Precious Metals
D A I L Y B U Z Z
GOLD/SILVER
Gold prices rose by Rs 119 to Rs 26,638 per 10 grams in futures trade today as speculators created fresh positions on cues from overseas markets.At the Multi Commodity Exchange, Gold for delivery in April was up by Rs 119, or 0.45 per cent, to Rs 26,638 per 10 grams, with abusiness turnover of 698 lots.Similarly, the metal for delivery in June moved up by Rs 108, or 0.40 per cent, to Rs 26,789 per 10 grams, with a trade volume of six lots. Marketmen said fresh positions built-up by speculators in line with global trend as falling retail sales in the US cast doubt on the pace of growth in the world's largest economy, boosting demand for a safe-haven, mainly led to a rise in gold futures.Globally, gold in Singapore traded 0.5 per cent higher at USD 1,227.76 an ounce in early trade today. Silver prices remained in the range as European leaders failed to agree on Greece’s bailout program after talks in Brussels. Prices rose earlier after more stimulus from the Swedish central bank. The Riksbank lowered its repo rate to minus 0.10 percent from zero and said it will also make policy “more expansionary” by soon buying 10 billion kronor ($1.2 billion) in government bonds with maturities of one to five years. Core retail sales, which exclude automobile sales, slumped by 0.9% in December, disappointing forecasts for a 0.4% decline. Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy. Core sales correspond most closely with the consumer spending component of the government's gross domestic product report. Dollar weakness has been fueling the rally in gold as economic uncertainties and speculation on more monetary easing by central banks drive investors to bullion as an alternative investment. Technically market is under fresh selling as market has witnessed gain in open interest by 1.24% to settled at 9145 while prices down -172 rupee, now Silver is getting support at 36923 and below same could see a test of 36621 level, And resistance is now likely to be seen at 37654, a move above could see prices testing 38083.
