Commodity Online
India’s retail gold traders are buying like never before trying to replenish stocks as prices seemed to cool down a bit. Price of Gold in India are staying one-week low, but below normal monsoons could very well dampen demand in the short-term.
Wholesalers and retailers say they are doing better business in this week as prices are low and consumers are coming forward to buy. Also, it seems likely that if prices further correct themselves, then definitely more buying will be seen.
The July-September monsoon, crucial to agriculture and rural incomes, has been delayed and is forecast to be at 93 percent of the long-term average. Demand for gold in India hinges on a good monsoon, which boosts farm output and rural incomes.
The Indian rupee remained more or less the same at 47.90 againstt the dollar.
Bad news for U.S., bad news for the world
Recessionary fears continue to loom large over United States as manufacturing in the country shrank at the slowest pace since August 2008 and pending sales of existing homes advanced for a fourth month, underscoring signs the economy began to stabilize in the second quarter.
The U.S. dollar index and treasuries fell as China was rumored to have requested “a reserve currency debate at next week's meeting of the Group of Eight economies, but few believe it will happen.”
The Dow, Nasdaq, and S&P rose as varied economic reports showed some signs of encouraging relative strength with also enough evidence of weakness to help the argument of keeping interest rates low.
Gold in New York this week at its lows at $930.50/931.50 an ounce and rallied fast as the metal was bought well. Later, as the session went quiet, the metal traded sideways and a resistance was established.
China, once again in its threatening stance said it wanted to discuss the possibilities of a new reserve currency in the next G8 summit. On this news, the dollar tumbled and gave Gold a reason to be bought as it peaked.
Profit taking of course dragged the metal eventually closing at $940.50/941.50 an ounce.
Silver also opened on its lows at $13.65/13.68 an ounce in New York and was carried higher on the back of stronger Oil and base metals. Oil then retreated and so did the white metal. The news from China and the sudden dollar weakening gave Silver a spike too. Finally, the metal closed at $13.75/13.78 an ounce.
