SumanSpeaks: The Information Super Highway

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...

Why Indians love it when government makes gold expensive KOLKATA, 26 Sep, 2013: Government of India makes gold more expensive by hiking duties four times in 20 months, hoping this will deter citizens of India from holding more gold. But not only does gold remain attractive for Indians, expectations of a high price regime have increased its attractiveness. This is not a perverse outcome. It's more a case of wrong official logic. Economics 101 says high prices dampen demand for a product or a service. But Investing 101 says expectations that an asset class will get pricier can increase demand for that asset. Gold is an asset class. Plus, sharp rupee depreciation has also made gold holdings more attractive. Investors who expect gold price to rise say they will invest the same amount of money even if they buy a few grams less - the only risk, ironically for the government, is that import duty may come down at some stage. The World Gold Council's data for A...

PRECIOUS - Gold rises on worries over U.S. budget talks Concerns over possible U.S. government shutdown help CFTC ends silver-fixing probe, market reactions minimal Asian physical demand soft -dealers Coming up: U.S. PCE price index, pending home sales Thurs NEW YORK/LONDON, Sept 25 (Reuters) - Gold rose almost 1 percent on Wednesday, boosted by some safe- haven buying caused by uncertainty over U.S. budget talks. The U.S. Congress, struggling to avert a government shutdown next week, turned its attention Wednesday to the other fiscal bullet coming at it: a federal debt default. Republican leaders in the House of Representatives notified members that a vote on raising the debt limit could come as early as Friday. The uncertain outcome of the budget talks sent U.S. Treasury bonds prices higher while U.S. equities fell. Gold rose to a record $1,920 an ounce in September 2011, partly on fears over the first U.S. debt ceiling crisis, which confronted investors with...

Turkey raises gold reserves by 23 tonnes in August - IMF SINGAPORE, Sept 25 | Tue Sep 24, 2013 - Turkey's central bank raised its gold holdings by 23.344 tonnes in August to 487.351 tonnes, preliminary data from the International Monetary Fund showed on Wednesday. Canada reduced its holdings by 0.03 tonnes, according to the IMF's website. In July, Turkey lifted its gold holdings by 22.5 tonnes, the biggest increase among the 15 central banks that raised their gold reserves. Gold holdings by central banks are keenly watched since, as a group, they became net buyers in 2010 after two decades as net sellers. The 2008 global economic crisis triggered resurgent official-sector interest in gold. Courtesy : Reuters

 Gold edges up for second session; physical demand soft SINGAPORE | Wed Sep 25, 2013 - Gold ticked up for a second session on Wednesday, recovering after a 3 percent drop in as many days, but gains were limited by lacklustre physical demand and lingering uncertainty over the outlook for U.S. economic stimulus. Bullion has fallen about 20 percent this year - after 12 years of gains - on fears the U.S. Federal Reserve would begin tapering its $85 billion monthly bond purchases. Recent comments by the Fed have caused confusion as to the exact timing. When prices fell sharply in April and June, physical demand picked up strongly. With continued volatility in prices and expectations of further declines, consumers have stayed away. "We are seeing very slow demand as people are still bearish," said Peter Fung, head of dealing at Hong Kong's Wing Fung Precious Metals. "They are waiting for prices to fall below $1,300." Premiums over London prices were unchanged fr...

 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. Agenc...

The US Fed would continue with its QE Programe : So sit back and enjoy  ~~Suman Mukhopadhyay Cartoon, Courtesy : The Week The US dollar is strong today, but it seems it is simply trying to factor in the HOAX, that the Fed will going to taper from October, 2013. Moreover, the inflation in the US is very low, so low that there are apprehensions, that the prices could crash if the US stimulus is withdrawn prematurely. Also, too strong dollar is not good for the US economy, which has a large component of exports to the EU, Latin American Countries and Africa. In such a situation, the US will be happy to see a weak dollar and continue with bond buying (Central Bank buying US treasury securities from dealers or QE) programme. According to my analysis, the US Fed will continue make efforts to keep long term interest rates down. BUY WHY WOULD THE US DO THAT? The US Fed would continue with its QE program on the hope that it could create conditions where Businesses ...

PRECIOUS-Gold rises on bargain hunting, snaps 3-day drop Bargain hunting helps gold reverse early loss      Barrick Gold CEO in talks on further asset sales      SPDR inflows drop again, physical demand weak NEW YORK/LONDON, Sept 24 - Gold rose on Tuesday as physical buying at lower prices and technical support helped bullion snap a three-day losing streak. Earlier in the session, the precious metal was down after U.S. economic data showed slowing growth in U.S. home prices in July and a dip in consumer confidence this month. Gold later turned higher on bargain hunting and technical buying after bullion rebounded from a session low near $1,300 an ounce. "Buyers have been stepping in each time gold holds support down near $1,300 an ounce, which looks like a short-term bottom for now," said Michael Matousek, head trader at U.S. Global Investors, which has about $1.2 billion in mutual-fund assets.     "...

Asian shares slip, dollar steady in subdued trade [ Editor : There is NO uncertainty in the US, except the media generated HOAX, that the US Fed is going to taper from October, 2013. Neither the ground data in the US nor any indication from the Fed Chairman points in this direction. There is no need to pay any heed to the uttering of any Tom, Dick and Harry in the US]. TOKYO: Asian shares slipped and the dollar inched higher in early Asian trade on Wednesday, as concerns about a possible US government shutdown and uncertainty about the US Federal Reserve's policy outlook made investors hesitant to take aggressive positions. "Sentiment remained somewhat subdued as investors stayed cautious amid lingering uncertainty on the Fed's stance," analysts at Credit Agricole wrote in a note to clients. "Adding to that uncertainty is the approaching deadlines for the US fiscal struggle and we expect the market to place increasing focus on that front going forward,...

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 a...

US economy not ready for tapering, says Fed official ~By Robin Harding in Washington and Vivianne Rodrigues in New York September 23, 2013: One of the US Federal Reserve’s most senior officials talked down the health of the world’s largest economy on Monday, saying it does not have enough momentum to justify slowing down the central bank’s $85bn monthly asset purchases. “The economy has not picked up forward momentum and a 2 per cent growth rate – even if sustained – might not be sufficient to generate further improvement in labour market conditions,” said William Dudley, president of the New York Fed and vice-chair of the rate-setting Federal Open Market Committee. But Mr Dudley went on to fuel the uncertainty about the Fed’s intentions, reiterating the central bank’s June guidance of a possible “taper” later this year. Markets were thrown into turmoil when the Fed chose not to reduce its asset purchases last week and chairman Ben Bernanke seemed to back away from ...

Gold firms after three-day drop, Fed uncertainty persists SINGAPORE: Sep 24, 2013: Gold edged up on Tuesday after dropping for three sessions, but gains were limited as uncertainty over when the U.S. Federal Reserve would begin tapering its stimulus dented bullion's appeal as a hedge against inflation. The Fed shocked markets last week by deciding not to reduce its asset purchases from the current $85-billion monthly pace, contrary to expectations for a $10 billion cut from September in its bond buying -- which is tantamount to printing money. New York Fed President William Dudley however said on Monday that the U.S. central bank should still be able to reduce its support for the economy later this year, while St. Louis Fed President James Bullard earlier said that stimulus could be scaled back in October depending on economic data. "As long as this backdrop remains, we can expect gold prices to remain volatile," said OCBC Investment Research's Lim S...

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 ...

WINNING STROKES : THINK DIFFERENT Allied Digital Services Ltd hits the buyer freeze at the end of the trade at Rs.22.19, before closing at Rs.21.89. This time it might cross Rs.50, due to favourable scenario both in India and abroad. The company according to my close sources have devised a new software which is expected to give a boost to the overseas revenues. Moreover, with INR depreciating against the USD, good days are coming for the IT and Pharma Sectors.  Opto Circuits Ltd closed flat at Rs.22.15, above the stop loss of Rs.22. It is really strange that the shares of a company which has around 14 subsidiaries could be trading at such a dismal price. The construction work at the Malaysian facility is finished and the erection of machines will be finished soon--this facility will be at the core of the entire restructuring process that the company has envisaged. It is developing innovative low cost products, suitable for the developing economies. Since the low cost ec...

NSEL crisis may have 'minor systemic' implications : Report [ Editor : The government and the regulator fails to stop this kind of major crisis, but focuses on things which are not that important, like preventing some scrip listed in the BSE / NSE from moving up in tandem with other scrips; whereas they can promote a 22% plus rise Yes Bank or a 20% plus rise in some other stocks listed in the F&O,   in a day  ! This is ridiculous and shows how a faulty system has been placed to give favours to the shareholders of some companies, while for others it is denied. Besides, some scrips are suddenly shifted to the T-group, without citing any reasons.  These are simply Tughlak-ian type management by a group of people, who neither have any vision nor any intellect. Moreover, this market has been made a big JOKE by the government of India and its watchdogs. The result is that trading is limited to few stocks only, while many other scrips are languishing near 52-week ...

Top builders sitting on Rs 58,000-cr inventory : Nearly a third accounted for by DLF alone; HDIL's share 20 % [ Editor : It seems the real estate story in India is over for the time being. A bubble  has already been formed in most of the real estate markets across India, and it is only time that this will go bust. If we talk of Mumbai (Bombay), Thane and Raigarh Region, alone in Maharashtra, then apartments which had the rates as low as Rs.1100-1400 per sq.ft, in 2009-10, have now become Rs.2200-2500 per sq.ft. This shows how much froth has accumulated in this sector and it is only a matter of time that the sector will collapse. It is time that investors exit the Real Estate Sector and enter other sectors, such as Pharmaceutical, IT, Food Processing, NBFC and Steel Sector] India’s top builders seem to be sitting on a huge unsold real estate inventory, worth nearly Rs 58,000 crore, which could take more than two years to sell, a Business Standard analysis of 19 listed realt...

Low-hanging fruits for Rajan to pluck Protection of consumers of financial services and regulation of NBFCs would give a major leg-up to financial sector reforms Reserve Bank of India (RBI) Governor Raghuram Rajan has spoken (September 4). In an extraordinary piece of first public articulation of views by a central bank governor, the much-dreaded F-word in the corridors of the Reserve Bank of India ("FSLRC" - the Financial Sector Legislative Reform Commission) was uttered twice. First, about strengthening the monetary policy mechanism, and next, about the resolution mechanism set out in the Indian Financial Code drafted by the FSLRC. Some other areas Rajan highlighted as his focus areas were also hot subjects in the Indian Financial Code (IFC): financial inclusion, dealing with directed priority sector lending, bank licensing, and electronic payments systems. Acknowledging the IFC's existence is a big milestone. Public commentary about RBI and FSLRC after IFC was ...