RSBL Gold Silver Bars/Coins

Tuesday, 14 August 2012


Gold and silver prices continued to move upwards as both precious metals edged up on Thursday. These metals rose despite the decline of the Euro and perhaps due to the appreciation of other “risk currencies” including Aussie dollar and Canadian dollar. The recent U.S reports didn’t seem to have much of an effect on the financial markets: U.S jobless claims declined 6k to 361k; U.S trade balance deficit (goods and services) declined to $42.9 billion in June 2012. This news may have contributed to the appreciation of the USD.

Gold edged up again on Thursday by 0.26% to $1,620.2; Silver rose by 0.08% to $28.10. During the month, gold edged up by 0.35%; silver, by 0.66%
This entire week, commodity prices played around the following lines- 

Great Britain PPI input- UK Producers Price Index for Input Prices rose by 1.3 per cent in July in monthly terms up from a revised 2.9 per cent decrease in June, while the PPI Input Prices annually fell by 2.4 per cent in July up from a revised 3 per cent decrease in June, according to the Office of National Statistics. The monthly PPI input prices increased less than the expected 1.5 per cent increase and annually dropped more than the forecast at 1.50 per cent decrease. Furthering this, precious metals edged up.

US Federal Budget Balance- Uncertainty over whether the US Federal Reserve and European Central Bank will take further steps to boost their economies has so far deterred a stronger move in gold prices, and bullion remains below last September’s record high at around $1,920 an ounce. Should the Fed signal it intends to implement a third round of monetary easing at the next meeting, it would probably boost precious metals, which are seen as a hedge against inflation.

Chinas trade Balance-  China’s General Administration of Customs said exports grew just one percent in July year-on-year to $176.9 billion, while imports rose 4.7 percent to $151.8 billion, cutting the trade surplus to $25.1 billion from $31.7 billion in June.

The data follow results on Thursday showing Chinese retail sales, industrial output and inflation eased in July, indicating the export-driven economy was feeling the effects of Europe’s debt crisis lowering demand in the key market.

China New loans-  China's new loans in July came in at 540 billion yuan, a weaker reading than the 920 billion yuan from June. The latest data missed analysts' estimates of 701 billion yuan. This resulted in an upward movement in gold.

The U.S federal budget report signalled the progress of the U.S economy and, in turn, affected the USD and commodities prices. The Canadian employment report affected the Canadian dollar that tends to be linked with bullion rates.  The Chinese reports also affected commodities prices as they have shown a sharp change. These reports have shown a decline in trade activity and new loans which in turn suggested that China’s economy is slowing down and this slow groth has adversely affected bullion rates. 
Finally, the ongoing decline of the Euro during the week could continue to curb the rally of bullion rates, while the rise in Aussie dollar and other “risk currencies” is contributing to the recovery of precious metals prices.
With a lack of major, market-moving fundamental news this week, precious metals market watchers are focusing more on the key outside markets. The U.S. dollar index was higher in Thursday, which did limit the upside in the precious metals. Meantime, crude oil prices were slightly higher on Thursday, which did somewhat limit selling pressure in gold and silver. Oil bulls have upside near-term technical momentum after prices Wednesday hit a 2.5-month high. The precious metals markets will continue to look closely at how these two key “outside markets” trade on a daily basis.

In the Indian markets, there was a news leak of increase in duty on gold. However these were rumors and nothing concrete has been announced yet.
Onset of the festive season has seen rise in demand but it is comparatively low. High gold prices and economic turmoil are creating this slug.
Mean while, Gold and silver are still zigzagging with an unclear trend as they haven’t shifted from their respective price range. 

Monday, 6 August 2012


The month of August began with a downfall for precious metals. Bullions rates didn’t do much as both gold and silver prices scaled down. Other commodities like oil and US stock markets declined too.

Precious metals were seen hovering around the declaration of results of the FOMC meeting that concluded on Wednesday.

Gold Prices fell below $1600 an ounce Wednesday afternoon in London, reversing the gains of the last week, following better-than-expected US jobs data. Silver Prices meantime dropped as low as $27.21 an ounce – also back to where they were last week.

However, after the weeks downfall, gold and silver managed to edge up by Friday.
Gold for December delivery advanced $18.60, or 1.2%, to settle at $1,609.30 an ounce on the Comex division of the New York Mercantile Exchange. The metal declined 0.5% on the week, however. Silver for September delivery rose 81 cents, or 3%, to settle at $27.80 an ounce. Silver rose 1.1% on the week. A strong nonfarm payroll report combined with a positive ISM Services print supported the day's gains. Nonfarm payrolls came in at 163K versus the expected 100K while nonfarm private payrolls added 172K against expectations of a 105K increase. The unemployment rate of 8.3% ticked up from its previous reading of 8.2%. 

Lower dollar adds further glaze Bullion metal prices ended higher at Comex on Friday, 03 August 2012 snapping a three-day losing streak after U.S. employment data showed a rebound in hiring last month and as the dollar traded weaker

The Fed said during the FOMC statement that it will continue swapping $667 billion of short-term debt with longer-term securities to lengthen the average maturity of its holdings, an action named ‘Operation Twist’. The central bank will also continue reinvesting its portfolio of maturing housing debt into agency mortgage-backed securities. The Fed left unchanged its statement that economic conditions would likely warrant holding the benchmark Fed funds rate near zero “at least through late 2014.”

Given the active central bank calendar, every fresh data point will be analyzed for how it might affect the likelihood of additional stimulus programmes. According to Wednesday’s ADP Employment report the US economy added 163,000 private sector nonfarm jobs in July – over a third more than the consensus forecast among analysts. It is therefore not surprising that gold dipped after the release of mostly positive US macroeconomic reports over the past 24 hours.

The FOMC meeting will be followed by the meetings of European Central Bank of England on Thursday, where all analysts are eyeing on more stimulus following by a declaration made by ECB president last week.

Mario Dargi told in a meeting in London , last week, that the ECB stood ready to do whatever it takes to save the euro, which means that the banks is preparing to re enter the bond markets.

Asian markets too traded with a negative bias on Wednesday mainly on the back of weak manufacturing data from china, which expanded at the slowest pace in eight months

The outlook for precious metals in the medium-term, however, remains positive because the central banks will have to undertake an expansive monetary policy sooner or later. They are just waiting for the right time; they don't want to use the last cartridge too soon