India imports 43 tons of gold in October, 65% more than last year
After dropping since the past couple of sessions, precious metal
turned higher on Monday, 15 November 2010 at Comex. Prices rose as
reports showed interest for physical demand for gold in recent times.
Generally, a stronger dollar pressures demand for
dollar-denominated commodities, such as crude oil and gold, which become
more expensive for holders of other currencies and also vice versa. But
bullion metals have registered increase in prices despite strong dollar
in recent times and vice versa.
On Monday, gold for December delivery ended at $1,368.5 an ounce, higher by $3 (0.2%) on the New York Mercantile Exchange. During intra day trading,
prices rose to a high of $1,378. It last steam going to the end of the
session. Last week, the yellow metal lost 2.3%. It was first weekly loss
for gold in three weeks.
Gold has surged to records since late August on expectations
that Federal Reserve efforts at monetary stimulus will depress the
dollar, making gold more valuable as an alternative store of wealth.
Gold ended the month of October 2010 higher by 3.8%. Before
this, it ended September 2010 and the third quarter higher by 5%. It was
eighth consecutive quarterly gain for gold. For the second quarter,
gold ended up by 12%. For the first quarter of this year, gold rose by
1.7%. On a year to date basis, gold is higher by 26.5%.
On Monday, December Comex silver futures ended marginally higher
by a cent at $25.95. Silver's trading volume on Comex had hit a record
level last week and prices reached thirty-year high figure. Prices then
dropped after minimum maintenance margin requirements for silver reportedly went to $6,500 from $5,000 per contract. Prices shed 3.1% last week, the first loss in four weeks.
For the month of October, silver gained 13%, its third
consecutive monthly gain. In September, silver ended higher by 12%. For
the third quarter, silver gained nearly 18%. For the second quarter,
silver ended higher by 3.1%. For the first quarter of this year, silver
rose by 3%. On a year to date basis, silver is higher by 59.5%.
Recent reports showed today that India imported 43 tons of gold
in October, 65% more than last year. The market for physical gold has
also benefitted from news last week that Vietnam, which is, along with
China and India, a top gold consumer, lifted restrictions on importing
gold.
The Commerce Department in US reported on Monday, 15 November 2010 that
retail sales jumped 1.2% in October, the largest increase since March 2010.
U.S. retail sales grew sharply in October, marking the fourth
straight monthly gain, as consumers flocked to auto showrooms and made
more purchases online. Sales for September and August were also revised
higher. Excluding motor vehicles, however, retail sales rose a more modest 0.4%.
The Federal Reserve Bank
of New York's Empire State manufacturing survey reported on Monday, 15
November 2010 that conditions for New York area manufacturers
deteriorated sharply in November, with a regional survey turning
negative for the first time since July 2009. A steep drop in the
new-orders components of the index, as well as a big drop in shipments,
sent the reading into negative territory.
Gold had ended FY 2009 higher by 24%. Silver futures had ended
2009 up 50%. The dollar index had lost 4.2% against its counterparts
last year.
At the MCX, gold prices for December delivery closed higher by
Rs 89 (0.44%) at Rs 20,223 per ten grams. Prices rose to a high of Rs
20,282 per 10 grams and fell to a low of Rs 20,066 per 10 grams during
the day's trading.
At the MCX, silver prices for December delivery closed Rs 199
(0.5%) higher at Rs 39,610/Kg. Prices opened at Rs 39,307/kg and rose to
a high of Rs 39,970/Kg during the day's trading.
