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Finance & Economics
harreymartin
Joined: July 2013
Posts: 2
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Posted: July 10, 2013 7:55 AM

Gold prices have witnessed continued decline in the second quarter of 2013 on heavy ETF redemptions which has totaled 650 tons so far. Strength in dollar, increase in interest rates has adversely impacted the yellow metal.

By John Godson
Gold and silver prices at India’s Multi Commodities Exchange (MCX) witnessed selling pressure ahead of Bernanke’s speech. The commodities witnessed short covering and bargain hunting for last few days as weak Indian rupee capped losses.

Gold prices have witnessed continued decline in the second quarter of 2013 on heavy ETF redemptions which has totaled 650 tons so far. Strength in dollar, increase in interest rates has adversely impacted the yellow metal. Investment demand has weakened while jewellery demand and drop in scrap sales could support gold.

Federal Reserve meeting minutes are likely to be released by 11.30 PM IST, followed by Ben Bernanke speech around 1.40 AM IST. Investors will scrutinize the minutes of the Fed's June 18-19 meeting for further hints regarding the direction of U.S. monetary policy.

MCX gold for August delivery is trading up Rs 149 at Rs 26,159 per 10gm with gain of 0.57% as of 01.03 P.M IST and silver for September delivery is trading up Rs 132 per kg with a gain of 0.33% as of 01.12 P.M IST.

Positive correlation with stock markets has impacted metal prices. Hence, positive sentiments from stock markets may put pressure on gold and silver prices.

Indian Rupee has depreciated to 60.16 against dollar capped further fall in dollar denominated commodities.

Gold and silver on Comex witnessed a range bound phenomenon. Weakness in dollar index accounted for further fall in metal prices.

On COMEX, gold is trading down at $ 1,245.7 per troy ounce and silver is trading at $19.19 per oz as of 02.33 am CT.

mcx free tips: http://www.sharetipsexpert.com/Commodity_trading_tips.aspx

MCX Gold August may trade bearish; short covering may be expected 25,900-26,100 levels due to existing demand from jewelers.

-- Support: 25910, 28400
-- Resistance: 26230, 26300

MCX silver July may trade with bearish bias tracking gold prices. Buying sentiments may be witnessed at lower levels.

-- Support: 40210, 40010
-- Resistance: 40350, 40400

Release of U.S wholesale inventories and India’s monetary aggregates data may put further pressure on gold and silver prices.

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