Gold futures ended two percent higher on Monday, posting their biggest daily gain in three months, as a combination of oil rally, dollar weakness and strong U.S. data boosted bullion's investment appeal. Silver too rallied in last trading session and ended almost 3% higher on COMEX outperforming gold.
IN FOCUS
- The world's largest gold-backed exchange- traded fund, SPDR Gold Trust, said its holdings stood at 1,111.922 tonnes as of Feb. 1, unchanged from the previous business day.
- The world's largest silver-backed exchange- traded fund, the iShares Silver Trust, said its silver holdings stood at 9,355.98 tonnes as of Feb. 1, down 0.3 percent from the previous business day.
- The dollar steadied on Tuesday after falling away from six-month highs on a basket of currencies, while the Australian dollar retained broad gains ahead of a widely expected interest rate hike later in the day.
- Russian gold production rose 11.2 percent year-on-year in 2009 to 205.2 tonnes (6.6 million ounces) in line with expectations, the Russian Gold Industrialists' Union, the main industry lobby, said on Monday.
- Gold retail volumes in Dubai fell in January as consumers remained sceptical about the yellow metal's fluctuating price level, retailers told on Monday.
- Toronto-listed Volta Resources expects a pre-feasibility study at its Kiaka gold mine in Burkina Faso to start in second half of 2010, with first production at the mine seen in 2014, the CEO said on Monday.
- Since 2007, China has been the world's biggest gold producer. However,the nation may now also have taken over India to become the world'slargest gold consumer.Although official figures have yet to be released, it is estimated that 2009 saw a demand of 450 tonnes from China, a steep increase on the nation's 2008 demand of 395.6 tonnes.
FUNDAMENTAL OUTLOOK
Precious metals are trading a tad higher on COMEX on the back of mild weakness in Dollar. We expect dollar to further weaken during today's trading session as we expect some risk appetite I the market. buying at dips is recommend in precious metals during the day.
