Gold price today: Latest updates

Thursday, September 26, 2013: Gold prices failed to extend yesterday's gains and moved lower by Rs 110 to Rs 30,105 per ten grams in futures trade early Thursday as rupee strengthened against the dollar at the Interbank Foreign Exchange market.

At the Multi Commodity Exchange (MCX), gold for delivery in October declined by Rs 110 to Rs 30,105 per ten grams as against its previous close of Rs 30,215 .

Similarly, silver benchmark delivery dropped by Rs 251 to Rs 48,920 per Kg.

Gold price in overseas markets, which normally set price trend on the domestic front, traded in a narrow range and largely held on to overnight gains of nearly 1 percent as an upcoming Chinese holiday kept investors on the sidelines and their focus turned towards the US debt ceiling talks. 

Spot gold last quoted at USD 1,333.80 an ounce, down 0.02 percent, after gaining 0.8 percent in the previous session. 

In New York, gold for December delivery rose USD 19.90 to settle at USD 1,336.20 an ounce on the Comex division of the NYMEX yesterday.

Meanwhile, snapping a four-day losing streak, both precious metals gold and silver rebounded in Delhi bullion market on emergence of buying at existing lower levels to meet the coming festive season demand amid a better global trend.

While gold gained Rs 320 to Rs 30,545 per ten gram after losing Rs 585 in last four sessions, silver recovered by Rs 390 to Rs 49,330 per kg, snapping Rs 2,260 losses of four days.

Mumbai

Standard gold of 99.5 percent purity moved up by Rs 160 to close at Rs 29,980 per 10 gm from Tuesday's closing level of Rs 29,820 .

Pure gold of 99.9 percent purity also gained by Rs 160 to end at Rs 30,130 per 10 gm from Rs 29,970.

Similarly, silver ready (.999 fineness) escalated by Rs 50 to finish at Rs 49,715 per kg as compared to Rs 49,765 yesterday.

Delhi

Gold of 99.9 and 99.5 percent purity rebounded by Rs 320 each to Rs 30,545 and Rs 30,345 per ten gram, respectively, while sovereign held steady at Rs 25,000 per piece of eight gram in limited deals.

Silver ready rose by Rs 390 to Rs 49,330 per kg and weekly-based delivery by Rs 690 to Rs 49,480 per kg. 

Silver coins, however, held steady at Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces. 

Futures Trade (MCX)

At the Multi Commodity Exchange (MCX), gold for delivery in October declined by Rs 110 to Rs 30,105 per ten grams as against its previous close of Rs 30,215 .

Similarly, silver benchmark delivery dropped by Rs 251 to Rs 48,920 per Kg.

International markets

Spot gold last quoted at USD 1,333.80 an ounce, down 0.02 percent, after gaining 0.8 percent in the previous session. 

In New York, gold for December delivery rose USD 19.90 to settle at USD 1,336.20 an ounce on the Comex division of the NYMEX yesterday.

Gold ETF

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.07 percent, or 0.6 tonnes, to 909.59 tonnes on Monday. 

Here are the city wise gold and silver rates:

(Gold rates per 10 gm/Silver rates per Kg)

Mumbai

GOLD: 29,970 30,130 (+160) / SILVER: Rs 49,715 (+325) 50,040

Delhi

GOLD: Rs 30,545 (+320) / SILVER: Rs 49,330 (+90)

Chennai

GOLD: Rs 29,795 / SILVER: Rs 48,860

Kolkata

GOLD: Rs 30,570 / SILVER: Rs 48,900

Bangalore

GOLD: Rs 30,478/ SILVER: Rs 49,500

Hyderabad

GOLD: Rs 30,100 / SILVER: Rs 50,000

Courtesy: Zee News

Gold may gleam on wrangling over US borrowing limit

~M.R. SUBRAMANI

CHENNAI, SEPT 26:  Gold prices on the domestic spot and futures

markets are likely to gain on Thursday as US Congressmen wrangle over raising $16.7 trillion limit for government borrowing.

According to US Treasury Secretary Jack Lew, the US will exhaust its borrowing limit on October 17. One of the solutions being contemplated is tampering with the healthcare programme introduced in 2010.

Key US data

Key US data later in the day could be mixed with jobless claims rising and GDP being better than forecast. Pending home sales and Euro Zone M3 money supply are other factors holding the key.

Currency moves could have an impact as a strong rupee against the dollar makes import of gold, crude oil and vegetable oils cheaper.

Spot gold, gold futures

In early Asian trading, spot gold rose to $1,332.68 an ounce and gold futures maturing in December to $1,332.60.

In the domestic market on Wednesday, gold for jewellery (99.5 per cent purity) ended higher at Rs 29,980 and pure gold (99.9 per cent purity) to Rs 30,130. On MCX, gold October contracts could rise above Rs 30,000.

Crude oil

Crude oil prices may head lower after a report from the US showed rise in inventories due to lower demand.

Brent crude contracts maturing in November fell to $108.15 a barrel and West Texas Intermediate crude for the same month to $102.33.

With grain prices rising on supply concerns, the oils and oilseeds complex could trade sideways.

New export orders for US soyabean and mixed harvest reports are bullish factors, while Indian harvest and possibility of higher palm oil inventories are the bearish factors.

Soyabean, crude palm oil

Chicago Board of Trade soyabean contracts maturing in November ruled higher at $13.13 a bushel. On Bursa Malaysia Derivatives Exchange, crude palm oil contracts maturing in December opened lower at 2,280 ringgit or $707 a tonne.

Wheat, corn prizes

Prices of wheat and corn (industrial maize) could head higher as China plans to increase the import to check the rising domestic prices and fears of frost in Argentina are causing concern over crop in the South American nation.

Wheat for delivery in December on CBOT rose to $6.71 a bushel. Corn, gaining in tandem with wheat, was up at $4.53 for contracts maturing in December.

Courtesy: The Hindu Business Line

 Gold likely to yo-yo on uncertainty over stimulus package

[Editor: There is no Uncertainty in the Stimulus Package, except the media generated Hoax. It is to be understood that hereto, Dr.Ben Bernanke and his deputies stressed that the US Fed might start tapering, once the data gives positive indication. So, there is no question of the US Fed removing QE in October, 2013, since the figures do suggest the same. Those who cannot read between the lines only can make such wild guesses, that the US Fed would start to limit its bond buying program from October, 2013. Moreover, Pharma (Opto Circuits Ltd, CMP: Rs.22.30) and IT companies are still looking good at this point of time, apart from Gold Loan Companies like Manappuram Finance Ltd (Rs.15.20)]

Photo: www.afaqs.com

Chennai, Sept 25:  Gold prices on the domestic spot and futures market are likely to trade sideways on Wednesday as uncertainty over end to the US stimulus programme continues to worry the market.

Agencies reported a key decision maker as saying that the US Federal Reserve will begin cutting its $85-billion-a-month stimulus package before the year-end.

Elsewhere, US consumer confidence dropped as also rise in US home prices slowing in July.

Durable goods, home sales data

Data on US durable goods orders and new home sales later in the day could shed some light on which way the economy is heading and probably, provide some direction to the yellow metal.

Kharif crop forecast

The Indian Farm Ministry has said that the kharif or summer crop this year will be the highest over the last five years.

It remains to be seen see how the rural population reacts to a higher income, coming in at least from higher support price for foodgrains and major oilseeds. Most probably, this factor could cushion any steep fall in gold, for now.

Spot gold, gold futures

In early Asian trading, spot gold ruled at $1,324.74 an ounce and gold futures maturing in December at $1,324.90.

In the domestic market on Wednesday, gold for jewellery (99.5 per cent purity) edged marginally up at Rs 29,820 for 10 gm and pure gold (99.9 per cent purity) to Rs 29,970.

On MCX, October gold contracts could rule between Rs 29,500 and Rs 30,000.

Rupee Vs dollar

In the Indian context, the rupee’s movement against the dollar could also have a role to play since a stronger Indian currency makes the import of gold, crude oil and vegetable oils costlier.

Having dropped over the last four sessions, crude oil could edge higher on Wednesday, especially on speculation that US crude stockpiles could have dropped. Data on the stocks are expected later in the day.

Crude oil prices

Brent crude contract maturing in November was up at $108.78 a barrel and West Texas Intermediate for the same month at $103.27.

The oils and oilseeds complex is likely to head north on threat of frost in the US Midwest region besides bets that rains in that region are not enough to boost the crop. A rise on soyameal prices, too, could help the complex scale up.

Soyabean, crude palm oil

Chicago Board of Trade soyabean November contracts rose to $13.18 a bushel. Crude palm oil December contracts on Bursa Malaysia Derivatives Exchange opened higher at 2,310 ringgit or $716.50 a tonne.

Wheat, corn prices

With wheat prices rising above the 50-day moving average, technically they are likely to rise. Fundamentally, China has increased its import of US wheat and inspections for its exports are also higher.

On the other hand, Argentina, going through a dry period, could see frost in the main-growing area, threatening the standing crop further.

Corn (industrial maize), on the other hand, could drop as a higher harvest looms.

CBOT wheat for delivery in December rose to $6.59 a bushel and corn for delivery the same month to $4.49 a bushel.

Courtesy: The Hindu Business Line

Gold price today: Latest updates

Extending their early losses, gold prices dropped by Rs 230 to Rs 29,644 per ten grams in futures trade Tuesday as market participants offloaded their positions in tandem with a weakening trend overseas.

At the Multi Commodity Exchange (MCX), gold for delivery in October fell by Rs 230 to Rs 29,644 per ten grams as against its previous close of Rs 29,874.

Similarly, silver benchmark delivery moved lower by Rs 753 to Rs 48,640 per Kg.

Gold price in overseas markets, which normally set price trend on the domestic front, failed to hold early gains and moved southwards on renewed worries that the US Federal Reserve will begin cutting its bond-buying purchases as early as next month.

Spot gold last quoted at USD 1,326.36 an ounce, up 0.4 percent, after falling over 3 percent over the past three sessions.

In New York, gold for December delivery fell by USD 5.50 to USD 1,327 an ounce on the Comex division of the NYMEX.

Meanwhile, both gold and silver fell for the third straight session in Delhi bullion market on lower demand against sustained selling in line with a weak global trend.

While gold fell by Rs 250 to Rs 30,250 per ten grams, silver lost Rs 475 to Rs 49,025 per kg on reduced offtake by jewellers and industrial units.

Mumbai

Standard gold of 99.5 percent purity slid by Rs 210 to end at Rs 29,790 per 10 gm from last Saturday's closing level of Rs 30,000.

Pure gold of 99.9 percent purity also dipped by a similar margin to close at Rs 29,935 per 10 gm from Rs 30,145.

Silver ready (.999 fineness) slumped by Rs 510 to conclude at Rs 49,765 per kg as against Rs 50,275 last weekend.

Delhi

Gold of 99.9 and 99.5 percent purity fell further by Rs 250 each to Rs 30,250 and Rs 30,050 per ten grams, respectively. The yellow metal had lost Rs 310 in the previous two sessions. Sovereign shed Rs 100 to Rs 25,000 per piece of eight gram.

Silver ready dropped by Rs 475 to Rs 49,025 per kg and weekly-based delivery by Rs 575 to Rs 48,925 per kg. The white metal had lost Rs 1,700 in last two sessions.

Silver coins, however, held steady at Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces in limited deals.

Futures Trade (MCX)

At the Multi Commodity Exchange (MCX), gold for delivery in October fell by Rs 230 to Rs 29,644 per ten grams as against its previous close of Rs 29,874.

Similarly, silver benchmark delivery moved lower by Rs 753 to Rs 48,640 per Kg.

International markets

Spot gold last quoted at USD 1,317.20 an ounce, down USD 6.10 or 0.46 percent, after falling over 3 percent in last three sessions.

In New York, gold for December delivery fell by USD 5.50 to USD 1,327 an ounce on the Comex division of the NYMEX yesterday.

Gold ETF

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.07 percent, or 0.6 tonnes, to 909.59 tonnes on Monday.

Here are the city wise gold and silver rates:

(Gold rates per 10 gm/Silver rates per Kg)

Mumbai
GOLD: 29,935 (-210) / SILVER: Rs 49,765 (-510)

Delhi

GOLD: Rs 30,250 (-250) / SILVER: Rs 49,025 (-475)

Chennai

GOLD: Rs 30,415 / SILVER: Rs 49,000

Kolkata
GOLD: Rs 30,610 / SILVER: Rs 49,500

Bangalore

GOLD: Rs 30,315/ SILVER: Rs 49,500

Hyderabad

GOLD: Rs 30,100 / SILVER: Rs 50,500

Courtesy: Zee Business

Physical buying may help gold edge up

Indian imports, affected by a July 22 RBI notification stipulating that at least 20 per cent of the yellow metal brought into the country should be re-exported, are likely to resume anytime now.

HENNAI, SEPT 24:  Gold prices on the domestic spot and futures market are likely to look up a little on hopes that buying in China and India may increase. However, uncertainty over the US Federal Reserve’s move on the $85-billion-a-month stimulus package is proving to be a market dampener.

Indian imports, affected by a July 22 RBI notification stipulating that at least 20 per cent of the yellow metal brought into the country should be re-exported, are likely to resume anytime now. With kharif harvest beginning and festivals ahead, rural consumers could begin buying gold.

On the other hand, buying in China is seen up ahead of holidays starting October 1. Gold purchases in Shanghai exchange increased on Monday.

But holdings of gold in electronic form in exchange-traded funds dropped. On Monday, SPDR Trust, world’s largest gold exchange traded fund, reported that its holdings dropped below 910 tonnes to 909.59 tonnes.

Data on Germany business climate, US Consumer confidence, US chain store sales and housing index could have some influence on the precious metals market later in the day. In India, any rise in the rupee’s value against the dollar will make imports of gold, crude oil and vegetable oils cheaper.

Spot gold, gold futures

In early Asian trade, spot gold rose to $1,326.63 an ounce and gold futures maturing in December at $1,326.60.

In Mumbai bullion market, gold for jewellery (99.5% purity) dropped to Rs 29,790 and pure gold (99.9% purity) to Rs 29,935.

On MCX, gold October contracts could try to scale back to Rs 30,000.

Crude Oil

Crude oil is likely to rule flat as production is rising in Nigeria and Libya. Besides, speculation that the UN could pass a resolution that will ensure that there will be no military attack by the US on Syria. This will safeguard crude oil supplies from the West Asian region.

Brent crude contracts maturing in November ruled at $108.46 a barrel and West Texas Intermediate crude for delivery the same month at $103.42.

Oils and Oilseeds

The oils and oilseeds complex could gain on bargain hunting after prices slipped last week. Besides, demand for US bean and drop in inventories could hold up the counter.

Chicago Board of Trade soyabean contracts for delivery in November rose to $13.15 a bushel. On Bursa Malaysia Derivatives Exchange, crude palm oil contracts maturing in December opened higher at 2,324 ringgit or $724 a tonne.

Grains complex

Projections of higher imports by Chinese crop agency by at least one million tonnes are likely to drive wheat prices higher in the grains complex. This is despite higher bearish bets on the grain.

Rain in North America, threatening Canadian wheat, and dry weather in Australia and Argentina, which could affect the yield, are other bullish factors aiding wheat.

On the other hand, corn (industrial maize) is under pressure after exports from the US last week dropped to less than 18 million bushels against over 20 million bushels the previous week.

CBOT wheat contracts for delivery in December increased to $6.56 a bushel and corn for delivery the same month edged marginally up at $4.54 a bushel.

Natural rubber

Natural rubber prices on spot and futures markets could be under pressure as crude prices head lower. Fears of higher imports by the user industry are also dragging the counter.

On the Tokyo Commodity Exchange, rubber to be delivered in February slipped to 277.3 yen or Rs 176 a kg.

(This article was published on September 24, 2013)

Courtesy: The Hindu Business Line

PIMCO makes bullish gold bets after Fed, sees bottom on prices

[Editor: The SEBI is over-regulating the market in places where it is not required, like unnecessarily putting stocks in the T-group and at the same time creating such illogical circuit limits as 2% and 5%. It is inactive in places where it should be or else recent sordid affairs regarding MCX Ltd and Financial Technology Ltd would not have happened. It is because of their high handedness, that the market is not going anywhere or there is no uniform rise in the share price in all space, like we used to witness in 2004-2007. These people should all be sacked and replaced with those who have some power to think independently. Since, the last 5-years, the regulators, the government of India and the RBI have turned the Indian Share Market, into a JOKE. Really, what to say, about such mediocrity! I do not understand what is the use of having 5% circuit limits in stocks when in the F & O Segment there is no such thing!! It seems some clowns have been entrusted to oversee the activities of the Indian Stock Market]

NEW YORK: US asset manager PIMCO expects that the Federal Reserve's continued bond-buying program will put a floor under gold prices for the rest of the year, PIMCO's commodities portfolio manager said.

Nic Johnson, who helps manage $30 billion in commodity assets for PIMCO, said he placed bullish bets on gold.

 The Fed's decision on Wednesday to delay the expected cut in monetary stimulus has materially reduced the downside risk for gold, Johnson said in an email to Reuters on Thursday. The Fed said it would wait for more evidence of solid growth before starting to reduce its monthly purchases of $85 billion in bonds.

As investors went on their biggest one-day buying spree in gold in over a year on Wednesday, Johnson sold some gold put options in expectation that bullion has bottomed out for now.

Put-selling is an option strategy allowing the option writer to pocket the premium in exchange for bearing the risk that gold prices might fall below the strike price. Puts give the holders the right to sell at an agreed price within a specified time.
Still, uncertainty over the timing and size of the Fed's tapering will likely keep prices relatively rangebound until the end of the year, Johnson said. The Fed's stimulus program has kept interest rates low and bolstered bullion prices for the past four years.

Buying by Asian investors and central banks will offset continued liquidation of exchange-traded funds, with the Fed actions capping gold's downside, he said.

"It is unclear if gold will extend rally, but given the action of the Fed I would say it is unlikely that gold will retest its three-year lows near $1,180 an ounce set in late June," Johnson said.

However, expectations that the Fed's delay would rekindle fund interest in bullion as a hedge against inflation and US dollar depreciation had stalled by Friday. Gold prices fell over 2 per cent to around $1,330 an ounce.

The impact on gold of any tapering by the Fed is still not clear. Some traders say it is already priced into the market after Fed Chairman Ben Bernanke raised the prospect of tapering in May. Others say lack of inflation after years of money printing by central banks has undermined gold's appeal.

Bullion is a traditional inflation hedge, particularly in cases of actions by central banks.

Johnson cited lower US real interest rates for gold's gains after the Fed announcement on Wednesday. Benchmark 10-year Treasury yields were 2.85 per cent before the Fed's announcement and have fallen to 2.73 per cent on Friday.

Institutional and retail investors have exited gold this year, reversing years of buying as they braced for the Fed ending its stimulus, putting bullion on track for a 20 per cent loss this year, its worst in over a decade.

 After gold's historic two-day selloff in April, Johnson told Reuters the firm had increased its precious metals exposure in its commodity accounts.

Pacific Investment Management Co., a unit of European financial services company Allianz SE well known for its bond investments, had $1.97 trillion in assets as of June 30, according to the company's website.

Courtesy: The Economic Times

MCX gold can consolidate sideways

[Editor: Gold has always been and will continue to remain as safe instrument of choice when people lack confidence in their governments. Lacking confidence doesn't only mean that they’re not certain that equities will perform, but it also may mean that they don’t trust their government, that it will operate in their best interests...in such a scenario Gold can be best alternative both as an investment and a trading option. The Chinese demand for Gold is constantly on the rise and it is anticipated that its gold demand may overtake India as the largest consumer in the near future. Physical demand for gold coins is still very strong globally.  Moreover, India’s traditional strong festive season and demands due to ensuring wedding season, followed by Diwali, may keep the Gold prices buoyant. However, in Comex, Gold has stiff resistances at $ 1375 and $ 1390, whereas supports can be found at $ 1350 & $1320]

In a surprise move, the US Federal Reserve retained its stimulus measures in its policy meet last week. Gold hit $1,363.7/ounce on Wednesday, up 4 per cent and closed the week at $1,325/ounce. The news that existing home sales in the US increased 1.7 per cent in August to an annual rate of 5.48 million units against the expected 5.25 million units dragged price. Silver ended the week at $22.2/ounce, down two per cent.

SUBDUED APPETITE

Investors’ appetite for gold didn’t return. The US SPDR gold trust’s holdings were reported at 910.19 tonnes on Friday, marginally lower from the previous week.

In the domestic market, gold reversed its downward track and recorded a gain despite rupee’s appreciation. MCX gold hit Rs 30,544/10 gram on Thursday and closed the week at Rs 29,277/10 gram, up one per cent. MCX silver ended at Rs 49,306/kilogram, up marginally. Rupee hit 61.64 against the US dollar on Thursday, but later lost steam and ended at 62.26.

MCX saw good trading interest in gold and silver futures contract. In gold, the average daily volume was 1.54 lakh contracts, up from the previous week’s average of 1.14 lakh contracts. In silver futures, the average volume was 1.59 lakh contracts, up 35 per cent over the previous week.

MARKET NEXT WEEK

Analysts do not see a change in Fed’s stance of continuing on stimulus at least till November. In August, the jobless rate in the US was 7.3 per cent, much higher to Fed’s comfort level of 6.5 per cent. The US GDP growth estimates have also been revised downwards to 2-2.3 per cent from around 2.3-2.6 per cent earlier. But, gold investors can’t take much comfort.

The yellow metal will remain volatile till a decision is taken on raising the debt ceiling. Failure to arrive at a consensus, though, may give gold a leg up. Next week, the flash PMI Manufacturing numbers on Monday, consumer confidence numbers on Tuesday and new home sales numbers on Wednesday will also be watched. Thursday will see the quarterly GDP estimates and the crucial jobless claims numbers from the labour department. For domestic market gold traders, rupee’s move will be key to gains/loss in portfolio. In his first monetary policy review on Friday, the RBI Governor Raghuram Rajan reduced the MSF (marginal standing facility) rate by 75 basis points reversing partially the liquidity tightening measure taken in July to save rupee.

TRADING TIPS

As indicated in our previous column, MCX gold cut its first support around Rs 31,160/10 grams last week. However, it reversed at Rs 29,277 much before the second support at Rs 28,743 on positive cues from the Fed. Now, it looks like the metal may hover sideways for sometime and then drop to Rs 29,200. The next support on the downside would be Rs 28,800.

The metal needs to gain momentum and break Rs 31,400 to see a trend reversal. For this, a drop in rupee may be of help.

MCX silver too behaved in a manner that we had forecast and cut the support at Rs 49,239/kilogram to hit a low of Rs 48,488. In the coming week, the metal may weaken further to Rs 46,713 and Rs 43,587. If price manages to rise and cut Rs 52,863, it could hit Rs 55,566.

rajalakshmi.sivam@thehindu.co.in

Courtesy: The Hindu Business Line

Investor sentiment on gold sees upswingSentiment is expected to remain bullish

[Editor: Till yesterday, this financial daily was asking all not to invest in GOLD; but today suddenly their views changed....Huh!! Now will this paper pay for the losses of those who shorted GOLD, reading the outlook of their analysts? But, on the flip side, some investors/ traders never learn from their mistakes of trusting a financial daily blindly. Once they see, a news they jump to either sell or buy the scrip, without understanding what it actually means--this is the irony. This blog  has been maintaining BULLISHNESS on GOLD, since the last few weeks]

The US Federal Reserve’s decision to continue bond-buying has lifted investor sentiment for gold and silver. After the Fed announcement, both metals went up over five per cent in the US market. In Indian market also, both metals rose, but the rise was capped because of appreciation in the dollar value of the rupee.

In the Mumbai spot market, gold climbed 0.9 per to Rs 30,280 per 10g, while silver moved up 1.8 per cent to Rs 51,815 a kg. Spot gold internationally was trading at $1,367.51 per ounce, up 0.2 per cent, while spot silver was trading flat at $22.97 per ounce. Gold on MCX in day trade stood at Rs 30,424 per 10 g, compared with Wednesday’s close of Rs 29,990 per 10g. Silver was at Rs 51,185 a kg, compared to Wednesday’s close of Rs 49,577 a kg.

Market participants say by continuing bond-buying, the Fed has ensured the dollar remains weak, which means money will flow to risker assets like equities and gold.

“Large part of liquidity will go towards equities in the US, but investors will also buy gold as it has been trading lower and international gold could go up to $1,450,” says Gnanasekar Thiagarajan, director-Commtrendz Research. “In India, however, weaker dollar means stronger rupee, which will cap the rise in gold prices.”

He believes base metals are expected to see offtake and hence prices will remain high which will also benefit silver. Because of the rising rupee, the gold price in the Indian market might not go up fast. Gnanasekar puts the Indian price target at Rs 31,000 per 10g.

Reena Rohit, an analyst with the Angel Commodities says: “Easy liquidity has been good for gold price and that was reflected today after yesterday’s (Fed) announcement. Investors are back to the market.”

While from domestic demand side, inauspicious fortnight (pitru paksha) for gold buying is beginning from Friday, retail customers will stay away from the market for the time being. However, “traders have started buying gold to remain prepared for the upcoming demand season,” says Rajiv Popley, director, Popley Group.

On the other hand, base metals traded on a negative note on Indian markets despite commodities moving up internationally, due to appreciation in the rupee.. 

Courtesy: Business Standard

WINNING STROKES: THINK DIFFERENT

Candle Stick Chart of Punj Lloyd Ltd

Manappuram Finance Ltd as expected moved up today, after Religare Securities Ltd recommended the scrip as a buy for a short term target of Rs.25. CLICK HERE. According to my closed sources, who refused to be named, "There would be better numbers going ahead, as the price of gold is buoyant. In case the company wants to recover its loan amount and forced to sell the collateral, there would less hassles; as prices are much higher, than in June, when Bullion fell a two-year low. Value of the collateral going up always helps in the lending business".  Gold futures closed at Rs.30690.00 per 10 grams in MCX yesterday. Manappuram said in a March, 2013, stock exchange filing, declining gold prices may trigger an increase in defaults and an “under-recovery of revenue on certain gold loan portfolios.” The company’s gross bad debt rose 21% in the three months ended June 30 from a year earlier. However, this is expected to come down drastically now as the gold prices are above Rs.30, 000 per 10 grams. I think the scrip should now race towards Rs.31-32. The stock exchanges should remove 5% circuit limit for the stock or put a minimum 10% circuit limit. In these kinds of scrips 5%, circuit limit is simply a hoax. 

Allied Digital Services Ltd hit the buyer freeze in the late afternoon trade. The scrip should be moving towards the next target of Rs.22-23. The company would be one of the biggest beneficiaries of the fall in INR Vs USD. Those who are holding the scrip should average it on all declines. 

With INR recovering from all time lows, both the stocks VIP Industries Ltd and SAIL recommended as a strong buy moved up yesterday in the Indian bourses. While VIP Industries Ltd touched Rs.52.05 intraday, SAIL touched Rs.51.35. Both the scrips will gain further if INR appreciates more against the USD. Last week Indian  Foreign Minister, Salman Khurshid said in an interview to a business channel that the oil minister will on 16 September 2013 announce plans for lowering fuel consumption. This is expected to have a positive effect on the INR Vs USD.
Punj Lloyd Ltd was recommended yesterday around Rs.25.50-26, in the dying hours of the trade. Punj Lloyd showed a turnaround in June, 2013 quarter, when it reported a consolidated net profit of Rs.40.41 crore in Q1 June 2013, as against net loss of Rs.13.37 crore in Q1 June 2012. Punj Lloyd's consolidated net sales rose 10.8% to Rs.3000.26 crore in Q1 June 2013 over Q1 June 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) declined 1% to Rs.293 crore in Q1 June 2013 over Q1 June 2012. The company is expected to get benefits from the recent announcements from the government. Punj Lloyd, is a leading EPC conglomerate. Punj Lloyd's scope of work includes residual basic and detailed engineering, procurement, construction, installation, pre-commissioning, commissioning and project management for the sulphur block comprising 2 x 100 TPD Sulphur Recovery Unit including Tail Gas Treatment Unit, 60 m3/hr Sour Water Stripper and 250 TPH capacity Amine Regeneration Unit on a single point responsibility basis. Last month the company, was awarded a contract worth Rs.358 crores by Chennai Petroleum Corporation Ltd (CPCL) to build the Sulphur Block of Resid Upgradation Project at its Manali refinery near Chennai. The project is expected to be commissioned in December 2015. With this contract, the order backlog for the Punj Lloyd Group on a consolidated basis has gone up to Rs.21, 226 crores, reflecting the total value of non-executed order as on June 30, 2013 and the orders received after the day. The Group's strategy has been to expand its footprint outside India and today over 65% of orders represent the growing regions of Middle East, Africa, and Asia Pacific. While revenues show a reasonable increase in challenging global macro environment, margins are set to improve as the rupee appreciates further. n the coming months, the group is actively looking at retiring high interest debt. The latest book value of the shares of the company is Rs 115.88. The share touched its 52-week high of Rs.64.10 and 52-week low of Rs.20.25 on 09 January, 2013 & 04 September, 2013, respectively. At current value, the price-to-book value of the company is 0.21. The market cap of the company at the CMP of Rs.24.75 is only Rs.821.94  Cr, which makes it look very attractive for short term investments. Earlier, National Stock Exchange of India (NSE) had decided to exclude the company from the futures and options (F&O) segment with effect from only, 1st November 2013. Therefore, there will not be much sentimental impact on the share price, due to this episode, in September, 2013. 
Jai Prakash Associates Ltd reached my 3rd target of Rs.42 (intra-day it touched Rs.43.90), yesterday. The news of selling its cement division gave a spurt in the stock price. The scrip was recommended around a couple of weeks back at around Rs.31-32. 

Market Mantra

Yesterday, the Nifty moved as expected and closed with a a spectacular gain of 216 points. The market opened with a huge gap, which was followed by sustained buying by the bulls in the run-up to 5900-plus. The bulls were in full control of the proceedings throughout the days and Nifty finally settled near the top of the day.
After a long period on uncertainty and volatility, market seems to have taken an upward direction now. Nifty has recovered 786 points from the low of 5118 in just nine trading sessions. This shows nothing but a reversal and increases the possibility of a medium term uptrend ahead. However......(This Portion is for the Paid Group Members / Clients).
US indices ended higher Tuesday on encouraging economic data from China and as tensions lingering around Syria eased. Key Asian indices are trading mixed as some of them gave up gains on profit booking.
Fundamentally speaking, the share indices are trading flat after yesterday's massive upmove. With the focus now being shifted to the small and mid cap space, the indices are expected to be range-bound for the next few trading sessions.
Today's Call: Buy Opto Circuits Ltd at Rs.25.50--26, for  a target of Rs.32. When most of the pharmaceutical stocks are doing fine, this stock is yet to spurt up. Even in these kinds of markets, the company came out with a net profit of Rs.22 Cr, in Q1FY14, which gave an EPS of Re.0.92. The annualized EPS for FY14, comes around Rs.4-5. Also, it's 21 DSMA>50 DSMA, which indicates bullish formation on the chart. However please keep a SL of Rs.23.50.
Gold price in MCX Ltd is marginally up (flat) today, after yesterday's fall. The seasonal demand would keep the price of the yellow metal buoyant during the coming days. As long as Gold prices in India does not go below Rs.24, 000, there is nothing much to fear from investing in the shares of gold loan companies. CLICK HERE. The loans given are for the short term, hence, they are more or less safe. I have spoken with the sources of Manappuram Finance Ltd (Rs.17.25) who said, the company is now taking steps which would increase the shareholder value. Meanwhile the company has appointed Mr. Kapil Krishan, as the Chief Financial Officer of the Company. He has joined the Company on September 09, 2013.Those who are holding the scrip can keep holding with a SL of Rs.16. 
Now suddenly, when the sentiment in the telecom sector has improved one can go for, Tulip Telecom Ltd (Rs.7.85), at this hour. Buy minimum, 5000--10, 000 shares of the company and keep holding. When a rally in the mid and small cap has started, these stocks have to perform. 
Jai Prakash Associates Ltd, today reached the 2nd target of Rs.42 (intra-day it touched Rs.43) and hence, I would suggest all to book at least 80% of the profit. And keep holding the rest with a SL of Rs.38.70. The debt of the company is humungous around Rs.62, 000 crores, which will be reduced by around Rs.3700 Cr. Therefore major part of the debt still remains. 
DECCAN CHRONICLE HOLDINGS LTD has been declared a wilful defaulter by CENTRAL BANK OF INDIA (CBI). The bank has referred the matter to the Reserve Bank of India. Hence, this might have a NEGATIVE effect on the balance sheet of CBI, therefore exit the stock of CBI at around Rs.58, and wait for dips to enter in Dena Bank Ltd around Rs.XXXX. However, those who are a little risk taking can buy Punj Lloyd Ltd at Rs.24.50-25, for a target of Rs.31-32 in the next few trading sessions.

WINNING STROKES: THINK DIFFERENT

Yes Bank Ltd recommended, on last Wednesday touched Rs.293 intra-day before settling at Rs.287.35, a jump of more than 20% in one day. In the same space, Karnataka Bank Ltd was recommended yesterday to the Paid Group members, at Rs.78.50, the scrip touched Rs.86.60 on Thursday, before closing at Rs.85.65.
MCX Ltd which was recommended around Rs.255 and Rs.270, today hit another circuit to close at Rs.453.20, which is almost near my 2nd target of Rs.470. The scrip has been hitting non-stop upper circuits from around Rs.280.  
Buy Tulip Telecom Ltd at Rs.8.15 for a target of Rs.12-15, SL-Rs.7. The Board of Directors of Tulip Telecom has by way of passing a Resolution by Circulation on August 30, 2013 accorded their approval on the appointment of Mr. Anuj Bhargava (Nominee of ICICI Bank) & Mr. P.C. Bandivadekar (Nominee of Tata Capital Financial Services) as the Non-Executive Independent Directors of the Company w.e.f August 29, 2013.

Today SAIL was recommended to the Paid Group at Rs.47.70, on the hope that after monsoon, the constitution activity will pick up. Tata Steel Ltd has raised prices of its flat products by 5%, and those of long products by 3-5%. CLICK HERE. This is expected to have positive impact on the shares of all Steel Companies. Meanwhile, Bloomberg reports: The fastest Chinese steel output on record is still too slow to meet demand from builders, reducing inventories and driving prices toward a bull market. CLICK HERE.
Today Manappuram Finance Ltd though recovered from the lower circuits but still it closed with a loss of  around 3.8%, which surprised me. It is because when most of the Bank Stocks are moving up and the Sensex was up more than 400, it was unusual to see this kind of momentum counters, hitting the lower circuits. What was a little baffling is that, inspite of sources confirming that there is no problem in the company and gold price recovered from their early losses a to move higher by Rs.160 to Rs.32,764 per ten grams in futures trade (as speculators enlarged their positions, moving in tandem with a firming trend overseas. Gold price in overseas markets, which normally set price trend on the domestic front, edged higher today as investors looked for bargains after a sharp drop in the previous session, but it stayed below the key level of $1,400 an ounce as upbeat US data dented its appeal as an alternative investment), the scrip closed in the red. This raises questions as to who is playing with this share, when even its peer group company Muthoot Finance Ltd (touched Rs.124.95 today) is doing much better. Is there any circular trade going on in the shares of Manappuram Finance Ltd, because a large FII has taken position in the counter? The regulatory authority should immediately take steps, so that any attempt to do mischief with the share price is nipped in the bud.  

WINNING STROKES: THINK DIFFERENT 

B F Utilities Ltd reached the 1st target of Rs.139, as it touched Rs.140.70 intra-day. The scrip was recommended last week around Rs.127-128. 

MCX Ltd hit another buyer freeze, even though the market tanked. I however, feel that it is time to book some profits. The stock closed at Rs.411.10.

Manappuram Finance Ltd unexpectedly hit the lower circuits today, though the price of gold rose due to tensions in the middle east. Safe-haven buying lifted the price of gold on Tuesday after an Israeli missile test ahead of a possible U.S. strike on Syria. This fall in the price of the share of Manppuram Fiance Ltd, seems to be artificial as it lacked the required volume and sales mostly came through delivery based trading. I would basically consider it profit booking and ask you all to accumulate the scrip at the CMP of Rs.18. Muthoot Finance however closed flat at Rs.112.50. CLICK HERE. 
Geometric Ltd recommended some days back at Rs.76-77.50, today touched Rs.80.50. This is tune with the over-all buoyancy seen in the IT counters. 
DLF Ltd today touched its first target of Rs.139, as it rose to Rs.139.75 intra-day. The scrip however closed at Rs.127.40, due to massive speculative selling in the Indian bourses. 
Join my recommended BROKERAGE HOUSE and get assistant during the market hours. If you are interested then do send me a mail at suman2005s@rediffmail.com. 

Gold price today: Latest updates

Tuesday, September 03, 2013: Gold prices extended their yesterday's gains by Rs 170 to Rs 33,234 per ten grams in futures trade Tuesday as rupee fell past 67 against US dollar.

Further depreciation in rupee Vs dollar mainly supported bullion prices as it makes imports costlier. However, weak trend in overseas market capped the upside by restricting market participants from enlarging positions. 

The rupee today weakened by 11 paise to 67.11 against the dollar at the Interbank Foreign Exchange market due to renewed dollar demand from importers and appreciation of the US currency overseas.

At the Multi Commodity Exchange (MCX), gold for delivery in October rose by Rs 170 to Rs 33,234 per ten grams as against its previous close of Rs 33,064. The yellow metal had hit an intra-day high of Rs 35,074 on last Wednesday.

Similarly, silver benchmark delivery gained by Rs 380 to Rs 55,334 per kg.

Gold price in overseas markets, which normally set price trend on the domestic front, fell for a fourth straight session on Tuesday as its safe-haven appeal was dented by a delay in a potential US strike on Syria and strong global economic data.

Spot gold last traded down USD 6.50 or 0.47 percent at USD 1,391 an ounce.

Meanwhile, gold prices extended losses for the fourth straight day by losing Rs 325 to Rs 31,100 per ten grams on stockists selling.

However, silver snapped three day of losses and rebounded by Rs 420 to Rs 54,350 per kg on increased offtake by industrial units and coin makers at existing lower levels.

Mumbai

Standard gold of 99.5 percent purity fell by Rs 410 to close at Rs 31,540 per 10 gm from last Saturday's closing level of Rs 31,950.

Pure gold of 99.9 percent purity dipped by Rs 435 to to finish at Rs 31,685 from Rs 32,120.

However, silver ready (.999 fineness) climbed by Rs 465 to conclude at Rs 55,575 per kg as against Rs 55,110 last weekend.

Delhi

Gold of 99.9 and 99.5 percent purity fell further by Rs 325 each to Rs 31,100 and Rs 30,900 per ten grams, respectively. It had lost Rs 2,475 in previous three sessions. Sovereign followed suit and declined by Rs 200 to Rs 25,100 per piece of eight gram.

On the other hand, silver ready gained Rs 420 to Rs 54,350 per kg and weekly based delivery gained Rs 2,420 to Rs 55,850 per kg. The white metal had lost Rs 4,570 in last three trades.

Silver coins also spurted by Rs 1,000 to Rs 89,000 for buying and Rs 90,000 for selling of 100 pieces. 

Futures Trade (MCX)

At the Multi Commodity Exchange (MCX), gold for delivery in October rose by Rs 170 to Rs 33,234 per ten grams as against its previous close of Rs 33,064. The yellow metal had hit an intra-day high of Rs 35,074 on last Wednesday.

Similarly, silver benchmark delivery gained by Rs 380 to Rs 55,334 per kg.

International markets

Spot gold last traded down USD 6.50 or 0.47 percent at USD 1,391 an ounce.

Here are the city wise gold and silver rates:

(Gold rates per 10 gm/Silver rates per Kg)

Mumbai

GOLD: 31,685 (-435)/ SILVER: Rs 55,575 ( +465)

Delhi

GOLD: Rs 31,100 (-325)09:09 03-09-2013/ SILVER: Rs 54,350 (+420)

Chennai

GOLD: Rs 30,290/ SILVER: Rs 57,570

Kolkata

GOLD: Rs 32,760 / SILVER: Rs 54,450

Bangalore

GOLD: Rs 33,359/ SILVER: Rs 54,100

Hyderabad

GOLD: Rs 31,000 / SILVER: Rs 54,500

Courtesy: Zee News

Market Mantra

MCX Ltd recommended at Rs.255 and then at Rs.272, today touched Rs.391.55 in the BSE. The scrip was asked a buy, when there was of pessimism surrounding te counter.

Geometric Software Ltd recommended around Rs.76-77, to the Paid Service members today touched Rs.79.90 in the NSE. It is a scrip in which ace investor Rakesh Jhunjhunwalal is holding substantial stake. 
Gitanjali Gems Ltd has hit the buyer freeze in the opening trade at Rs.76.15.  There were some media rumours that the company, which has been hit by RBI's new rules on gold import, has approached banks for more than 10 bln rupees in loans.

Today's call: Buy Manppuram Finance Ltd Rs.19.30, T--Rs.25-29-31, SL--Rs.16.80 or Muthoot Finance Ltd at Rs.113-114, T--Rs.132, SL-Rs.103. With gold now around Rs.30, 000 plus in India, there cannot be a better opportunity than investing in gold loan companies. With the tension in Syria continuing and no fixed call from the US Fed regarding tapering of the QE3, the gold prices are not likely to come down below Rs.30, 000 in the domestic market too soon. Moreover, the ensuring festive season starting from Ganesh Chaturthi, will keep the demand for Gold in the domestic market very high. CLICK HERE and CLICK HERE. 
Jai Prakash Associates Ltd recommended last week around Rs.32-33, today rose to Rs.36. The stock was strongly recommended for the 1st target of Rs.37. 
Buy Dena Bank Ltd at Rs.45, T--Rs.52, SL--Rs.41.80. The company came out with decent set of numbers for the Q1FY14, sequentially. The point which to be noted is that in Q1FY14, the EPS is Rs.5.40, which gives perfect indication how undervalued the share price is, at the CMP. One should buy the stock and keep holding. Today another scrip from the Public Sector Bank space, Union Bank India Ltd rose more than 5% intra-day and is now trading at Rs.107.70.
There is positive news in UNITED BREWERIES LTD: Vijay Mallya got 10.5 mn pledged shares released on Aug 7.  The scrip could cross Rs.800 in the next few trading sessions. 
NMDC Ltd recommended around Rs.107-109 and again at Rs.93-94, today touched Rs.122.50.  It has recently been recommended by a number of advisory services. CLICK HERE.

Mid Market Chart Check

[Excerpts of my mid-day inputs to the clients]

Market experienced buying at lower levels. A gap down opening took the Nifty to a low of  5118.85 during first few hours of trade. However, strong buying at lower levels pulled it to a high of 5317.70. Finally it settled almost flat. 
Due to over sold situation in short term and subsequent short cover, the  F&O expiry is expected to be closed in the positive today.  Since the morning, there has been relentless buying in the Indian bourses, after the INR appreciated against the USD. However, what is to be noted is that till now the rallies are proving to be short lived and are getting exhausted quickly. On the other hand lower level is attracting buying interest also. This has resulted into extreme volatility on the either side of the spectrum. However, it seems there are now some hope of Nifty going to 5700 levels by the end of September, which is normally a good month for the BULLS. 

Resistance: 5425 / 5475
Support: 5350 / 5300.

Today' Call: Buy J P Associates Ltd (BSE Code: 5325322) at Rs.33-33.40, T--Rs.39, Sl-Rs.29. The news is that Aditya Birla Group is close to concluding a deal to buy out the company's cement plant in Gujarat for close to 35 bln rupees (Rs.3500 Cr), which could be announced anytime from now. Please remember, last time on such a news, the scrip rallied from Rs.51 to around Rs.90 plus. Those who wants to take  a small risk then they can try Rs.40 Call of J P Associates Ltd at Rs.1.40, for a target of Rs.3-4 in the next 30 days. But do keep a SL of Rs.0.80 paise for any down move.  CLICK HERE & CLICK HERE. 
MCX Ltd which was recommended around Rs.255 and Rs.272, last week is today locked at the Upper Circuits at Rs.256.15. The is near the first target. 
Those who have earlier taken B F Utilities Ltd at Rs.128-128, or later, bought it around Rs.118-120, when it fell can continue to add on to their positions and wait for the scrip to cross Rs.200. Today, I am told that an advisory service has recommended the scrip, as a buy for a target of Rs.163.Today the scrip already touched Rs.134.40.
Those who have entered VIP Industries Ltd yesterday, are suggested to exit the counter at around Rs.47.80-48 or either with small profits, or with cost price, because the stock is not performing as expected, even as the INR appreciated against the USD. It was recommended yesterday, on the two premises: 
(i) Ace investor, Rakesh Jhunjhunwala has increased his holdings, mostly probably banking on the revival of sales from the CSD business of the company. 
(i) Any appreciation of the INR against the USD would be positive for the company as it imports around 80-85 % of its products. 
However, the stock did not react too much on the positive side, may be because the price of crude has risen, on the fear of another war in the middle-east.