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    MTECHTIPS COMMODITY MARKET NEWS MTECHTIPS:-Can Gold and Silver climb back to record highs? QE 3 stimulus has helped create a buoyancy in gold and silver futures as precious metals continue to be favoured by investors at times of inflation. On Monday trading, US gold futures October has gained 0.25% at 1774.45 ounce while Silver has risen to 0.04% to $34.67 per ounce.Some analysts had earlier expect gold to climb back to record highsof$2000 by end 2012 while silver could gain from both industrial and investment demand. Weakness in dollar index is also supportive of the yellow metal.In Indian markets, festival demand has not spurred buying due to record high prices of Rs 32,900 that prevailed last week. But prices fell sharply to Rs 32,500 per 10 gram as stockists booked profits, traders said. Sileve witnessed decreased offtake on weaker demand from industrial units and coin makers.A weak Rupee will continue to impact prices of imported gold in the country and hence will adversely impact demand, traders said. MTECHTIPS:-RBI limits stimulus to reduction of CRR by 25 bps The Reserve Bank of India has limited its stimulus measures to a reduction of cash reserve ratio (CRR) by 25 basis points from 4.75% to 4.50% of the net demand and time liabilities (NDTL) while keeping the repo and reverse repo rates unchanged.D Subba Rao, RBI Governor in a mid-quarterly review of monetary policy for September 2012 said that globally risks have risen both on account of European Central Bank (ECB) and the US Fed have responded with liquidity measures intended to calm financial markets and provide further stimulus to economic activity. While these measures have certainly mitigated short-term growth and financial risks, they will also exert pressure on global asset prices, and particularly, commodity prices.RBI has kept the repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 percent and consequently the reverse repo rate und the LAF will also remain unchanged at 7 percent.RBI has been constrained to unleash further stimulus measures after a front loaded policy rate reduction by 50 basis points in April 2012 as inflationary pressures in both wholesale and retail are pretty storng. MTECHTIPS:-Gold is extremely bullish, target $1791, 1803 Gold breached $1750 an ounce as the much awaited catalyst helped make the precious market buoyant wiht physically backed gold exchange traded fund (ETP) holdings hitting another record high, according to a report by Barclays Capital.Importantly alongside the investor-led rally, physical demand has also picked up significantly in India and China with buying into the recent rally, indicating growing expectations of higher prices.Price forecast: Q3 12: $1665/oz; 2012 annual average: $1672/oz Gold ETP holdings made fresh new highs this week, adding 15.8 tonnes over the past week and reached 2517.3 tonnes by Friday. Monthly flow so far has reached 27 tonnes taking YTD inflow to 143 tonnes. The pick up in longer-term “sticky” interest alongside the move up in prices lends support to gold extending its gains.The most recent CFTC data showed gold’s non-commercial positions climbed to the highest since February of this year. Net speculative length added 11.6 klots with long positions gaining 9.5 klots, while short positions fell by 2.1 klots. Net speculative length as a percentage of open interests has climbed to 40%. MTECHTIPS:-Intraday volatility in Silver and the Currency connection Silver has been very volatile for the day for along with the opening bell of MCX, rupee began to a appreciate against US Dollar. The currency depreciated around 0.70% from the days high level of 53.63 against USD.Depreciation in Indian rupee is causal in appreciation of value of gold and silver. “This lead to some price correction in spot gold and silver.“However, the news that Reserve Bank of India has left repo rate unchanged and CRR hiked by 25bps, caused rupee depreciation.”Resistance for Silver is expected at Rs 648

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    MTECHTIPS COMMODITY MARKET NEWS MTECHTIPS:-Can Gold and Silver climb back to record highs? QE 3 stimulus has helped create a buoyancy in gold and silver futures as precious metals continue to be favoured by investors at times of inflation. On Monday trading, US gold futures October has gained 0.25% at 1774.45 ounce while Silver has risen to 0.04% to $34.67 per ounce.Some analysts had earlier expect gold to climb back to record highsof$2000 by end 2012 while silver could gain from both industrial and investment demand. Weakness in dollar index is also supportive of the yellow metal.In Indian markets, festival demand has not spurred buying due to record high prices of Rs 32,900 that prevailed last week. But prices fell sharply to Rs 32,500 per 10 gram as stockists booked profits, traders said. Sileve witnessed decreased offtake on weaker demand from industrial units and coin makers.A weak Rupee will continue to impact prices of imported gold in the country and hence will adversely impact demand, traders said. MTECHTIPS:-RBI limits stimulus to reduction of CRR by 25 bps The Reserve Bank of India has limited its stimulus measures to a reduction of cash reserve ratio (CRR) by 25 basis points from 4.75% to 4.50% of the net demand and time liabilities (NDTL) while keeping the repo and reverse repo rates unchanged.D Subba Rao, RBI Governor in a mid-quarterly review of monetary policy for September 2012 said that globally risks have risen both on account of European Central Bank (ECB) and the US Fed have responded with liquidity measures intended to calm financial markets and provide further stimulus to economic activity. While these measures have certainly mitigated short-term growth and financial risks, they will also exert pressure on global asset prices, and particularly, commodity prices.RBI has kept the repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 percent and consequently the reverse repo rate und the LAF will also remain unchanged at 7 percent.RBI has been constrained to unleash further stimulus measures after a front loaded policy rate reduction by 50 basis points in April 2012 as inflationary pressures in both wholesale and retail are pretty storng. MTECHTIPS:-Gold is extremely bullish, target $1791, 1803 Gold breached $1750 an ounce as the much awaited catalyst helped make the precious market buoyant wiht physically backed gold exchange traded fund (ETP) holdings hitting another record high, according to a report by Barclays Capital.Importantly alongside the investor-led rally, physical demand has also picked up significantly in India and China with buying into the recent rally, indicating growing expectations of higher prices.Price forecast: Q3 12: $1665/oz; 2012 annual average: $1672/oz Gold ETP holdings made fresh new highs this week, adding 15.8 tonnes over the past week and reached 2517.3 tonnes by Friday. Monthly flow so far has reached 27 tonnes taking YTD inflow to 143 tonnes. The pick up in longer-term “sticky” interest alongside the move up in prices lends support to gold extending its gains.The most recent CFTC data showed gold’s non-commercial positions climbed to the highest since February of this year. Net speculative length added 11.6 klots with long positions gaining 9.5 klots, while short positions fell by 2.1 klots. Net speculative length as a percentage of open interests has climbed to 40%. MTECHTIPS:-Intraday volatility in Silver and the Currency connection Silver has been very volatile for the day for along with the opening bell of MCX, rupee began to a appreciate against US Dollar. The currency depreciated around 0.70% from the days high level of 53.63 against USD.Depreciation in Indian rupee is causal in appreciation of value of gold and silver. “This lead to some price correction in spot gold and silver.“However, the news that Reserve Bank of India has left repo rate unchanged and CRR hiked by 25bps, caused rupee depreciation.”Resistance for Silver is expected at Rs 648

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    Mtechtips Commodity News Marketttt

    Uploaded by

    MtechTips
    MTECHTIPS COMMODITY MARKET NEWS MTECHTIPS:-Can Gold and Silver climb back to record highs? QE 3 stimulus has helped create a buoyancy in gold and silver futures as precious metals continue to be favoured by investors at times of inflation. On Monday trading, US gold futures October has gained 0.25% at 1774.45 ounce while Silver has risen to 0.04% to $34.67 per ounce.Some analysts had earlier expect gold to climb back to record highsof$2000 by end 2012 while silver could gain from both industrial and investment demand. Weakness in dollar index is also supportive of the yellow metal.In Indian markets, festival demand has not spurred buying due to record high prices of Rs 32,900 that prevailed last week. But prices fell sharply to Rs 32,500 per 10 gram as stockists booked profits, traders said. Sileve witnessed decreased offtake on weaker demand from industrial units and coin makers.A weak Rupee will continue to impact prices of imported gold in the country and hence will adversely impact demand, traders said. MTECHTIPS:-RBI limits stimulus to reduction of CRR by 25 bps The Reserve Bank of India has limited its stimulus measures to a reduction of cash reserve ratio (CRR) by 25 basis points from 4.75% to 4.50% of the net demand and time liabilities (NDTL) while keeping the repo and reverse repo rates unchanged.D Subba Rao, RBI Governor in a mid-quarterly review of monetary policy for September 2012 said that globally risks have risen both on account of European Central Bank (ECB) and the US Fed have responded with liquidity measures intended to calm financial markets and provide further stimulus to economic activity. While these measures have certainly mitigated short-term growth and financial risks, they will also exert pressure on global asset prices, and particularly, commodity prices.RBI has kept the repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 percent and consequently the reverse repo rate und the LAF will also remain unchanged at 7 percent.RBI has been constrained to unleash further stimulus measures after a front loaded policy rate reduction by 50 basis points in April 2012 as inflationary pressures in both wholesale and retail are pretty storng. MTECHTIPS:-Gold is extremely bullish, target $1791, 1803 Gold breached $1750 an ounce as the much awaited catalyst helped make the precious market buoyant wiht physically backed gold exchange traded fund (ETP) holdings hitting another record high, according to a report by Barclays Capital.Importantly alongside the investor-led rally, physical demand has also picked up significantly in India and China with buying into the recent rally, indicating growing expectations of higher prices.Price forecast: Q3 12: $1665/oz; 2012 annual average: $1672/oz Gold ETP holdings made fresh new highs this week, adding 15.8 tonnes over the past week and reached 2517.3 tonnes by Friday. Monthly flow so far has reached 27 tonnes taking YTD inflow to 143 tonnes. The pick up in longer-term “sticky” interest alongside the move up in prices lends support to gold extending its gains.The most recent CFTC data showed gold’s non-commercial positions climbed to the highest since February of this year. Net speculative length added 11.6 klots with long positions gaining 9.5 klots, while short positions fell by 2.1 klots. Net speculative length as a percentage of open interests has climbed to 40%. MTECHTIPS:-Intraday volatility in Silver and the Currency connection Silver has been very volatile for the day for along with the opening bell of MCX, rupee began to a appreciate against US Dollar. The currency depreciated around 0.70% from the days high level of 53.63 against USD.Depreciation in Indian rupee is causal in appreciation of value of gold and silver. “This lead to some price correction in spot gold and silver.“However, the news that Reserve Bank of India has left repo rate unchanged and CRR hiked by 25bps, caused rupee depreciation.”Resistance for Silver is expected at Rs 648

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    MTECHTIPS COMMODITY MARKET NEWS MTECHTIPS:-Can Gold and Silver climb back to record highs?

    QE 3 stimulus has helped create a buoyancy in gold and silver futures as precious metals continue to be favoured by investors at times of inflation. On Monday trading, US gold futures October has gained 0.25% at 1774.45 ounce while Silver has risen to 0.04% to $34.67 per ounce.Some analysts had earlier expect gold to climb back to record highsof$2000 by end 2012 while silver could gain from both industrial and investment demand. Weakness in dollar index is also supportive of the yellow metal.In Indian markets, festival demand has not spurred buying due to record high prices of Rs 32,900 that prevailed last week. But prices fell sharply to Rs 32,500 per 10 gram as stockists booked profits, traders said. Sileve witnessed decreased offtake on weaker demand from industrial units and coin makers.A weak Rupee will continue to impact prices of imported gold in the country and hence will adversely impact demand, traders said.

    MTECHTIPS:-RBI limits stimulus to reduction of CRR by 25 bps


    The Reserve Bank of India has limited its stimulus measures to a reduction of cash reserve ratio (CRR) by 25 basis points from 4.75% to 4.50% of the net demand and time liabilities (NDTL) while keeping the repo and reverse repo rates unchanged.D Subba Rao, RBI Governor in a mid-quarterly review of monetary policy for September 2012 said that globally risks have risen both on account of European Central Bank (ECB) and the US Fed have responded with liquidity measures intended to calm financial markets and provide further stimulus to economic activity. While these measures have certainly mitigated short-term growth and financial risks, they will also exert pressure on global asset prices, and particularly, commodity prices.RBI has kept the repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 percent and consequently the reverse repo rate und the LAF will also remain unchanged at 7 percent.RBI has been constrained to unleash further stimulus measures after a front loaded policy rate reduction by 50 basis points in April 2012 as inflationary pressures in both wholesale and retail are pretty storng.

    MTECHTIPS:-Gold is extremely bullish, target $1791, 1803


    Gold breached $1750 an ounce as the much awaited catalyst helped make the precious market buoyant wiht physically backed gold exchange traded fund (ETP) holdings hitting another record high, according to a report by Barclays Capital.Importantly alongside the investor-led rally, physical demand has also picked up significantly in India and China with buying into the recent rally, indicating growing expectations of higher prices.Price forecast: Q3 12: $1665/oz; 2012 annual average: $1672/oz Gold ETP holdings made fresh new highs this week, adding 15.8 tonnes over the past week and reached 2517.3 tonnes by

    Friday. Monthly flow so far has reached 27 tonnes taking YTD inflow to 143 tonnes. The pick up in longer-term sticky interest alongside the move up in prices lends support to gold extending its gains.The most recent CFTC data showed golds non-commercial positions climbed to the highest since February of this year. Net speculative length added 11.6 klots with long positions gaining 9.5 klots, while short positions fell by 2.1 klots. Net speculative length as a percentage of open interests has climbed to 40%.

    MTECHTIPS:-Intraday volatility in Silver and the Currency connection


    Silver has been very volatile for the day for along with the opening bell of MCX, rupee began to a appreciate against US Dollar. The currency depreciated around 0.70% from the days high level of 53.63 against USD.Depreciation in Indian rupee is causal in appreciation of value of gold and silver. This lead to some price correction in spot gold and silver.However, the news that Reserve Bank of India has left repo rate unchanged and CRR hiked by 25bps, caused rupee depreciation.Resistance for Silver is expected at Rs 64800 and support at Rs 63500.Intra-day traders may short sell silver around Rs 64500 with stop loss of Rs 64800 for target near Rs 64000-63800. he added.The QE3 announcement had seen silver charting new heights followed by some amount of profit booking.

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