNDUP

Gold slid more than 2 percent on Wednesday, the biggest one-day fall since February, with traders cashing in profits from last week's record high as equity & commodity markets fell on deepening euro zone worries.

IN FOCUS

- The world's largest gold-backed exchange-traded fund, SPDR Gold Trust said its holdings rose to another record high at 1,220.152 tonnes.

- The world's largest silver-backed exchange- traded fund, the iShares Silver Trust, said its holdings stood at 9,197.37 tonnes.

- The euro struggled to retain gains on Thursday after a fragile rebound from the previous day's four-year lows as political divisions in Europe.

- The European debt crisis poses a big test for the euro currency and the economies hit by the problems face a long, difficult road to recovery, former U.S. Federal Reserve Chairman Paul Volcker said on Tuesday.

MCX GOLD TRADING STRATEGY ::

Hold long positions with a stop loss of 18128.
RSI has started showing negative divergence as it is lower than the peak and price made a new high of the rise. It has tested the earlier contract peak of 18415. Therefore, at higher range profit booking pressure can be witnessed.Gold tested the contract peak of 18415 by making a high of 18424 and reacted down to close at 18253.Overall use rise to 18276-18401- 18674 on intra-day spike to book profits.Re-enter long if the close is above 18424 with a positive candle.Check only at the time of closing, If the price is above it at the closing time then only re-enter long.


MCX SILVER TRADING STRATERGY ::

Exit long positions on rise to 29534-29875- 30682.
Contrarian traders can take chances to sell at 29534-29875 with a s top loss of
30163. In order to reduce risk try to sell as higher range of 29875 or above or near 30163 after looking at the market movement.Expect lower range of 29068-28261 to be tested.A near term sideways to corrective movement down is likely to be witnessed.Therefore, profit booking on the long positions is generally advisable.

Gold imports by India, the world's biggest market for the precious metals, could drop for a third straight year in 2010 as record high prices scare off traditional buyers.

Traders expect to spot the first sign of this trend at next week's Hindu festival of Askhay Tritiya, when demand usually jumps because it is considered an auspicious time to buy jewellery and coins.

"Forget buying for the festival, on the contrary people are selling," said Suresh Hundia, president of the Bombay Bullion Association in Mumbai.

"There is a queue of sellers" Gold is up 12.6 percent so far this year to record levels on investors' fears that a $1-trillion rescue package to prevent a Greek debt crisis from spreading to other euro zone states would eventually fail, or stoke inflation.

On Friday the metal was heading for its fourth consecutive weekly rise, matching a run that ended in late November. Gold stood at $1,234.40 an ounce by 0636 GMT, up $2.57 from New York's Thursday notional close, but off Wednesday's record of $1,248.15.

Traders say many Indians are responding by buying smaller quantities to maintain the same expenditure, or recycling old jewellery. Those who can afford to spend more may wait for prices to stabilise before they buy.

"Demand has turned to zero in the last four days," Hundia added. "Last year for the festival about 12 tonnes was sold. If prices stay like this, there will be very little sold."

After Akshay Tritiya, demand may spurt only for the festivals of Ganesh Chaturthi in September and Dhanteras in November.

Precious Metals prices extended their upward rally yesterday with gold prices reaching an alltime high of $1248 per ounce on COMEX and Silver crossing Rs. 30K per kg on MCX. Attributes of precious metals being a safe-haven asset is encouraging high level in investment demand. The world's largest gold-backed exchangetraded fund, SPDR Gold Trust, said its holdings stood at a record high of 1,209.499 tonnes as of May 12, up 17.3490 tonnes from 1,192.150 tonnes in the previous business day. The world's largest silver-backed exchangetraded fund, the iShares Silver Trust, said its holdings stood at 9,115.15 tonnes as of May 12, unchanged from the previous business day.

MCX, India’s No. 1 Commodity Exchange, has become the 6th largest and amongst the fastest growing commodity futures exchange in the world in terms of the number of contracts traded during the period
Jan to Dec 2009.

With a vision to be amongst the top commodity futures exchange in the world, MCX will celebrate 2010 as a ‘Year of Metal and Energy’.The key commodity segments that enabled MCX to attain the 6th position globally are Bullion, Base Metals and Energy.

Metals and Energy segments contribute more than 95% to MCX’s volumes.In addition, MCX has become the largest exchange in Silver; the second largest in Gold, Copper and Natural Gas and the
third largest in Crude Oil futures in the world, in terms of number of futures contracts traded during the calendar year 2009.

For the period January to December 2009, the total number of contracts traded on MCX in Silver, Gold, Copper, Natural Gas and Crude Oil futures were 28.51 million, 30.42 million, 29.60 million, 11.12 million and 41.09 million.

On this development, Mr. P.K Singhal, Deputy Managing Director, MCX, said, “We are proud to be the world’s 6th largest commodity futures exchange and one of the best exchanges globally from the eastern part of the world.This development establishes India’s status as a ’Price Setter’ from being a ’Price Taker’. We are committed to make MCX the best commodity exchange in the world.


Metals and Energy segments are the key contributors to our success and these have enabled us to become the 6th largest exchange within 6 years of commencement of our operations. We have decided to provide special status to metals and energy segments, for the year 2010, with an aim to move up further in the global chart.Prices of MCX in Gold, Silver, Copper, Nickel, Zinc as well as Crude Oil have become reference points for the spot market and have become a basis for decision making for the participants of the ecosystem.

This price has become a benchmark price since India has a significant share of trade in metal and energy segments giving India its rightful place as a “Price Setter’’.

NEW DELHI: Gold Prices today spurted by Rs 495 to regain the Rs 18,000 per ten gram level after five months on heavy buying driven by a rally in overseas markets.

Standard gold surged by Rs 495 to Rs 18,110 per ten gram, a level last seen on November 26, 2009.

Silver also jumped Rs 565 to Rs 28,165 per kg on increased offtake by industrial units and coin makers.

Gold in global markets, which normally set the price trend on the domestic front, recorded a handsome rally of 33.20 dollars to 1,208.80 dollars an ounce last evening.

Some funds shifting from melting equity to rising gold for quick gains and firming trend at the futures trading further fuelled the uptrend, marketmen said.

Standard gold and ornaments surged by Rs 495 each to Rs 18,110 per ten gram and Rs 17,960 per ten gram respectively, Sovereign, followed suit and rose by Rs 100 to Rs 14,250 per piece of eight gram.

NEW DELHI: Gold prices on Wednesday fell by Rs 135 to Rs 17,250 /10 gram on the bullion market here on heavy selling by stockists after weak global cues.

Silver prices declined by Rs 900 to Rs 27,850 per kg. Gold in the overseas markets, which normally the set the price trend on the domestic front here, dropped 0.4 per cent to 1,166.55 $ an ounce after the dollar rose on European debt woes and a report showing an unexpected jump in US factory orders.

Standard gold and ornaments plunged by Rs 135 each to Rs 17,250 and Rs 17,100 per ten gram respectively. They had gained Rs 155 in the three previous sessions. Sovereign, however, closed flat at Rs 14,150 per piece of eight gram in restricted activity. Similarly, silver ready dropped by Rs 900 to Rs 27,850 per kg and weekly-based delivery by Rs 1,130 to Rs 27,300 per kg. Silver coins fell by Rs 200 to Rs 33,700 for buying and Rs 33,800 for selling of 100 pieces.

Gold climbed to a five-month high in London on signs of increased demand for the metal as an alternative to the euro and other currencies.
Bullion rose to records in euros, Swiss francs and British pounds, extending gains this year as concern about sovereign debts in Europe spurred investors to seek a hedge. Government workers in Greece, which is being bailed out by the European Union and the International Monetary Fund, began the first day of a 48-hour strike against budget cuts.

“Gold is incorporating a premium due to currency and default risk,” said Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland. “There is a high risk aversion among gold investors, and it’s all about safe haven.”

Bullion for immediate delivery jumped as much as $6.95, or 0.6 percent, to $1,189.13 an ounce, the highest intraday price since Dec. 4, and was at $1,186.80 at 12:03 p.m. local time. Futures for June delivery rose 0.3 percent to $1,186.90 on the Comex in New York.

Prices in dollars are still 3.2 percent below the record $1,226.56 an ounce on Dec. 3. That signals more confidence in the dollar than European currencies or the yen, Dincer said. Gold has gained 8.1 percent this year in dollars, 9.9 percent in yen, 14 percent in Swiss francs and 18 percent in euros.
Higher ‘Fixing’

Gold rose to $1,184.25 an ounce in the morning “fixing” in London, used by some mining companies to sell production, from $1,179.25 at the afternoon fixing on April 30. No fixing took place yesterday, when U.K. financial markets were closed for a national holiday.

Bullion will trade at $1,100 an ounce in six months and $1,050 in a year, below previous forecasts of $1,250 and $1,175, Robin Bhar, an analyst at Credit Agricole Corporate & Investment Bank in London, said in a report today.

MUMBAI : Gold prices surged by Rs 145 to Rs 17,170 per ten gms at the bullion market, here today on sustained buying by stockists and traders.

Silver also firmed upto regain the Rs 29-K level on persistent demand from industrial users to cover hectic stockists demand. It had hit the Rs 29,000-level on January 20 this year.

Standard gold (99.5 purity) strengthened by Rs 145 per ten grams to close at Rs 17,170 from last Friday's closing level of Rs 17,025.

Pure gold (99.9 purity) rose by a similar margin of Rs 145 per ten grams to conclude at Rs 17,255 as against Rs 17,110 previously.

Silver ready (.999 fineness) shot up by Rs 265 per kilo to end at Rs 29,025 from Rs 28,760 previously.

Gold prices were largely flat after reaching near five-month highs in the previous session and closed marginally lower as the safe-haven demand in gold eases as global equities rise, defying economic worries after a series of sovereign credit downgrades in Europe.


US gold futures for June delivery settled down $3 at $1,168.80 on the COMEX division of the NYMEX. Spot gold last traded at $1,168.45 an ounce, against $1,164.45 late in New York on Wednesday.