MCX Gold Trading Prices for October Delivery shot up in early morning trade to Rs. 31091, a New Record high for the Indian Markets, with MCX Silver Prices for September delivery rising more in % terms to Rs. 58,445 – As alerted on Saturday regarding upside openings for Monday. Silver & Gold Futures in the Commodity Trading markets have been on a rise & have consistently been on an upside move from the past 6 sessions. Silver and Gold Trading Prices opened higher after closing the week with record gains on better physical demand and also on expectations of further easing. Gold Prices gained 3.3%, Silver Prices shot up 9.3% & for the week, the SPDR Gold Trust exchange-traded fund (GLD) is up over 3%, which was the least dynamic of the gains posted by other popular plays in precious metals. The iShares Silver Trust ETF (SLV) is up 9% for the week while the Global X Silver Miners ETF (SIL) is ahead 7.4% for the week. The US Commodity Futures Trading Commission said speculators raised their net long positions in US Gold Trading futures to 140,126 lots in the week ended August 21, the highest since the beginning of May.
Gold Trading along with Silver & other Base Metals can now be expected to remain relatively subdued till Tuesday night & is expected to again pick up momentum from Wednesday onward. Friday, 31 August may witness a very high volatility filled Commodity Trading session. No major Economic Data also expected to be released in these 2 days, except the German IFO Business Climate Index on Monday & the German CPI (Quarterly & Yearly Basis) on Tuesday. Sporadic movements in Silver and Gold Trading may be seen on news & developments on the continuing European woes. Spanish Prime Minister Mariano Rajoy’s austerity drive will intensify this week as a sales-tax increase tightens the squeeze on consumers whose spending is already plummeting. The move to raise the value-added tax Sept. 1 will follow a flurry of data showing the pressure building on household finances in the Euro area’s fourth-biggest economy, home to a third of its unemployed. Reports due include mortgage lending today, a breakdown of second-quarter GDP tomorrow, inflation on Aug. 30 and retail and current-account data on Aug. 31, reported Bloomberg. GDP data tomorrow may show how consumer spending already suffered during the second quarter. The report from the national statistics institute, INE, follows a July 30 estimate showing Spain’s recession worsened with a 0.4% contraction. The government forecasts domestic demand will fall 4% this year, more than twice last year’s drop. Gold Trading may see a small decline on negative news emerging from the Eurozone.
Gold Trading & Momentum Triggers for the week seen in US Eco Data & Fed’s Speech:
We will have the important Quarterly GDP numbers on Wednesday, More importantly the Initial Jobless Claims coming in on Thursday & finally the ever crucial news on Fed Chairman Ben Bernanke’s conference from the Jackson Hole symposium on Friday 31 August. If the Fed does not give any hint or clarity on the timing of the further easing (QE3) this Friday, Gold Futures Prices may sharply correct in the coming week. Till then, Gold Futures October contract (short positions) shifting to December contracts may provide the necessary support, especially as there are some significant short positions still being unwound in many of these markets. There can be fireworks in Gold Trading Prices on the weekend as Bernanke’s speech next Friday comes on 31 Aug (which is a contract closing day for Silver, Copper & other Base Metals) with a long weekend holiday for the U.S. markets – Labor Day on Monday 3 Sep. Possibility of QE3 will keep the US dollar under pressure for now, especially with sentiment towards Europe expected to hold up at least until early September. Comex Silver Futures for September delivery entering contract closing week may also keep market movements extremely volatile, as short covering in large upside movements, may trigger further forced buying.
Central Banks increase Holdings in Gold Reserves:
Europe’s largest Gold producer Turkey raised its Gold Reserves by almost a fifth in July taking its total holdings to 9.3 million troy ounces. According to International Monetary Fund’s monthly statistics report,Turkey’s Gold holdings rose by 18% or 1.4 million troy ounces. The reserve is worth $15.5 billion based on a gold price of $1,670 per oz. Spot bullion hit four-month highs on Thursday. Russia’s central bank increased its Gold Reserves by around 0.6 million troy ounces last month, taking its total holdings to 30.1 million ounces, the bank said earlier this week. Other central banks with significantly smaller Gold Reserves -Belarus, Shri Lanka, Moldova, Ukraine, Kyrgyz Republic and Kazakhstan- added to their reserves in July, but the increases were incremental. Kazakhstan, which purchased 45,000 troy ounces, was the largest. Guatemala and Mexico sold a small portion of their Gold Reserves stockpiles.
MCX Silver Prices climbed today (till 1pm) to Rs. 58,445 from Saturday’s close of Rs. 57,508. MCX Gold Trading Prices shot up to a new record in Indian Markets to Rs. 31,091 from Saturday’s close of Rs. 30,947.