5/09/2011 05:17:00 PM
Your Advisor
Precious metals pack came under pressure in the last week. Silver especially declined sharply by 26 percent as rise in margin requirements on the CME led to sharp selling pressure. Silver had outpaced gold in terms of price performance till the end of April, until its reversal from a high of $49.83/oz. Year-to-date gains for the white metal have slipped to 15 percent and the metal to around $35.59/oz on Friday.
Outlook
We expect gold to trade with a positive bias, taking cues from a weaker dollar. However, we do not expect sharp gains from these levels as prices have increased sharply in the rally prior to the sell-off last week.
Lead Trend
Lead was the worst performer of the week, as the metal declined around 9 percent on the LME and around 7 percent on the MCX. The metal touched a low of $2200/tonne on the LME and closed at $2287.25/tonne. On a weekly basis, lead inventories increased by 1 percent to 311,450 tonnes on the LME warehouse. On the MCX, the metal touched a low of 99.40/kg last week and closed at `105.05/kg on Friday.
Copper Review
Copper slipped below the $9,000/tonne mark on the LME in the last week. The red metal prices touched a low of $8657.50/tonne and closed its trading session at $8789/tonne. The metal LME inventories rose almost 1 percent to 467,175 tonnes last week. MCX copper May contract declined more than 4 percent last week and close at
`398.60/kg on Friday.
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