Gold Updates 27.08.2012

Gold Updates 27.08.2012:- MUMBAI: Country's benchmark October gold contract extended gains on Monday morning to hit a record high of Rs 31,091 per 10 grams, following a rally in the world markets and on a weak rupee.

International spot gold rose to the loftiest level since mid-April on Monday, extending strong gains from last week as expectations for further monetary easing from the US Federal Reserve kept sentiment buoyant.

However, a price rise is set to trim country's gold consumption, and subsequently imports, in the peak festive season.

Investors, looking at short-term gains, have liquidated a portion of their holdings in gold in the last few days after the yellow metal touched Rs 31,000 per 10 gm. Jewellers and bullion dealers say that those who need immediate cash are selling gold now but they will again enter the market shortly as there is a feeling in the market that the yellow metal will touch Rs 32,500 around Diwali.
Bullion analysts say speculative and investment demand of the metal have resulted in prices more than doubling since 2008 curbing purchases from price-sensitive Indian buyers. India's gold imports in the second quarter plunged more than 56% on the year to 131 tonne, according to the World Gold Council.

Rajiv Popley, director of Mumbai-based jeweller Popley & Sons, said: "Gold has already given a 10% return in the first eight months of this year. Some may liquidate gold now but they will again return to the market shortly. Gold may touch Rs 32,500 per 10 gm sometime around Diwali."
Speculators raised their net long positions in U.S. gold futures and options to 140,126 lots in the week ended Aug. 21, the highest since the beginning of May, said the US Commodity Futures Trading Commission.

Investors also piled into physically backed exchange-traded gold funds, lifting the holdings of gold ETFs tracked by Reuters to a historical high above 71.4 million ounces. (Neal Bhai)

SILVER Weekly Technical Report 27.08.2012 to 31.08.2012

MCX Silver September as seen in the weekly chart above has opened at 53,646 levels initially moved lower, but found support at 53,520 levels. Later prices rallied sharply breaking both the resistances towards 57,549 levels, and finally closed sharply higher from the previous weeks closing levels.

For the next week we expect Silver prices to find support in the range of 56,540-56,500 levels and then strong support is seen at 56,100-56,000 levels. Multiple closing below 56,000 levels would confirm that the current rally has come to an end and thereby correction can be expected initially towards 55,600 levels, then 54,980 and then finally towards the major support at 54,440 levels.

Strong Resistance is now observed in the range of 57,700-58,000 levels. Multiple closing above 58,800 levels would further extend the current rally initially towards 58,750 levels and then finally towards the major Resistance at 60,100 levels. (NEAL BHAI)

CRUDE Weekly Technical Report 27.08.2012 to 31.08.2012

MCX Crude September as seen in the weekly chart above has opened at 5378 levels initially moved sharply higher, but found good resistance at 5425 levels. Later prices fell sharply towards 5292 and finally closed lower from the previous weeks closing levels.

For the next week we expect Crude prices to find support at 5288-5260 levels and further below strong support is seen at 5223-5203 levels. Daily closing below 5200 levels would indicate that the current rally has come to end and thereby correction can be expected initially towards 5133 levels, then 5053 and then finally towards the major support at 4940 levels.

Strong Resistance is now observed in the range of 5420-5450 levels. Trading consistently above 5450 levels would extend the previous week’s rally initially towards 5490 levels, then 5557 and then finally towards the Major resistance at 5600 levels. (NEAL BHAI)

COPPER Technical Report 27.08.2012 TO 31.08.2012

COPPER:-  MCX Copper August as seen in the weekly chart above has opened at 419.60 levels initially moved lower, but found strong support at 414.10 levels. Later prices rallied sharply towards 426.95 levels and finally closed sharply higher from the previous weeks closing levels.

For the next week we expect Copper prices to find support in the range of 422.40-421 levels and further below strong support is seen at 418.40-416.40 levels. Daily closing below 416 levels would indicate that the current rally has come to an end and thereby correction can be expected initially towards 412.20, then 407.90 and then finally towards 402 levels.

Strong Resistance is now observed in the range of 430.80-432 levels. Daily closing above 432 levels would extend the current rally initially towards 438 and then finally towards the major resistance at 443.60 levels.

GOLD Technical Report 27.08.2012 TO 31.08.2012

Gold October as seen in the weekly chart above has opened at 30,158 initially moved marginally lower, but found very good support at 30,121 levels. Later prices rallied sharply towards 30,955 levels and finally closed sharply higher from the previous weeks closing levels.

For the next week we expect gold prices to find Support at 30,730 – 30,660 levels and further below strong support is seen at 30,390-30,360 levels. Trading consistently below 30,350 levels would trigger sharp correction initially towards 30,245 then 30,160 and then finally towards the major support at 30,080 levels.

Resistance is observed in the range of 31,180-31,200 levels. Trading consistently above 31,210 levels would lead towards the strong resistance at 31,480 levels, and then finally towards the Major resistance at 32,110 levels. (Neal Bhai 9999974733)

GOLD NEWS UPDATES 22.08.2012

GOLD NEWS UPDATE 22.08.2012:- LONDON: Gold prices rose on Tuesday as the dollar hit its lowest in nearly two weeks against the euro and stock markets rallied, while platinum held near two-month highs as unrest simmered at a mine in major producer South Africa.



Platinum has been the biggest climber of the last seven days, up more than $100 an ounce week-on-week on Tuesday, after police shot dead 34 people after an outbreak of inter-union violence at a mine operated by Lonmin.



Gold prices climbed, meanwhile, in line with European shares and the euro, on optimism that meetings on Greece's future and a strategy being drawn up by the European Central Bank will lead to progress in solving the euro zone debt crisis.



Spot gold was up 0.3 percent at $1,623.86 an ounce at 0948 GMT, while U.S. gold futures for December delivery were up $3.40 at $1,626.40. It is approaching key resistance at $1,630 an ounce, which has held it in check since early June.



"Gold has got a good gentle uplift at the moment, with the backdraft of positive news on the euro," Sharps Pixley Chief Executive Ross Norman said. "We're seeing a nice gentle pick up in volumes across Europe on the physical side, (but) we've got all the heavy lifting to do between $1,630 and $1,640."



"There's quite a lot of overhead resistance on the charts, so once we've got a convincing breach of that we need to see a bit more volume as well. Over the summer, it's been particularly light. The market just seems to be drifting higher."



Greece's prime minister will meet German Chancellor Angela Merkel, French President Francois Hollande and Eurogroup chief Jean-Claude Juncker this week to try and secure more funding from the European Union, International Monetary Fund and ECB.



German government bonds fell on Tuesday as markets focused on the prospect of ECB buying debt to contain Spanish borrowing costs.



Traders cited a story in British newspaper The Daily Telegraph, which said it could confirm earlier reports in German media that ECB experts were examining plans to effectively cap Spanish and Italian bond yields. (Neal Bhai 9999974733)

COPPER NEWS UPDATED 22.08.2012

COPPER NEWS UPDATED 22.08.2012:- LONDON: Copper marched to a one-month peak on Tuesday, testing the top of its recent range on optimism that the European Central Bank is drawing up a strategy to tackle the euro zone debt crisis, although some investors were wary about further gains.




The euro rallied to a seven-week high versus the dollar as talk of ECB action to ease Spanish and Italian borrowing costs resurfaced, even though the central bank tried to quash such speculation on Monday.



A strong euro makes dollar-priced copper cheaper for European investors. More gains in copper were likely to be limited by the intractable euro zone debt crisis, slower growth in top metal consumer China and a stuttering recovery in the United States, the world's largest economy, some analysts said.



"You've got hopes about the ECB again ... but the general trend hasn't changed much from July, we're still fairly rangebound," s aid Citi analyst David Wilson. "Markets are nervous about taking outright positions in either direction."



Three-month copper on the London Metal Exchange jumped 2.1 per cent to close at $7,610 per tonne after touching a session peak of $7,632, the highest since July 20. Copper dropped 1.1 per cent in the previous session.



The market tested the top of a range of $7,300 to $7,600 it has held over the past month. Analyst Edward Meir at INTL FCStone pegged key resistance at $7,620. "A two-day closing break above that mark would be significant," he said in a note.



Market volumes have been thin in recent weeks and Monday's open interest in copper fell to 229,844, its lowest since early 2007.



Markets took heart from coverage by British newspaper The Daily Telegraph, which said it could confirm weekend reports that ECB experts were examining plans to effectively cap Spanish and Italian yields, even if the bank has so far denied the speculation.



In China meanwhile, risk assets including copper received a modest boost after local media reported the Chinese city Chongqing was planning to invest $236 billion in seven major industries.



Import data from the world's top consumer, meanwhile, showed a marginal rise for July, with shipments of refined copper into China at 254,339 tonnes versus 250,097 tonnes in June.



"For now, with no clear trading direction, LME copper will be stuck within a range of $7,200-$7,800. But downside risks will increase over the longer term as Chinese consumer demand remains weak with no sign of improvement in global economics," said Andy Du, derivatives director at Orient Futures.



Chief Executive Ivan Glasenberg of Glencore saw potential for stronger demand in China towards the end of the year.



"I think we've got to watch China carefully to see what type of stimulus they will or won't put into place... personally I believe you will see more infrastructure spending in the second half," he told a conference call after the commodity trade house released interim results. (Neal Bhai 9999974733)

GOLD UPDATES 21.08.2012

GOLD NEWS UPDATE 21.08.2012:- KOCHI: Gold jewellers in the south are upbeat on the marriage and festival season that has just begun. Expansion of branches is keeping the business in good stead despite high gold prices.




Bulk purchases for marriages are still continuing though coin sales have slid. Most of the jewellery chains are now targetting rural and semi-urban areas in Tamil Nadu, Karnataka and Andhra Pradesh. This indicates that the September quarter may fare better compared with the previous one, which showed a 38% decline in gold demand in the country according to aWorld Gold Council report.



The marriage season has started in Kerala, coinciding with Onam festival in the last week of August. By September, Diwali will boost jewellery demand further and the trend will continue till November in other southern states. The price of 22 carat gold, used in jewellery, is inching up towards Rs 3,000 per gram.



Major jewellery groups are on an expansion spree, particularly to semi-urban areas to increase their revenue. Kalyan Jewellers, which recently roped in none other than Amitabh Bachchan for ads, is investing Rs 1,000 crore in the current year on its 15 new showrooms in south India and Gujarat.



"More customers are going to the organised sector to buy gold. With 35 showrooms in south India at present, our business has been growing 30% to 40% annually," said TK Ramesh, executive director of Kalyan Jewellers, which has a target of Rs 16,000 crore turnover this fiscal year.



Joyalukkas, another jewellery major, is planning to open eight showrooms this year. "People still make bulk purchases for weddings in south India. Of this, over 50% is new purchases while 30-40% is recycled gold," said PP Jose, chief operating officer of Joyalukkas.



Tapping new markets allows the chains to maintain a good growth in revenue. Buying trends are different among the southern states. Bulk purchases for marriages mostly take place in Kerala and metros in other states. But in rural areas, people buy small quantities of jewellery regularly.



Currently, buyers prefer gold jewellery to coins. "People seem to have lost confidence in gold coins. The share of coin sales in total sales has come down to around 10-15% from 30-40% earlier. Coins were in demand when there was a high volatility in prices. Now, the price rise is gradual," said Girirajan, MD of Bhima Jewellers. According to him, the depreciation of the rupee may raise gold prices again. (Neal Bhai 9999974733)

CRUDE 13.08.2012 TO 17.08.2012

MCX / NYMEX Crude Oil Trading levels for the week (13.08.2012 to 17.08.2012)

MCX Crude August as seen in the weekly chart above has opened at 5062 levels initially moved lower, but found good support at 5040 levels. Later prices rallied sharply towards 5225 and finally closed higher from the previous weeks closing levels.

For the next week we expect Crude prices to find support at 5047-5030 levels and further below strong support is seen at 4955-4935 levels. Daily closing below 4930 levels would indicate that the current rally has come to end and thereby correction can be expected initially towards 4860 levels, then 4782 and then finally towards the major support at 4732 levels.

Resistance is now observed in the range of 5220-5240 levels. Trading consistently above 5250 levels would renew the previous rally initially towards 5315 levels, then 5370 and then finally towards the Major resistance at 5440 levels.

COPPER 13.08.2012 TO 17.08.2012

MCX / LME Copper Trading levels for the week (13.08.2012 to 17.08.2012)

MCX Copper August as seen in the weekly chart above has opened at 413.05 levels initially moved lower, but found strong support at 411.80 levels. Later prices rallied sharply towards 419.85 levels and finally closed higher from the previous weeks closing levels.

For the next week we expect Copper prices to find support in the range of 411.30-410.80 levels and further below strong support is seen at 407.40-406.40 levels. Trading consistently below 406 levels would trigger sharp correction initially towards 404.25, then 397 and then finally towards 387 levels.

Resistance is now observed in the range of 419.20-420.20 levels and then strong resistance is seen at 423.50-425 levels.

Daily closing above 425 levels would resume the uptrend and thereby new leg up can be expected initially towards 430 then 435 and then finally towards the major resistance at 440 levels.

SILVER 13.08.2012 TO 17.08.2012

MCX / Spot Silver Trading levels for the week (13.08.12 to 17.08.12)

MCX Silver September as seen in the weekly chart above has opened at 53,265 levels initially moved lower, but found support at 53,027 levels. Later prices rallied sharply towards 53,735 levels, and finally closed higher from the previous weeks closing levels.

For the next week we expect Silver prices to find support in the range of 53,100-53,050 levels. Trading consistently below 53,050 levels would lead towards the strong support at 52,650-52,550 levels. Multiple closing below 52,500 levels would confirm that a short term top has been posted in the market and thereby correction can be expected initially towards 51,344 levels, then 50,850 and then finally towards the major support at 49,960 levels.

Resistance is now observed in the range of 53,810-53,860 levels. Trading consistently above 53,870 levels would lead towards the strong resistance at 54,240 levels and then finally towards the major Resistance at 55,050 levels.

NEAL BHAI 9999974733

GOLD 13.08.2012 TO 17.08.2012

MCX Gold October as seen in the weekly chart above has opened at 29,918 initially moved sharply lower, and as expected found very good support just above the expected level at 29,756 levels. Later prices rallied sharply towards 30,078 levels and finally closed higher from the previous weeks closing levels.

For the next week we expect gold prices to find Support at 29,960 – 29,930 levels and further below strong support is seen at 29,830-29,800 levels. Trading consistently below 29,800 levels would trigger sharp correction initially towards 29,660 then 29,500 and then finally towards the major support at 29,176 levels.

Resistance is observed in the range of 30,150-30,180 levels. Trading consistently above 30,180 levels would lead towards the strong resistance at 30,300 levels, and then finally towards the Major resistance at 30,478 levels.