MCX Gold-Gold Fell on Strong Equity Markets,But Physical demand looks Strong
Gold fell on Today due to Firm Asian stock markets and the dollar firmness from turbulent week. Gold ' s appeal as a safe haven and prompting more selling in bullion-backed exchange traded funds.Demand in the physical market continued to hold prices near $1,400 an ounce as the recent drops in the spot market lured buyers to invest in bullion.Spot gold fell 0.26 percent to $1,390.71 an ounce,after gaining more than half a percent on Monday. It rose 2 percent last week - its strongest weekly percentage gain in a month - though the metal is down 17 percent for the year.U.S. gold rose 0.22 percent to $1,389.60.Bullion is being sold at high premiums compared to spot prices as there is not enough supply in the market to meet the strong demand.
Gold prices remain near a two-year low of $1,321.35 hit in mid-April as investors flock to higher-yielding stocks.Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, are at their lowest since mid-February 2009, falling 0.24 percent to 1,016.16 tonnes on Friday. The fund held 1,350.50 tonnes of gold at the beginning of 2013.
Russia, Turkey and Kazakhstan were among central banks buying gold in April to diversify their strategic portfolio, data from the International Monetary Fund showed on Monday.Demand in India, the world's biggest gold market, was subdued as the peak wedding season cools off, and its central bank is taking more steps to curb gold purchases.
On Monday, the Reserve Bank of India said banks would not be allowed to give loans against units of gold exchange-traded funds and gold mutual funds.
Crude oil prices reversed its previous day’s losses, rising by 0.11 per cent on Tuesday at the domestic markets as acceleration in Chinese industrial company profits last month eased concerns over a slowdown in manufacturing in the nation which raised the demand outlook for the fuel. Net profit of Chinese industrial companies rose 9.3 per cent to 437 billion yuan in April 2013, year on year, up from a 5.3 per cent annual rise in March 2013, government data showed. Net income of Chinese industrial enterprises rose 11.4 per cent to 1.61 trillion yuan in the first four months of 2013. At the MCX, crude oil futures for June 2013 contract were trading at Rs. 5,224 per barrel, up by 0.11 per cent, after opening at Rs. 5,226 against the previous closing price of Rs. 5,218. It touched the intra-day high of Rs. 5,238 till the trading. (At 10.37 AM today). However, gains were curbed in the midst of conflicting reports regarding the health of Saudi Arabian King Abdullah. Reports suggest that Saudi Arabia’s King Abdullah bin Abdulaziz may be clinically dead, because the king has not been seen in public recently. Gains were also limited as OPEC is expected to keep its production target steady at a meet this week at 30 million barrels per day, raising concerns that the market may be oversupplied.
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