Current tensions at the European front as well as weaker greenback could not hold back the industrial numbers around the globe. China and India produced better than expected indices while Europe and US also got certain positives from the industrial side. US Employment scenario became somewhat dusky.
Gloomy outlook at the European front as well as weaker Greenback continued pushing heaven demand for precious metals. Gold gained to eight week high breaching $1750 while Silver could not break $34.
Investors bought 127,000 ounces of American Eagle gold coins from the U.S. Mint in January, the most in a year, data on its website showed. China produced a record 360.96 tons of the yellow metal in 2011, a 5.9% increase which makes it world’s no.1 Gold producer.
Estimates have suggested that China's total gold imports for 2011 will have been some 490 tonnes ‐ double that of 2010. Considering the current profit booking at the Bullion desk as well as ongoing EU problem, it is advisable not to take huge positions on either side unless certain decisive steps occur. But having stop loss is necessary.
Courtesy: Edelweiss Comtrade Limited Research
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