Tuesday, June 10, 2014


Precious Metals
D A I L Y B U Z Z 
Gold fell below Rs 26,000 per 10 gms on the futures market Monday to touch a low of Rs 25,811 for the August contract. The metal was trading at Rs 25,883 per 10 gms on the MCX midday after climbing down from an intraday high of Rs 25,930. 

On the spot market, gold was trading at Rs 26,700 per 10 gms. "Prices will fall further as we are expecting the government to reduce import duty shortly," said Kapil Parekh, executive director at the Indian Bullion & Jewellers Association. "The rupee too is expected to strengthen further, which will further bring down prices." 

In the international market, gold held above the lowest level in four months on speculation that recent declines may spur purchases. Gold for immediate delivery traded at $1,253.68 an ounce In Singapore compared with $1,253.23 on Friday, according to Bloomberg generic pricing. The metal on June 3 dropped to $1,240.73, the lowest since January 31, as signs of a US economic recovery drove the Standard & Poor's 500 Index to a record and fuelled gains in the dollar. In China, the world's largest bullion consumer, volumes for the benchmark spot contract in Shanghai fell to 8,568 kilograms on June 6, the least since April 4. The nation's exports rose more than analysts estimated in May while imports unexpectedly slumped, latest data showed. Gold for August delivery traded at $1,254.20 an ounce on the Comex in New York, from $1,252.50 on June 6. The bullion's 60-day historical volatility was at the lowest since April 2013.