Gold Market and Commodity Trade updates
October 21st 2011 16:28
The Gold Market recovered 1% from 2 weeks low on Friday 21 Oct. The support came from the weaker Rupee against Dollar. Earlier, due to European debt crisis Gold traded 2 weeks lower before Friday, when it recovered again on Friday.
The MCX (Multi Commodity Exchange) was 0.82% up for December delivery at Rs.26, 103. Gold which performed as risked investment commodity and it was in strong demand from Asian consumers which supported the premiums to its highest from the starting of the year.
Spot Gold traded up 0.3% on 21st Oct, 2011 at US$ 1,622.70. The euro has fallen by nearly 1% this week, the investors pulled out of gold this week and the prices of gold has fallen by 2.5 percent to 4 percent this week which traded in all major currencies.
In India, the drop in Rupee played an important role in the price of Gold. The weaker Rupee against dollar was due to high demand of Dollar by the importers. Rupee was at its 30 months low this Friday. The traders were seen stocking the Gold for the coming festival, resulting in more physical buying of Gold.
In International market, investors showed more interest in gold backed exchanges products like ETFs, which added up the holdings and most of the inflow was into European based funds. Global Gold ETFs was recorded at its largest net increase in three months.
The uncertainty about the Euro Zone’s resolution on its debt crisis is likely to help investor in making profits.
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