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17 January 2010 at 05:35 IST
COMEX gold stocks rise by 13,400 ounces
By Brad Zigler
Implied interest rates in the gold market backed off from last week's levels as oil prices slumped, but the dollar's weakness against bullion and the euro were stronger forces building inflationary expectations this week.
Key inflation markers for the week ending Thursday:
The London morning gold fix inched up 0.6 percent with prices averaging $1,141 an ounce; spot COMEX settlements averaged $1,139, ending the week 0.8 percent higher; average daily volume increased by 53,000 contracts, or 24.1 percent, this week, but open interest continued to ease by 0.5 percent, or 500 contracts a day.
COMEX gold stocks rose by 13,400 ounces to 9.84 million; COMEX supplies now cover 19.3 percent of open interest.
The Market Vectors Gold Miners ETF (NYSE Arca: GDX), a proxy for senior gold stocks, slipped 1 percent, double the 0.5 percent suffered by the junior issues comprising the Market Vectors Junior Gold Miners ETF (NYSE Arca: GDXJ); the S&P 500 Composite rose 0.6 percent.
NYMEX spot crude oil lost 4 percent to finish at $79.39, raising the gold/oil ratio from 13.7x to 14.3x.
Three-month Treasury yields ticked down another basis point (0.01 percent), while LIBOR continued to hold steady; the yield premium demanded for interbank lending—the TED spread—averaged 21 basis points.
The one-year rate implied by the COMEX gold market stood at 86 basis points, a 49-basis-point premium to Treasurys; London three-month gold lease rates ratcheted 7 basis points higher this week.
Long bond rates fell six basis points, flattening the Treasury yield curve 5 basis points to 4.59 percent from the two-year record high reached Monday.
The U.S. dollar continued to lose ground to the euro, slipping nearly 1 percent; this week, euros cost an average $1.4458 in interbank trading.
Year-over-year monetary inflation averaged 2.8 percent, up from last week's 1.9 percent mean; real returns on three-month Treasury bills, as a consequence, fell to -2.97 percent; the average annual monetary inflation rate over the past decade is now 5.1 percent.
Courtesy: www.hardassetsinvestor.com
NCDEX SUGARM200JUL12 20 July 2012
contract was trading at
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