“The crisis will continue on balance to be good for gold as long as it leads to a positive environment for investment demand,” GFMS Chairman Philip Klapwijk said. “It is the case at the moment and will continue to be the case over the rest of 2009.”
Gold advanced for the day as dollar weakness increased the alternative investment appeal as Investor bet for the Investment assets as safe haven against inflation.
Gold prices are supposed to reached the psychological $1,000 level this week .
As Gold prices remain on higher side, the Indian Bullion market is falling jewellery demand and plunging imports of the yellow metal. But scrap gold sales in India are picking up all thanks to high prices. One of the largest consumers and importers of yellow metal in the world, for the last five months of 2009 remain around 47tonnes, far below the imports of the yellow metals that the country used from past years. In 2008, India’s Gold imports had stood around 400 tonnes.
According to figures from the Bombay Bullion Association, Gold imports in India have been dropping since prices are on higher side. In May Gold imports fell to around 15 tonnes.
As spoke to Precious metal Analyst in Newyork ,He said International interest (in US and other Top economies) is rising with ETF inflows in recent days , news of some big players in ETFs, and a large US insurance company also Investing in Gold (which is first )
Gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, were unchanged at a record 1,134.03 metric tons yesterday. The fund’s holdings have increased 45 percent this year.
Silver climbed to highest in almost 10 months . silver rose 0.9 % to $16.115 an ounce, extending yesterday’s 2.4 % rise . The metal earlier reached $16.20, the highest since Aug,08.
Crude oil slide to 68.55 on Tuesday as investors booked profit as the prices soars from last 6 days . prices dropped to as low as 67.5 in early trading later rose to 69.5 after US ‘s home sales data before settling at 68.55
Trading call for the day !
Today’s we expect Precious Metals should trade sideways , as Indian market expecting gold prices to lift downside which will take positive factor for Imports on gold. But as we are saying international Factors are supported gold prices on higher side , which could break psychological $1,000 level this week .
We expect gold prices has major support of $965 above $990 its retreat to new high.
As expected on silver we maintain $16 level, sees good momentum upside from here on around $16.7 level.
Crude prices seems profit booking at certain level, we expect prices to trade in range of $67– 70 level .
Happy Trading !!
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