3/11/2011 06:22:00 PM
Your Advisor
- The recovery in the U.S. economy seems to be facing speed bumps with trade deficit for January 2011 that widened to a seven month high
- Chinese Consumer Price Index rose 4.9 percent in February, 2011
Yesterday U.S. greenback got strengthened and pressurized the Precious Metal Complex at COMEX. The dollar took support from a declining Euro which fell as Moody downgraded Spain’s Credit ratings by one notch. However the ongoing crisis in Middle East and North African countries is expected to upport the Precious Metals. Gold Apr futures on COMEX fell by 1.20% to close at $1,412.5 per troy ounce yesterday from $1,429.6 per troy ounce the prior day. Silver Mar futures also faced the heat and fell by 2.72% to $35.06 per troy ounce. Holdings at SPDR GOLD ETF and iShares Silver trust remained unchanged yesterday. Investment demand reduced and investors removed funds from the safe haven assets yesterday. Gold/silver ratio rose yesterday to 40.1 from 39.68 on 9 th Mar, 2011.
Silver prices likely to face resistance at $36.1/troy ounce and $36.9/troy ounce level i.e. at Rs. 54,006/kg and Rs.55,039/kg level in MCX March contract. While on lower side prices can take support at $34.5/troy ounce and $33.8/troy ounce level i.e. at Rs.52,272/kg and Rs.51,571/kg.
Base metals continue to look dull amid reports showing slow economic recovery in the U.S. and gloomy picture of China which reported trade deficit in Jan, 2011 for the first time since Mar, 2010. China is the largest consumer of industrial metals. The dragon country is putting in continuous efforts to tighten the money supply in an effort to curb inflation. The Inflation/Consumer Price Index for Feb 2011 grew by 4.9% same percentage growth as in the previous month to 110.5, higher than the analysts expectation of an increase by 4.7%. Higher global prices prompted profit-driven Chinese copper smelters to produce more metal in the January-February period despite the weeklong Lunar New Year holiday China's February copper output rose 3.8% on year to 386,000 metric tons, a decline of 5.6% from January's
409,000 tons, the National Bureau of Statistics said Friday. Total output in the January-February period rose 7.9% to 795,000 tons.
For Free Commodity tips Click here, All MCX Tips, Bullion tips, mcx trend, free commodity tips, mcx bullion tips, mcx bullion trend, base metal trend, gol price, silver price, commodity free tips, mcx tips, free mcx tips, base metal price you can get here.
