Business Daily from THE HINDU group of publications
Friday, Nov 17, 2006

Cross Currency

Group Sites

Agri-Biz & Commodities - Gold & Silver
Gold eases back on profit-taking

G. Chandrashekhar

Mumbai , Nov. 16

After surging to nearly $630 an ounce on the back of speculation that China might buy gold as part of foreign exchange asset diversification, the market has eased back as expected.

Despite weaker-than-expected US economic data, the metal is now pressured by a fall in Euro/USD and widespread profit booking.

According to experts, gold is likely to trade in a consolidation mode over the short term. As oil prices remain confined to a narrow trading band and the dollar looks to be stabilising, the recent speculative enthusiasm — fuelled by talks of possible gold purchase by Central Bank of China — seems to have faded away.

The technical picture too seems to be supportive of a price correction.

According to analysts, the daily situation looks overbought. $614-610 is seen as short-term target and support.

Among the platinum group metals, Johnson Matthey's Platinum 2006 interim review suggests the market is set to post another year of deficit in 2006, although small, due to a combination of strong demand from the auto-catalyst sector and healthy supply increases particularly from South Africa.

JM is more circumspect on palladium where it believes the market balance is likely to deteriorate this year relative to 2005 largely owing to a fall in demand from the jewellery sector.

More Stories on : Gold & Silver

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Wheat prices continue to scale new highs

Easterlies' impact felt on coastal TN
Of virus, seeds, patents, competition
Deriving the commodity advantage
Supply concerns emerge in rubber
Higher tea volume on offer at Coonoor sales
Tea prices rule easy at Coimbatore
Gold eases back on profit-taking
Rising zinc prices cause concern to steel units
Super Spinning plans foray into organic cotton cultivation
Swarnandhra jute mill begins production
Citigroup Venture to buy stake in K.S. Oils
Cardamom prices move up
Buying interest buoys pepper futures
In great demand
Flawed economic policies blamed for agrarian crisis
`Farm growth vital to reduce poverty'

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line