India Midcaps, Gold, Adani, Bharti Airtel

 India Midcaps, Gold, Adani, Bharti Airtel 

Gold

Gold 

Can there be a gold sell off ?

Gold, which has been in a corrective mode for a little less than a year, seems poised for another selloff as the dollar reaches its breakout level. The US dollar and gold have an inverse relationship as long as panic and inflation have not gripped the markets. Europe has been looming over the horizon for quite some time, but it has not created a panic in the market yet. Also, with the general slowdown in the global economy, inflation is not on the horizon except in a few emerging countries. If this scenario continues we could see a further selloff in gold on a dollar rally.

Gold

 Gold 

Investing in Gold ?

Gold - good time to accumulate

Gold prices present a good opportunity for long-term investors to accumulate the precious metal as its overall outlook remains positive amid the current economic uncertainty.

Gold prices, which had collapsed in the last week of September, have recovered significantly and are now hovering around Rs 27,000 per ten grams. Going forward, fresh buying by stockists and jewellers to meet the ongoing festival demand is likely to further fuel the uptrend

Gold demand may explode

Demand for gold exchange traded funds (ETF) in India is likely to "explode" as investors get accustomed to "click-and-park" mode of investing, shying away from sagging stock markets and as high inflation eats into bank savings, a trade body head said on Thursday.

"Clearly people are seeing convenience in the form of ETF, going through the same broker which he has for equities," said Ajay Mitra, managing director - India and the Middle East, World Gold Council (WGC).

Gold - Should you invest now ?

Gold - Should you invest now ?

Gold's roller coaster ride

The move sparked the latest round of volatility in gold, which has since traded in a more than $100 range. Seeing the gold price lurch down or up $50 in as many minutes has become a fairly regular feature of the market over the last few weeks.

"I think the market will go higher, but a $100+ correction cannot be ruled out, especially if the dollar decides to strengthen even further," said Saxo Bank senior manager Ole Hansen. "A pretty strong stomach might be required short-term."

Financial markets around the world have been subjected to extreme price movements as investors grow increasingly unnerved by the ability of Eurozone leaders to solve the regional debt crisis that has engulfed Greece, Portugal and Ireland and now threatens Italy and Spain.

'Fear and Love Make Gold Strong'

An interview with Frank Holmes, by Jeff Clark, BIG GOLD

For the BIG GOLD annual gold forecast survey published in January, Jeff
Clark surveyed seven gold experts and nine top economists and fund
managers, along with Doug Casey himself, to provide their best insight on
what to expect in 2011 and how to invest.

Gold Loan - how does that work ?

You've just seen an apartment you would really like to book, but don't have enough cash for the down payment. Where would you raise the cash? If you're thinking personal loan, do consider a loan against your jewellery first.

Loans against jewellery, which several finance companies and banks offer today, allow you to make use of the gold and jewellery you have safely tucked away in your home or in a bank locker. If you're in a bind, taking out a loan against jewellery may prove to be the quickest route to raising cash.

These loans come with processing time of less than a day, virtually no documentation and flexible payment options. You don't even have to state the purpose for which the loan is required.

How to get it

The mechanics of a jewellery loan are simple enough. You pledge your jewellery with the bank, which then sanctions loans based on the value of your jewellery. When you repay the loan, you reclaim your jewellery. Application and sanction of the loan can be completed in a single day, allowing immediate access to the cash.

Not all banks offer loans against gold. But among those who do are Indian Bank, Axis Bank, Canara Bank, HDFC Bank and Syndicate Bank. Financial companies such as Manappuram Finance and Muthoot Finance specialise in such loans.

Gold loans are typically much cheaper than personal loans or loans you may take on your credit card.

Interest rates range from 12 to 15 per cent per year. Rates vary slightly between banks; for instance, Indian Bank charges a 13.25 per cent interest rate while Axis Bank charges less than 12 per cent. Muthoot Finance has rates from 1 per cent a month, while it is 0.96 per cent a month at Manappuram Finance.

Gold is accepted in the form of jewellery or as coins by these lenders. If it is in the form of ornaments, only the gold component in the ornament will be considered.

No value is ascribed for gems or stones, should there be any in the jewellery. Silver, platinum or any other metal cannot be pledged, either.

You also cannot hope to get a loan for the full value of your jewellery (or the cost at which you bought it). First, the jewellery will be checked for purity and the lender will arrive at a value based on what the internal appraiser says.

Then, loans may be provided for 70 to 85 per cent of the value of this gold, while others specify the rate per gram at which they provide loans. This varies from time to time according to gold price changes.

The quantum of loan you can avail has minimum and maximum limits. HDFC Bank, for instance, will consider a minimum of seven sovereigns – that is 56 grams – of gold for loans. Other banks specify minimum loan amount rather than grams.

Maximum limits vary wildly; Axis Bank has an upper limit of Rs 2,00,000, while HDFC Bank caps loans at Rs 10,00,000. Finance institutes such as Manappuram Finance and Muthoot Finance don't specify minimum limits, though the former has a ceiling of Rs 1 crore.

Payments and tenures

Besides limiting loan amounts and value of gold, banks make gold loans for a short period. Repayment periods range from six months to two years. Jewellery loans do not require regular EMI payments.

As a rule, payments need to be made at the end of the tenure, although they can also be made at any time with partial payment options during the period of the loan. Some banks, however, require regular servicing of the interest if not the principal. Until the entire sum is repaid, the gold will be held by the lender.

Loans against gold hold an edge over other loans due to the ease and speed of processing. Banks have appraisers at select branches who value the gold, regardless of any valuation you may have previously done. Based on that appraisal, loan amounts are determined.

Sanctioning the loan and transfer of the amount is then a simple process that takes less than an hour in most cases. Note that, for immediate access to the loan amount, it is beneficial to have an account with the bank. Amounts given through cheques can be used only after the cheque is cleared, which take at least a couple of days.

Documentation is the next area where jewel loans score. All that is required are proofs of identification and address. Income levels, bank statements, salary slips and others that are required for most other loans are not needed here. This contributes to the minimal process time.

Penalties

Payment of loans in full before the end of the tenure does not trigger any penalty. However, should you fail to repay even at the close of the loan period, interest will be charged at a higher rate, usually 2 per cent above the loan rate.

The gold will be auctioned off by the bank, but the amount of sale proceeds that would come to you would depend on the terms of the agreement you've signed.

The jewellery pledged will be held by the bank till the time the loan is entirely repaid; part payments do not lead to partial release of the jewellery.

Some banks require that you hold an account before applying for a jewellery loan. Also, application and processing of these loans are not carried out at all branches. Should the price of gold fall drastically during the period of the loan, to the extent that it fails to cover the amount outstanding, some banks require payment of the difference. Again, this depends on the terms of the loan agreement. However, given the relatively short term of gold loans, a very steep fall in gold prices may not be likely.

via BL

Gold continues record rally

There is no stopping the gold bulls, as the US dollar continued to be under pressure amid prospects for a fragile economic recovery in the world's biggest economy. A weak greenback tends to bolster the appeal of gold as a safe haven investment. The precious metal had gained 5% last week on fund buying after the Reserve Bank of India (RBI) bought 200 tons of gold from the International Monetary Fund (IMF) and the dollar weakening further. Gold has gained more than 25% in 2009, driven by persistent weakness in the US currency, and growing doubts over its future as the world's reserve currency.

China's Prime Minister Wen Jiabao exhorted the US to keep its deficit in control to stabilize the dollar exchange-rate, according to media reports. China is the largest foreign holder of US Treasurys. Since early March, the US dollar index, which tracks the dollar's value against a basket of major rivals, has fallen about 15%, in part due to the Federal Reserve's loose monetary policy. Meanwhile, the IMF signaled that record low US interest rates are funding global carry trades and the dollar is still overvalued as concerns mount that new financial imbalances are forming.

Some countries expressed concern that the increasingly weak dollar might hamper recovery. US Treasury Secretary Timothy Geithner reiterated his belief in a strong dollar. Responding to the IMF’s comment that the yuan was "significantly undervalued", China’s central bank said that its foreign-exchange policy would take into account "capital flows and major currency movements".

Gold demand surges as investors turn to wealth preservation

Fears of future inflation and ongoing financial uncertainty saw investors continue to flock to gold in the first quarter of 2009, seeking out its proven wealth preservation qualities. Total demand for gold in Q1’09 rose 38% year on year to 1,016 tonnes, representing a 36% rise in value terms to US$29.7bn.

According to figures published today by World Gold Council (WGC) in its Q1’09 Gold Demand Trends report, identifiable investment demand for gold, which includes exchange traded funds, (ETFs) and bars and coins, was the major source of growth in the quarter, reaching 596 tonnes, up 248% on Q1’08.

The figures, compiled independently for WGC by GFMS Limited, reveal a record level of investment into ETFs with demand soaring 540% to 465 tonnes at a value of US$13.6bn.

Net retail investment (total bar and coin demand) remained highly robust, rising 33% year on year to 131 tonnes, despite some bar and coin dishoarding in eastern markets as investors took profits. Germany was the single biggest bar and coin market in Q1’09, where demand rose 400% on Q1’08 to 59 tonnes, with inflation concerns being a key buying motivator. Switzerland was the second largest bar and coin market, up 437% to 39 tonnes on Q1’08, followed by the US, rising 216% to 27.4 tonnes.

The impact of the recession on consumer discretionary spending continued to take its toll on both jewellery and industrial demand. Gold jewellery demand was down 24% on year earlier levels, with most countries suffering a decline as consumers responded to the high and volatile gold price, which reached record levels in some countries, compounded by difficult economic conditions. China bucked this trend recording a positive 3% growth in jewellery demand. This reinforces the view that China’s economy, although unquestionably suffering from a sharp deceleration, nonetheless remains resilient relative to most other nations.

Total demand in India, traditionally the world’s largest gold market, declined significantly under pressure from record rupee prices and a major deterioration in the domestic economy. Demand fell 83% on year earlier levels to just 17.7 tonnes.

Industrial demand for gold in Q1’09 was 31% down on Q1’08, with the electronics sector being the major contributor to this decline. End user demand for electronics goods has been badly affected by the downturn in consumer spending on items such as laptops and mobile phones.

Aram Shishmanian, CEO of World Gold Council, commented:

“There has been a seismic shift away from capital appreciation towards wealth preservation and we believe this trend will define investment behaviour in the next decade. Gold, as one of the few assets that has held its value during the current economic crisis, has been sought out by investors who are drawn to its proven protective attributes as well as safeguarding themselves from the erosive effects of future inflation.

“The shift in the balance of demand that we have witnessed this quarter, where the gold price has risen despite a severe drop in jewellery and industrial demand, perfectly demonstrates the robust nature of gold’s fundamental supply and demand dynamics. While jewellery demand is unlikely to return to more positive territory in current market conditions it remains a key market driver. Affinity for gold jewellery remains and we are confident that demand will grow as consumer confidence and purchasing power returns.”

Demand in the Middle East in Q1’09 was down 26% on Q1’08 to 53.6 tonnes. Both jewellery and investment recorded similar declines in percentage terms (-26% to 49.5 tonnes and -28% to 4.1 tonnes respectively). With 90% of total consumer offtake in the region in the form of jewellery, this decline was largely down to the combination of the high gold price and a tightening of consumer spending.

In the US, total demand for gold was 15% higher than in Q1’08 at 55.2 tonnes, driven by retail investment demand which rose 216% to 27.4 tonnes. Conversely, difficult economic conditions continued to weigh heavily on jewellery demand, which fell 30% to 27.8 tonnes.

Total supply surged 34% on the same quarter last year to reach 1,144 tonnes in Q1’09. With a 55% increase on Q1’08 to 558 tonnes, the primary source of the increase was scrap gold coming back into the market as high prices and difficult economic conditions encouraged record levels of recycling. Also contributing to the increased supply was a sharp slow down in the levels of producer de-hedging (from -129 in Q1’08 to -10 in Q1’09). Mine production was relatively stable, increasing by just 3% to 560 tonnes while lower levels of central bank sales, which fell 54% to 35 tonnes, had a dampening effect.

The full First Quarter 2009 Gold Demand Trends report can be viewed at: http://www.research.gold.org/supply_demand/

Gold shines on rising crude oil and falling dollar

Gold prices witness the largest one day gain in almost four months

Rallying crude oil prices and the lower dollar sent yellow metal higher on Friday, 06 June, 2008. Previously during the week, strength in the dollar as well as recent weakness in oil had combined to dull investment demand for gold, which is often used as a hedge against inflation.

Comex Gold for August delivery rose $23.5 (2.7%) to close at $899 ounce on the New York Mercantile Exchange. It was gold’s highest one day gain in almost four months. For the week, gold prices ended higher by 0.8%. Last month, in May, it ended with a gain of higher by $22.5 (2.5%). On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped since then.

This year, gold prices have gained 7.3% till date against a 7% drop for the dollar against the euro. Before May, for April, prices closed lower by 6.3%. For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%.

On Friday, Comex silver futures for July delivery rose 26 cents (1.5%) to $17.46 an ounce. Silver has gained 17% in 2008 till date. It finished 3.5% higher for the week.

Silver prices ended the month of May 2008 with a gain of 2.7%. For April, it closed lower by 5.5%. Silver had gained 16% in Q1. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 13%. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years.

At the currency markets on Friday, the dollar index, which tracks the greenback against a basket of six major currencies, stood at 72.368 compared with 73.120 ahead of the employment data. Against the dollar, the euro jumped to $1.5772 from $1.5584 before the report.

On Friday, 06 June, the U.S. government reported the unemployment rate in May jumped to 5.5%, the highest since October 2004 and the biggest increase in seasonally adjusted unemployment in 33 years. The same pressured the dollar immensely.

Dollar weakness typically benefits dollar-denominated commodities, such as gold and crude oil, because it makes them cheaper for holders of other currencies. On the other hand strong dollar reduces the appeal of the metal as alternate source of investment.

In the energy market on Friday, oil prices shot higher by almost $11 a barrel on Friday, scoring their biggest one-day gain in dollar terms as talk about a potential Israeli attack on Iran combined with a slide in the U.S. dollar to send prices to their highest levels on record. July crude climbed $10.75 (8.4%) to close at $138.54 a barrel on the New York Mercantile Exchange on Friday. That was an all-time closing high. It climbed as high as $138.80 during the regular trading session. The contract climbed 8.8% for the week on Nymex.

Gold and silver rise to new highs

Tumbling dollar and spiraling crude impart all the shine to precious metal prices

Dollar stumbling to a new fresh low against its rival currencies sent precious metals to new highs today, Tuesday, 6 November, 2007. Crude prices spiraling above $97/barrel also lent a hand in this rising price of bullion metals. Gold prices touched highest level I 28 years. Silver price too was at highest level in 26 years.

Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices. Rising crude increases inflationary pressures. On the other hand strong dollar reduces the appeal of the metal as alternate source of investment.

Comex Gold for December rose $12.6 (1.6%) to close at $823.4 an ounce on the New York Mercantile Exchange today. Earlier in the day, prices touched $827.2/ounce. It was the highest price after a record $873 on 21 January, 1980.

Comex Silver futures for December delivery rose 59.5 cents (4%) to $15.38 an ounce. The metal has climbed 19% this year. For the month of October, prices gained 3.7%.

Gold had climbed 18% in the past two months (Sept-Oct) as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. In October itself, gold prices gained 6%. The metal's October rally was the fourth straight monthly gain.

In 2006, silver had jumped 46% while gold gained 23%.

In the currency market today, the dollar traded down against the euro after sinking to new record lows, as investors weighed ongoing credit woes and surging crude-oil futures. The dollar index, which tracks the greenback against a basket of six major currencies, dropped 0.5% at 76.05.

Crude oil price today climbed as high as $97.1 a barrel today.

On 31 October, 2007, Federal Reserve cut the fed funds rate by a quarter-point to 4.50% and said that the recent spike in commodity prices may put renewed upward pressure on inflation. Prior to that, Federal Reserve had cut interest rates by half percentage point on 19 September, 2007.

In recent times, the weakening of dollar have continued to affect the price of the metal. Dollar had been witnessing a free fall since Federal Reserve cut interest rates in September. The U.S. currency has lost almost 9.5% against the euro this year and has fallen 4% since the September rate cut.

Gold prices have jumped 15% during the third quarter and it is the most since 1999. The yellow metal has climbed 29% this year. Since the rate cut in September, prices have gone up by almost 12%.

At the MCX, gold prices for December delivery closed at Rs 10,398 per 10 grams. The closing price is Rs 132 (1.3%) higher as against previous closing price. Prices rose to a high of Rs 10,429 per 10 grams and fell to a low of Rs 10,250 per 10 grams during the day’s trading.

At the MCX, silver prices for December delivery closed Rs 527 (2.7%) higher at Rs 19,854/Kg. Prices opened at Rs 19,300/kg and rose to a high of Rs 19,970/Kg during the day’s trading.

Gold's oustanding returns

With just a few days left for Diwali and Dhanteras, gold prices have already zoomed to new peaks and marketmen expect them to soar further well past Rs 11,000 per 10 gram level as the festivities approach closer.

Adding to the festive spirit, return on gold investments have also grown by around 34 per cent in the last one year as the precious metal became a 'preferred choice' option for a large number of investors in the country.

The gold prices rose to a new 18-month high of Rs 10,310 per 10 gram on Saturday and with expectations of buying activity improving analysts see a further rise of about Rs 600-800 by Dhanteras, considered an auspicious day for buying gold and jewellery.

"Since disposable incomes of average Indians have gone up significantly, gold has become a preferred choice of investment for a large number of investors," Assocham President Venugopal Dhoot, said.

Gold imports would grow by 250 tonnes by FY'08, he said. Speaking at an Associated Chambers of Commerce and Industry of India (Assocham) function here, Dhoot called for much-needed investments into the country to fully exploit its mineral resources while making India a vibrant trading hub for the gold and diamond businesses.

Since the economic slowdown in America is unlikely to be arrested in the immediate future, its impact will be harsh on dollar which would continue to weaken while rupee would get stronger, he added.

This could inspire gold investors, particularly in a country like India to invest more in gold for security reasons, ASSOCHAM said in an assessment on possible gold prices during Diwali and subsequently in the marriage seasons.

Gold prices are already more than Rs 1,300 higher than the last Diwali levels. On Diwali day last year, the gold price stood at Rs 8,975 per ten gram.

Besides festival demand, a sharp surge in international prices has also added to the rally in the domestic markets. The gold prices in New York touched a 28-year high of 808.5 dollars last week.

"Weakening dollar and rising crude oil and recent Federal Reserve interest rate cut also enthused the market sentiment. Gold rose 14.80 dollar to 808.50 dollar an ounce on the Comex division of the New York Mercantile Exchange, a level last seen in January 1980, while the precious metal in India witnessed levels above Rs 10,000 in May 2006," Commodity brokerage firm Karvy Comtrade analyst Harish G said.

"With the depreciating value of rupee, the spur in the prices of gold in the domestic market is not that high as compared to last year when it ruled Rs 10,730 per 10 grams in May," he said.

The domestic prices are likely to touch Rs 10,500 levels on Diwali day this year while it may hit 850 dollar an ounce in the overseas market, the Karvy official said.

Gold prices touch 28 year high

Precious metals close mixed as crude prices just shoot up

Precious metal prices closed mixed today. Gold prices increased but silver prices fell at New York. Gold prices increased to record level since 1980. Prices increased after crude futures touched all time high of $86/barrel and the greenback weakened against its major rival currencies boosting the appeal for the precious metal. Gold has traditionally been used as a safe-haven asset against rising inflation.

Comex Gold for December delivery rose $8.4 (1.1%) to close at $762.2 an ounce on the New York Mercantile Exchange today, Monday, 15 October, 2007. The price crossed $765 during intra day trading. Gold gained 0.9% last week and was the metal’s 7th weekly gain in eight weeks.

Comex Silver futures for December delivery fell 4.8 cents (0.4%) to $13.855 an ounce. The metal has climbed 7.1% this year.

Crude prices increased today and reached an all time high after fresh tension surfaced between Turkey and Iraq. On the other hand, dollar weakened again against the euro ahead of the G7 meeting this week and on speculation interest rates in Europe will rise faster than in the U.S.

In recent times, the weakening of dollar have continued to affect the price of the metal. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices.

Dollar had been witnessing a free fall since Federal Reserve cut interest rates by half percentage point. The U.S. currency has lost 6.9% against the euro this year.

Gold prices have jumped 15% during the third quarter and it is the most since 1999. The yellow metal has climbed 19% this year. Since the last rate cut, prices have gone up by more than 3.5%.

Last week, Citigroup raised its forecast for the average gold price this year to $684 an ounce from $672 and increased the 2009 estimate to $800 from $750. The 2010 estimate was raised to $820 from $594. The forecast for 2008 was left unchanged at $750.

At the MCX, gold prices for December delivery closed at Rs 9663 per 10 grams. The closing price is Rs 74 (0.8%) higher as against previous closing price. Prices rose to a high of Rs 9684 per 10 grams and fell to a low of Rs 9594 per 10 grams during the day’s trading.

At the MCX, silver prices for December delivery closed Rs 29 (0.16%) lower at Rs 18,279/Kg. Prices opened at Rs 18,340/kg and fell to a low of Rs 18,241/Kg during the day’s trading.

Gold shines back after faltering

But prices witnesses first weekly drop after six weeks of rally

Gold prices rose for the second consecutive day today after dollar weakened paring earlier gains in the day. Silver prices also rose today. After initially strengthening, dollar lost steam today after September employment report showed in line gains for the month and big upward revisions of previous months.

Gold prices fell by 0.4% for the week. It was the first weekly drop after a six-week rally.

In recent times, the weakening of dollar have continued to affect the price of the metal. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices.

Earlier during the middle of this week, drop in crude oil and a continuation of the strengthening of the dollar against other currencies continued to hurt gold's appeal as an inflation hedge. Gold prices slipped on Tuesday and Wednesday, earlier this week.

Comex Gold for December delivery climbed $3.4 (0.5%) to close at $747.2 an ounce on the New York Mercantile Exchange today, Thursday, 5 October, 2007. It recovered from a low price of $732 an ounce. On Monday, 1 October, gold had climbed to an intraday high of $755.7. That was the highest intra day price seen since the last 28 years.

Comex Silver futures for December delivery rose 1 cents (0.01%) to $13.49 an ounce. The metal has climbed 4.3% this year.

The dollar rose as much as 0.7% after a report showed payrolls grew by 110,000 in September after an 89,000 increase in August. But then, the currency slipped. The currency has been witnessing a free fall since Federal Reserve cut interest rates by half percentage point.

Gold prices have jumped 15% during the third quarter and it is the most since 1999. The yellow metal has climbed 17% this year.

As per Nymex data on Wednesday, Gold warehouse inventories rose by 83,102 troy ounces to stand at 7.2 million troy ounces and silver supplies rose to 133.1 million troy ounces, up 294,757 troy ounces.

At the MCX, gold prices for December delivery closed at Rs 9522 per 10 grams. The closing price is Rs 47 (0.5%) higher as against previous closing price. Prices rose to a high of Rs 9538 per 10 grams during the day’s trading.

At the MCX, silver prices for December delivery closed Rs 27 (0.15%) higher at Rs 17,998/Kg. Prices opened at Rs 17,980/kg and went to a high of Rs 18,105/Kg during the day’s trading.

Gold gains after two days of decline

Dollar’s decline once again pushes up gold

After slipping for two consecutive days, gold prices rose today as dollar weakened against its rival currencies. Since the past couple of days, drop in crude oil and a continuation of the strengthening of the dollar against other currencies continued to hurt gold's appeal as an inflation hedge.

Comex Gold for December delivery climbed $8.1 (1.1%) to close at $743.8 an ounce on the New York Mercantile Exchange today, Wednesday, 4 October, 2007. It recovered from a low price of $726.5 an ounce. On Monday, 1 October, gold had climbed to an intraday high of $755.7. That was the highest intra day price seen since the last 28 years.

Comex Silver futures for December delivery rose 3 cents (0.2%) to $13.50 an ounce. The metal has climbed 4.4% this year.

The dollar climbed today after erasing its earlier gains against the euro after new orders data for U.S made factory goods showed that it dropped a greater-than expected 3.3% in August, the largest decline in factory orders in seven months. The dollar index, which tracks the performance of the dollar against a basket of currencies, fell 0.2% at 78.40.

In recent times, the weakening of dollar have continued to affect the price of the metal. Investor sentiments are boosted by the fact that gold and silver were alternate sources of good investment in the face of declining dollar and rising energy prices.

Gold prices have jumped 15% during the third quarter and it is the most since 1999. The yellow metal has climbed 17% this year.

As per Nymex data on Wednesday, Gold warehouse inventories rose by 83,102 troy ounces to stand at 7.2 million troy ounces and silver supplies rose to 133.1 million troy ounces, up 294,757 troy ounces.

At the MCX, gold prices for December delivery closed at Rs 9475 per 10 grams. The closing price is Rs 12 (0.12%) lower as against previous closing price. Prices fell to a low of Rs 9319 per 10 grams during the day’s trading.

At the MCX, silver prices for December delivery closed Rs 54 (0.3%) lower at Rs 17,971/Kg. Prices opened at Rs 17,988/kg and went to a low of Rs 17,651/Kg during the day’s trading.

Gold slides down but silver crawls up at New York

Dollar’s gains push the yellow metal marginally lower

Gold prices continued to drop today at New York. A drop in crude oil and a continuation of the strengthening of the dollar against other currencies continued to hurt gold's appeal as an inflation hedge. But silver prices climbed up today.

Comex Gold for December delivery fell $0.60 (0.08%) to close at $735.7 an ounce on the New York Mercantile Exchange today, 3 October, 2007. On Monday, 1 October, gold had climbed to an intraday high of $755.7. That was the highest intra day price seen since the last 28 years.

Comex Silver futures for December delivery rose 20 cents (0.2%) to $13.47 an ounce. The metal has climbed 4.1% this year.

The dollar climbed today after reports on employment and service industries suggested the U.S. economy is weathering the housing slump. The Institute of Supply Management’s index showed modest expansion on the non-manufacturing side of the U.S. economy during September.

On the currency markets today, the dollar extended gains against the Japanese yen, the British pound and the euro. The Dollar Index, which tracks the performance of the greenback against a basket of currencies, rose 0.3%. Crude prices continued to trade below $80/barrel.

Till last Monday, 1 October, the weakening of dollar had continued to affect the price of the metal. Investor sentiments were boosted by the fact that gold and silver were alternate sources of good investment in the face of declining dollar and rising energy prices

Gold prices have jumped 15% during the third quarter and it is the most since 1999. The yellow metal has climbed 14.8% this year.

As per Nymex data on Monday, Gold warehouse inventories were unchanged at 7.1 million troy ounces and silver supplies rose to 132.8 million troy ounces, up 250,716 troy ounces.

At the MCX, gold prices for December delivery closed at Rs 9463 per 10 grams. The closing price is Rs 176 (1.8%) lower as against previous closing price. Prices fell to a low of Rs 9418 per 10 grams during the day’s trading.

At the MCX, silver prices for December delivery closed Rs 443 (2.3%) lower at Rs 18,025/Kg. Prices opened at Rs 18,421/kg and went to a low of Rs 17,911/Kg during the day’s trading.