6/15/2011 05:50:00 PM
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Spot gold prices traded higher by 0.2 percent today mainly on the back of increasing concerns over Euro zone debt crisis coupled with rising inflationary pressure boosted demand for gold. But sharp gains were capped due to dollar strength. The yellow metal touched an intra-day high of $1526.99/oz and was hovering around $1524/oz till 4.00 pm IST. On account of Rupee appreciation gold declined around 0.1 percent on the MCX and touched an intra-day low of `22,296/10 gms today.
Base metal and crude oil prices are expected to trade lower today mainly tracking mixed sentiments in the global equity markets and dollar strength.
We expect gold to trade slightly higher today as Greece debt issues will provide support. Additionally, rising inflationary will also help gold to rise. But a stronger dollar will cap sharp gains in the yellow metal prices.
COMEX Gold Aug futures rebounded yesterday on inflationary concerns from China and India coupled with weak Retail Sales data from U.S. and rose by 0.58 percent to close at $1,524.4 per troy ounce from $1,515.6 per troy ounce on 13th June, 2011.
Investment demand continued to remain weak as holdings at SPDR Gold ETF remained unchanged yesterday. Gold/Silver ratio edged down slightly to 43.1 from 43.44 on 13th June, 2011 however investment demand showed divergence as holdings at iShares Silver trust declined by 42.46 tonnes yesterday.
COMEX Copper July futures discontinued their weak downtrend and ended in green yesterday closing at $4.1550 per pound; a 2.99 percent gain from $4.0345 per pound from 13th June, 2011 taking cues from declining LME Stockpiles and Chinese Industrial Data showing that demand would increase from the largest consumer of the metal.
The red metal even shrugged that Chinese rate hike and got support from a weaker Dollar Index which fell by 0.08 percent to 74.43 from 74.49 on 13th June, 2011. Copper three month futures on LME showed a 3.09 percent gain and closed at $9,180 per ton from $8,905 per ton on.
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