7th March, 2017

Daily Market Rates

India A.M. (07-03-17)

999 Gold - Rs. 29,185/-
995 Gold - Rs. 29,035/-
916 Gold - Rs. 26,733/-
999 Silver - Rs. 42,850/-

 

 

 

 



India P.M. (06-03-17)

999 Gold - Rs. 29,345/-
995 Gold - Rs. 29,195/-
916 Gold - Rs. 26,880/-
999 Silver - Rs. 43,180/-

Tuesday, March 7

The Reserve Bank of Australia is to announce its benchmark interest rate and publish a rate statement which outlines economic conditions and the factors affecting the monetary policy decision.
Germany is to release data on factory orders.
The U.K. is to release industry data on house price inflation.
The U.S. and Canada are to publish trade figures

Daily Gold Market Report

Gold resumes the decline – Analysis - 07-03-2017
Gold price continues the decline organized within the bearish correctional channel that appears in the above chart, keeping the bearish trend active on the intraday basis if the price settled below the previously broken bullish channel’s support that turns into resistance now at 1240.00, waiting for testing 1211.30 level mainly. It is important to monitor the price behavior when reaching the targeted level, where breaking it will extend the bearish correctional wave to reach 1195.28 as a next main target, while breaching 1240.00 will stop the current bearish bias and leads the price to regain the main bullish trend. Expected trading range for today is between 1211.30 support and 1237.00 resistance.
Expected trend for today: Bearish

Gold futures down at Rs. 28,983 per 10 gm

NEW DELHI, MARCH 7: Amid a weak global trend, gold prices drifted lower by 0.16 per cent to Rs. 28,983 per ten grams at the futures trade today as participants cut their bets. At the Multi Commodity Exchange, gold for delivery in far-month June fell Rs. 45 or 0.16 per cent to Rs. 28,983 per ten grams in a business turnover of 39 lots. Likewise, the yellow metal for delivery in April traded lower by Rs. 40 or 0.14 per cent to Rs. 28,905 per ten grams in 789 lots. Analysts said the weakness in gold futures was mostly in tune with a subdued trend overseas as investors expect Fed rate hike next week.

The man who called the bottom for gold now sees this

The man who called the bottom for gold now warns it could be time to fade one of the hottest commodity trades of the year. In December, when gold was trading around $1,130 an ounce, Carter Worth, of Cornerstone Macro, predicted the yellow metal could soon move higher. Since his contrarian call, gold has rallied 8 percent, driving the gold-tracking ETF GLD up by the same amount.

Gold jewellery demand likely to rebound after note ban

India’s gold jewellery demand is likely to increase 17 per cent in 2017 on a bounce-back after demonetisation. India Ratings, in its latest study, forecasts India’s gold jewellery demand at 600 tonnes in 2017, which is equivalent to the last five years’ average. The World Gold Council (WGC) estimated India’s gold jewellery demand at 514 tonnes in 2016.

Gold jewellery exports to UAE halve so far this year

KOLKATA: India's gold jewellery exports to the UAE have halved in the first two months of 2017 as the country has imposed a 5% import duty on gold jewellery. As a result, jewellers like Malabar Gold & Diamonds, Popley & Sons and others, who have a presence in the UAE, are ramping up their capacities there.

ED freezes shell companies accounts involved in laundering through gold sales

MUMBAI: The Enforcement Directorate (ED) has begun freezing the accounts of shell companies and investigating certain Mumbai-based bullion dealers suspected to be behind them. These companies transferred huge amounts of cash in scrapped 500 and 1000 notes to the dealers’ bank accounts for purchase of gold bars immediately after the demonetisation announcement on November 8.

Bitcoin, gold and the risk of comparisons

One simple chart is creating a lot of buzz in markets. It shows that for the first time in history, one bitcoin is worth more than one troy ounce of gold. Despite the flurry of discussion this factoid has generated, many are stupefied, not quite knowing what to do with this information or how to trade on it. Maybe it’s because they have little to do with each other.

Global gold prices steady amid Fed rate hike expectations

Bengaluru: Gold prices were little changed on Tuesday, hovering above a two-week low hit on Friday, amid expectations of a US interest rate hike this month and ahead of key economic data due later in the week. The US monthly jobs report due on Friday includes the non-farm payrolls, seen rising by 190,000 in a Reuters poll.Prices on most US interest rates futures rose modestly on Monday as traders bet on a strong likelihood the Federal Reserve will raise rates at its upcoming policy meeting next week.

Gold ends lower on interest-rate outlook, but geopolitical worries buoy

Gold prices settled slightly lower Monday, pressured by expectations for a U.S. interest-rate increase as early as this month, but with uncertainty surrounding a wide swath of geopolitics helping to limit any losses for the safe-haven asset. North Korean sabre-rattling, China’s trimmed GDP estimate, U.S. President Donald Trump accusing Obama of pre-election wiretapping and the persistence of troubled French presidential candidate François Fillon fueling political uncertainty there all combined to at least bring a short-term bid for gold.

Gold falls under pressure from U.S. rate rise prospects

Gold fell for the third straight session on Monday, but hovered above Friday's two-week low, pressured by comments from Federal Reserve Chair Janet Yellen that reinforced expectations of an increase to U.S. interest rates this month. Spot gold XAU= was down 0.6 percent at $1,226.61 an ounce by 3:09 p.m. EST (2009 GMT), having slid on Friday to $1,222.51, the lowest since Feb. 15. U.S. gold futures GCcv1 settled down 0.08 percent at $1,225.50.

Gold price at 1-month low brings more pain for mining stocks

After its worst week since November, gold was drifting lower again on Monday with the metal coming under pressure from a stronger dollar and a looming interest rate hike in the US which would only the third time since June 2006. Gold for delivery in April, the most active contract on the Comex market in New York, slumped to a low of $1,225.00 an ounce in early afternoon trade setting the metal up for the lowest close in a month.

Avoid Gold As Short-Term Rates Continue Higher

Short-term U.S. interest rates continue higher as the market prices in further rate hikes, which is pushing the price of gold lower. Although many gold bugs are tied to the story of gold, and how the volatility of a Trump presidency lends itself to higher prices of the yellow metal, the economy is saying otherwise. As long as short-term rates continue to trend higher, gold must be avoided.

Newmont joins gold 'staking rush' in Canada's once-fabled Yukon

VANCOUVER, March 6 (Reuters) - Newmont Mining on Monday became the latest of the world's biggest gold miners to invest in Canada's Yukon territory, the site of a famous gold rush 120 years ago, as miners hunt for rich, new deposits in safe regions. U.S.-based Newmont, the world's No. 2 gold producer, unveiled an agreement with small explorer Goldstrike Resources to spend $39.5 million to explore and develop Goldstrike's Plateau property in the Yukon.

Gold prices recover on renewed demand

Mumbai: Gold saw a mild recovery after its four-day fall at the domestic bullion market in Mumbai on Monday following renewed buying by jewellery stockists and retailers. Elsewhere, silver also rebounded owing to fresh speculative buying amid good industrial offtake.

Silver futures fall to Rs. 42,859 per kg

NEW DELHI, MARCH 7: Silver prices were down 0.17 per cent at Rs. 42,859 per kg at the futures trade as speculators reduced their exposure owing to a weak trend in global markets. At the Multi Commodity Exchange, silver prices for delivery in July fell Rs. 71 or 0.17 per cent to Rs. 42,859 per kg in a business turnover of 17 lots. On similar lines, the white metal for delivery in May traded lower by Rs. 18 or 0.04 per cent at Rs. 42,414 per kg in 195 lots. Analysts attributed the fall in silver prices in futures trade to a weak trend in global markets. Meanwhile, silver fell 1.06 per cent to $17.76 an ounce in New York yesterday.

BSF recovers pistols, silver ornaments along Indo-Bangla border

KOLKATA: The Border Security Force (BSF) recovered two pistols and three magazines close to the Indo-Bangladesh border in North 24-Parganas on Sunday. Nearly 10 kg of silver ornaments were also seized in the district during the day.

London silver benchmark providers to step down

The London Bullion Market Association is set to launch a search for a new provider for its London silver benchmark, after CME Group and Thomson Reuters said last week that they’ll be stepping down. CME Group and Thomson Reuters didn’t offer specific reasons for their decision, but Thomson Reuters on Friday noted that coming European benchmark regulation prompted a review of the LBMA silver price administration arrangements. The LMBA silver price is the global reference rate for the price of silver. It has been set by electronic auction, with the Thomson Reuters and CME Group providing it to the LBMA.

Gold Prices Fall Below Rs. 30,000, Silver Below Rs. 43,000

Gold prices dipped below the Rs. 30,000 mark today, plunging Rs. 350 to Rs. 29,750 per 10 grams amid a weak trend in overseas market and fall in demand from local jewellers. Silver also slipped below the Rs. 43,000-mark by falling Rs. 300 to Rs. 42,800 per kg on reduced offtake by industrial units and coin makers. Traders said apart from a weak trend overseas, fall in demand from local jewellers and retailers following end of the marriage season mainly pulled down gold prices.

Gold Prices Pull Back Toward February Low On Fed Hopes

Crude oil prices remain trapped in the consolidation of 2017 that followed the dramatic rise over the majority of 2016 after falling as low as $26/bbl in February. On Monday, the fundamentals of the Oil market received a favorable surprise when Iraq noted that OPEC would most likely need to extend output cuts, which have recently seen a 90%+ compliance rate. The reduction in supply from OPEC in accordance with balancing oversupply that caused much of the downturn in 2014-2016 has been met with strong supply expansion projects from non-OPEC members. Many see this fundamental tug-of-war as a key factor in the lack of price breakout on the back of the OPEC cuts. On Friday, we saw the seventh consecutive rise in active US Oil rigs per Baker Hughes, which shows more supply coming onto the market from US Producers.

Gold drops below $1230

A stronger US dollar across the board pushed the price of the yellow metal to the downside. The value of the ounce is pulling back on Monday after a having a sharp rally on Friday, from 2-week lows. XAU/USD reached $1236 at the beginning of the week but then lost strength and started to decline. Recently it broke below the short-term support area around $1230 and fell to $1228 hitting a fresh daily low.

Will Gold Reverse?

Gold (GLD, GDX) has been on a consistent uptrend since the end of December, with only small pullbacks along the way, reversing a large amount of losses experienced immediately after the Presidential election. However, this trend may finally revert now that the pacing of interest rate hikes looks to be moved up as the Federal Reserve attempts to play a game of catch-up with an employment level that has been nearing the theoretical "full" level for months, as well as with inflation. The bullish trend for gold that has been present for the last couple of months may now revert, however key items to consider are U.S. dollar price action and whether or not investors want to retain gold as a hedge against Trump administration uncertainty.

Worried You Might Buy Bitcoin or Gold

The price of gold has been rising, but perhaps not enough to suit the hot money. Meanwhile, the price of bitcoin has shot up even faster. From $412, one year ago, to $1290 on Friday, it has gained over 200% (and, unlike gold, we can say that bitcoin went up—it’s a speculative asset that goes up and down with no particular limit). Compared to the price action in bitcoin, gold seems boring. While this is a virtue for gold to be used as money (and a vice for bitcoin), it does tend to attract those who just want to get into the hottest casino du jure.


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