6/23/2011 05:44:00 PM
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MCX Commodity Trend
COMEX Gold Aug futures extended their prior day gains and ended 0.45 percent up to $1,553.4 per troy ounce from $1,546.6 per troy ounce on 21st June, 2011 as safe haven demand continued to lured investors to park their funds amid the growing uncertainty regarding the Greece crisis while the expectation of bearish tone about the U.S. economy to be heard in the FOMC meeting also supported the yellow metal. Investment demand has still not picked up and holdings at SPDR Gold ETF remained unchanged yesterday.
Gold Price
Gold prices closed in the positive territory on Wednesday despite dollar strength as global economic concerns supported the yellow metal. Concerns with respect to US economic recovery will remain a major supportive factor along with Euro Zone debt worries. Gold touched a high of $1558 /oz yesterday as latest comments by US Fed Chairman indicate that the economic scenario in the US continues to remain grim.We expect Gold and silver prices to trade higher on the back of concerns with respect to the US economy and the Euro Zone debt situation. European leaders begin a two-day summit in Brussels today in order to discuss Greece’s financing needs as the country struggles to avoid a default.
Copper Updates
COMEX Copper July futures ended slightly down by 0.01 percent to close at $4.0880 per pound from $4.0885 per pound on 21st June, 2011 on stronger dollar which capped the gains made by the red metal yesterday. Copper was trading in a choppy manner ahead of the FED statement which came in line with the expectation and gave no further signs of another quantitative easing round dubbed as QE3 followed by U.S. Economic recovery slower than expected and leaving the interest rate unchanged at 0.00 – 0.25 percent.
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