Precious Metals
Gold slipped on the futures market Thursday, tracking weak international prices that were
weighed by weak demand.
The August contract on the MCX was trading down 0.16% midday at Rs 26,020 per 10 gms,
after moving between Rs 26,085 and Rs 25,980.
In the spot market, gold was trading around Rs 26,740 per 10 gms.
Bullion traders expect gold to remain range bound until the new government announces its
plan on import duty, which was raised to 10% by the previous government to discourage gold
buying. India imposed curbs on gold imports because they were straining the country's current-
account deficit. With an improvement in the deficit situation now, many expect the government
to ease the restrictions.
Bullion sank 28% in 2013 to end a 12-year bull-run on speculation the US central bank will
asset purchases used to fuel growth as the economy recovers. According to estimates, data
on Thursday may show US retail sales rose in May, indicating an improvement in consumer
sentiment. The US Federal Reserve has made four rate cuts since January and the next meeting
is on June 17-18. Gold for August delivery traded at $1,260.90 an ounce on the Comex in New
York from $1,261.20 Wednesday.
D A I L Y B U Z Z
GOLDGold slipped on the futures market Thursday, tracking weak international prices that were
weighed by weak demand.
The August contract on the MCX was trading down 0.16% midday at Rs 26,020 per 10 gms,
after moving between Rs 26,085 and Rs 25,980.
In the spot market, gold was trading around Rs 26,740 per 10 gms.
Bullion traders expect gold to remain range bound until the new government announces its
plan on import duty, which was raised to 10% by the previous government to discourage gold
buying. India imposed curbs on gold imports because they were straining the country's current-
account deficit. With an improvement in the deficit situation now, many expect the government
to ease the restrictions.
Bullion sank 28% in 2013 to end a 12-year bull-run on speculation the US central bank will
asset purchases used to fuel growth as the economy recovers. According to estimates, data
on Thursday may show US retail sales rose in May, indicating an improvement in consumer
sentiment. The US Federal Reserve has made four rate cuts since January and the next meeting
is on June 17-18. Gold for August delivery traded at $1,260.90 an ounce on the Comex in New
York from $1,261.20 Wednesday.
