The highlight of the global financial markets in the current context is the ongoing debt issues in the Euro Zone and the expected slowdown in the global economy.
But despite these concerns gold prices have corrected as investors have either booked profits in the yellow metal in order to cover up losses made in other asset classes or have sold gold just in order to sit on cash considering the uncertainty in the financial markets.
Either ways, gold was due for correction on the back of these factors and also as the commodity had gained sharply especially after it touched a high of $1920/oz in the international markets.
The last week was no different as the similar trend continued and gold prices declined 2 percent in the international markets and around 1 percent in the Indian markets.
Holdings in the SPDR Gold Trust, world's largest gold-backed exchangetraded- fund (ETF), dropped sharply by 1.6 percent to 1,231.93 tonnes till 30th September from the previous level of 1,252.21 on 23rd September 2011.
Silver
Taking cues from decline in gold prices, spot silver also dropped sharply by almost 4 percent last week. Silver being an industrial metal also took cues from downside in base metals.
The white metal touched a tenmonth low of $26.02/oz but recovered from its low to close at 29.89/oz last week. On a weekly basis, MCX Silver December contract declined around 2.3 percent and closed at Rs51,143/kg on Friday.
Holdings in the iShares Silver Trust, the world's largest silver-backed exchange-traded fund, rose 1.3 percent to 9,995.68 tonnes by 30th September from the previous 9,868.49 tonnes on 23rd September 2011.
Courtesy: Angel Commodities
Get Trading Tips that suits your profile
