RSBL Gold Silver Bars/Coins

Monday, 27 August 2012


Precious metals seemed to be on fire this week. Gold reaching its life time high of Rs. 31,300 (999 purity per 10gm) in the physical market where as silver and platinum reached Rs. 57,000(per kg) and  Rs. 29,600 (per 10gm) respectively.

Bright chances of another round of QE3 led to sharp rises in gold and silver prices where as labour unrest in Lonmin’s mine in South Africa resulted in the platinum volatility.

In the international market, gold rose to a 16-week high to USD 1,665.09 an ounce and silver gained by 2.5 percent to USD 30.57 an ounce

Rise in international gold prices affected the domestic prices too. Internationally, gold reached its highest level in the past three months. Rising gold rates along with the appreciation of the rupee against the dollar led to this huge leap. Indian rupee appreciated to 55.41 against the US dollar on Thursday. 

Minutes of the FOMC meeting resulted in rallying of gold and silver. The FOMC meet brightened the chances of another quantitative easing plan. US economy has been growing but at a very slow pace. The homes sales report and jobless claims report didn’t seem to be much positive. These stats will strongly affect bullion prices.

Moreover Central bank has been buying 150 tonnes of gold. Along with his there is huge SPDR ETF buying too.

Gold has always been considered as a safe haven asset and during these times of uncertainty investors are turning to gold to be on the safer side. Where traders and stockists are concerned, they too have started piling up their stocks ahead of the biggest festive and marriage seasons of the year (September- December) in India.

Looking at platinum, this metal has also shown great volatility in this week. The unrest at Lonmins mine in South Africa has spread to two other mines. Platinum prices continued to soar due to concerns of supply trouble after 44 people died during strikes at a pit owned by Lonmin.
About a fifth of global platinum production is idled in South Africa resulting in supply shortage and soaring prices.

It seems likely that these protests will affect the other precious metals too including the gold mining sector.

Outlook for gold is bullish with the yellow metal is expected to reach $ 1800 an ounce by September end.

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