Spot gold punched to a record high above $1,126 an ounce during today’s early trading session as investors sought out bullion as a hedge against a weak dollar, Silver too displayed some firmness during last trading session and endedalomst a percent higher.
IN FOCUS:
- The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,113.833 tonnes as of Nov. 13, down 0.61 tonne from the previous business day.
- Central banks will be net buyers of gold this year as they diversify away from the U.S. dollar, global commodities investment fund BlackRock said on Monday in comments that helped drive bullion to fresh record highs.
- The price of gold coins in Iran fell by more than 4 percent after the Central Bank started supplying newly-minted coins to the market, Iranian newspapers reported on Sunday. At a coin price of 2.8 million rials, the total value of the planned intervention would amount to roughly $1.4 billion. It was not immediately clear over what time period the new coins would be supplied to the market.
- The world's largest silver-backed exchange-traded fund, the iShares Silver Trust, said its bullion holdings rose 30.56 tonnes, or 0.3 percent, from the previous business day to a record 8,954.08 tonnes as of Nov. 13.
- South Africa, formerly the world's biggest gold producer and now number three, said its gold output dropped 9.3 percent in volume terms in September. Sales of scrap gold are increasing in India, the world's biggest bullion consumer last year, dealers said, as higher prices encourage consumers to sell gold back to the market.
- The chief executive of Barrick Gold Corp, the world's biggest gold miner, told the Financial Times gold may ease from current highs, although the chances of prices falling below $900 an ounce are slim.
FUNDAMENTAL OUTLOOK:
Gold futueres is trading at 1125$-1127$/ounce today, the yellow metals is expected to take a cue during afternoon session from EZ’s inflation data, any improvement in those numbers will lent a good support to gold prices to move up further.
