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Category: Gold news

  • Gold futures rises in rangebound trade supported by dollar weakness

    Gold futures rises in rangebound trade supported by dollar weakness

    Gold futures rises in rangebound trade supported by dollar weakness

    Gold futures rose to the highest price in rangebound trade trade to a narrow range during the European morning hours on Tuesday, where the weak dollar enticed investors in precious metals.

    The players in the market continued to speculate whether the Fed will keep its loose monetary policy in place in the future indefinitely.
    On the Comex division of the New York Mercantile Exchange was trading Gold futures for June delivery was trading at $ 1, $ 574.95 a troy ounce during European morning trade, gaining 0.15% on the day.

    Gold prices traded on the Comex in a narrow range between 1, 570.15 dollars per ounce, the lowest price for the day and the session high at 1, 576.85 dollars per ounce.

    Was likely to find support at 1 gold, $ 539.85 an ounce, the lowest price since April 4, the lowest price in 11 months and resistance at 1, 604.25 dollars per ounce, the highest price since April 2

    Gold prices were boosted because of the weakness of the U.S. dollar, and dollar-denominated commodities become less expensive for investors holding other currencies when the dollar drops.

    The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.15% to trade at 82.75.

    Gold remained supported after the Labor Department said Friday that the U.S. economy added 88,000 jobs last month, the smallest increase since last June, and well below expectations for an increase of 200,000.

    The data also showed that the unemployment rate dropped down to 7.6% from 7.7% in February, while the cause of the decline was the biggest drop out of the labor force. The participation rate fell to 63.3%, the lowest level since 1979.

    Grim jobs data fueled fears that the recovery in the labor market is losing momentum and tension eased recently that the Fed has begun withdrawing the severe monetary policy.

    The central bank said earlier that monetary policy will remain accommodative, “at least where the unemployment rate remained above 6.5%.

    Gold dealers now awaiting the release of the minutes of the meeting of the Federal Reserve Board’s policy for the month of March on Wednesday in search of more hints about future monetary policy.

    The track movements in the price of gold this year, largely transform expectations about whether the U.S. central bank could be carried out more quantitative easing, and one of the biggest aspects of support for the operation of gold, to the end of this year.

    Elsewhere in the Comex rose, silver for delivery in May rose 0.65% to trade at $ 27.31 an ounce, while Copper for May delivery fell 0.7% to trade at $ 3.396 a pound.

    Official data showed earlier that China’s consumer prices rose 2.1% in March of last year, less than expectations for a 2.5% increase and a sharp slowdown from the 3.2% increase in February.

    China is the largest consumer of copper in the world, which represents almost 40% of world consumption last year.

  • Gold falls amid expectations of continued investment funds abandon the precious metal

    Gold falls amid expectations of continued investment funds abandon the precious metal

    Gold fell on Monday, after rising by nearly 2% in the previous session, where the fund rid of their holdings of the metal in order to better investment returns in assets involve risky equities.
     
    Gold dropped for instant transactions increased by 0.4% to $ 1,575 an ounce by at 14:06 GMT. And on the metal charts seems likely to retest its lowest level in 10 months at $ 1,539, which was recorded last week, according to the analysts said.
     
    There has been little change on the U.S. futures for gold at $ 1,576 an ounce.
     
    Bank analyst said Commerzbank Carsten Fritsch, “It seems that today we have market sentiment is willing to risk which justifies this weakness in the price of gold.”
     
    “Prices are still threatened in the short term after the sharp decline to the lowest level in 10 months last week and this level can be re-tested again due to continued foreign inflows of gold traded funds in the stock market and by the sales centers of investors in the short term.”
     
    And landed the previous week metal holdings in gold funds in the world’s major exchange-traded to the lowest level since August 2012.
     
    In the meantime, he said the global billionaire George Soros that gold crashed his status as a safe haven but he predicted that the price supports continued central bank buying.
     
    Analysts said that the version of the minutes of a meeting of the Monetary Policy Committee of the U.S. Federal Reserve on Wednesday is likely to be the main economic event for the market.

  • Gold edges lower as funds seek better yields in equities

    Gold edges lower as funds seek better yields in equities

    Gold edges lower as funds seek better yields in equities

    Gold edges lower as funds seek better yields in equities

    Gold hit a 10-month low of $1,539.70 last week and is down nearly 6 percent this year

    US gold futures for June delivery were down 0.1 per cent to $1,575.20 an ounce

    Gold futures on the Tokyo Commodity Exchange surged as much as 4.8 percent to 5,025 yen ($51.71) per gram

    Gold edged lower on Monday, after rising by nearly 2 per cent in the previous session, as funds were seen cutting bullion holdings for better investment yields in riskier assets such as equities.

    Spot gold dropped 0.4 per cent to $1,575.41 an ounce by 1209 GMT, also hurt by a firmer dollar versus a basket of currencies.
    US gold futures for June delivery were down 0.1 percent to $1,575.20 an ounce.

    “Equities are stronger, and that’s why we are seeing some profit-taking in gold, but losses could be contained as there is still a lot of uncertainty, especially in Europe, where some issues are re-emerging in Portugal,” Bernard Sin, MKS Capital senior vice-president, said.

    Worries over Eurozone debt problems, which resurfaced last month due to inconclusive elections in Italy and a bailout in Cyprus, were heightened after Portugal’s constitutional court on Friday rejected some of the austerity measures introduced as a condition of its bailout.

    Gold had climbed nearly 2 per cent on Friday, the biggest gain since November, after data showed US employers hired at the slowest pace in nine months in March, backing expectations the Federal Reserve would sustain a bullion-boosting monetary stimulus programme.

    But the metal failed to hold onto gains, with momentum fading as the dollar remained strong and appetite for assets perceived as riskier returned on widespread expectations the US economy will perform better in the longer term despite the latest series of weaker economic data.
    “It seems that renewed weakness in the US and Eurozone growth outlook need not produce the drop in the US dollar across the board we saw in 2011,” Citi said in a note.

    “We suspect that the US cyclical leadership would remain intact even if the economy goes through a ‘soft patch’ in coming months.”
    European equities clawed back some of the previous session’s hefty losses, as investors snapped up the beaten-down complex.

    Gold hit a 10-month low of $1,539.70 last week and is down nearly 6 percent this year. In contrast, the S&P 500 stock index has gained almost 9 per cent.

    The release of the FOMC meeting minutes on Wednesday is likely to be the next main economic event for the market, analysts said.
    “Market participants will be keen to get further clarity on where Fed members stand on QE, particularly given rising talks of flexibility and potential tapering of asset purchases,” UBS said in a note.

    ETF outflows

    Bullion holdings at the world’s major gold exchange-traded funds fell in the previous week to their lowest since August 2012.
    Meanwhile, institutional investor George Soros said gold had been destroyed as a safe-haven asset but he expected continued central bank buying to support prices.

    The physical market remained quiet in Asia after Chinese participants returned from a four-day holiday weekend.

    But gold futures in Tokyo jumped almost 5 per cent to near all time-highs, their sharpest daily rise since September 2011, after the yen dropped to near four-year lows on reports the Bank of Japan would begin buying longer-dated bonds immediately to beat deflation.

    Gold futures on the Tokyo Commodity Exchange surged as much as 4.8 percent to 5,025 yen ($51.71) per gram, near the record high of 5,081 yen touched in February.

    The BOJ last week promised to inject about $1.4 trillion into the economy in less than two years, a gamble that sent bond yields plummeting as prices rose on the prospect of massive purchases of debt by the central bank.

    In other precious metals, silver fell 0.3 per cent to $27.21, after tumbling to its lowest level since July 24 on Thursday.
    Platinum, which dropped to its lowest since late August last week, was little changed at $1,530.57. Palladium rose 0.7 percent at $731.22.

  • AED 623 billion gold and diamond trade through Dubai in 2013

    AED 623 billion gold and diamond trade through Dubai in 2013

    AED 623 billion gold and diamond trade through Dubai 2013

    Dubai yesterday hosted a conference of Dubai for precious metals with a select group of senior officials and executives in the gold sector and a group of prominent workers in the field of trade and the financing of trade in precious metals and gems.

    The participants in the conference, which was inaugurated by Dr. Saeed Mohammed Al Shamsi, Assistant Secretary of State for International Organization Affairs at the pivotal role played by Dubai in the trade of gold and precious metals at the global level.

    He estimated Ahmed bin Sulayem, Chief Executive Officer DMCC target size for gold and diamond trade through Dubai by the end of the current year by about $ 170 billion, or about 623 billion dirhams. And grown gold trade through Dubai from $ 56 billion in 2011 to $ 70 billion in 2012.

    Ideal platform

    He Dr Al Shamsi in his opening speech expressed his happiness presence of participants in Dubai most valuable cities in the world in the region where he will meet leaders cosmopolitans of the precious metals sector to discuss the future challenges and opportunities for the industry with a strong focus on strengthening the global supply chain of precious metals and shed light on the economic conditions and opportunities in emerging markets .

    He said that the conference cemented his status one of the most prominent annual events specialized international, providing an ideal platform for workers from around the world to review all aspects of industry precious metals stressing that it is gaining paramount importance in strengthening partnerships and activating the mechanisms of cooperation, coordination and exchange of expertise and access to the application of international best practices on the face of emerging challenges in the area of ​​trade in precious commodities.

    And praised the vision of the leadership in establishing Dubai’s position as a gateway global trade precious commodities and create attractive climate for investments backed by legislation and route you take Dubai sat on the throne of trade in goods precious virtue of history and geographical location, advanced infrastructure and the creation of free zones and tax exemptions.

    And called for the need to come to endorse and support the nomination of the City of Gold to host the World Expo “Expo 2020” and in particular that this support is linked to the prosperity of the precious metals industry globally.

    And the price of the role of the Dubai Multi Commodities in the establishment of high-level forum to promote Dubai’s position at the crossroads between producing and consuming countries in the world which is used as a platform to reach the world referring to the strategic partnerships fruitful with both India and China and the African continent, Latin America and Western countries.

    Shamsi reviewed the elements of the strengths of the state’s economy, which mainly stem from economic diversification and attractive investment environment and the complementary relationship with the global economy.

    Attractive structure

    The Assistant Secretary of State for International Organization Affairs importance of taking advantage of such an environment attractive provided by the UAE in all fields to deepen the base of mutual cooperation and to find more prospects Partnership trade and investment within the framework of the State’s keenness to strengthen its strategic partnerships with economic blocs world to get on a global Advanced achieve the vision “Emirates 2021.

    He explained that it is not possible to return the credit for the rise of Dubai to this status to certain countries, pointing out that the guidelines of the Organization for Economic Cooperation on official gold contribute to the upgrading of the status of Dubai for more louder levels.

    He pointed out that the organization has organized workshops in Almas Tower for the purpose of these guidelines definition, where the value of the business does not estimated the size of the gains of the money, but the size of the credibility and reliability that are pounds, a goal which is keen Center DMCC to achieve.

    He pointed out that the UAE is the only country among the Gulf Cooperation Council (GCC), which adhere to these guidelines. And that it would ease of doing business, transparency and the adoption of best regulations and practices that make Dubai in a position to attract more business gold trade, especially with China and India, which تحتفظان bonds of strong business in the area of ​​the gold trade with Dubai as well as the markets of the Gulf Cooperation Council.

    Early vision

    He revealed Bin Sulayem that His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister and Ruler of Dubai may face when developing his foundation stone for the establishment of the Dubai Multi Commodities in 2002 to work on making Dubai account for 50% of the total gold trade world He pointed out that the center is already working on the implementation of these directives from the moment of its inception.

    And that he had succeeded so far in contributing to raise the share of Dubai’s gold trade global reach to the proportion of 20%, and asking whether it was possible to accomplish the directives of His Highness Sheikh Mohammed bin Rashid hosting with Emirates Exhibition and Conference International Expo 2020, answered accent categorically that he expected to be implemented this at an earlier date facets of 2020.

    Policies

    In response to a question on the policies adopted by the Dubai Multi Commodities aimed to increase the share of the Emirate of Dubai gold trade global answered said Gautam Sahital Chief Operating Officer of the operational center of the Dubai Multi Commodities: would follow the guidelines of the Organization for Economic Cooperation and Development on strengthening the responsible management of supply Gold lead to an increase Dubai’s share of the global gold trade through the polarization of more business, is also keen Center DMCC to provide more services and products.

    For example, is expected to contribute a gold immediate plans Dubai Gold and Commodities for inclusion in attracting more trading and more trade kind of went to Dubai, which offers more support that would strengthen the status of the emirate as a global hub for the alloy gold.

    However, Gautam Sahital in his explanation of the elements supporting the ambitions of Dubai on increasing its share of the gold trade world, saying: In addition to the initiatives mentioned above, the cabinets of precious metals located in Almas Tower plays a big role in attracting more gold in kind, as well as products futures contracts listed on the Stock Exchange Dubai Gold and Commodities Exchange, as well as gold coins in various categories, and lead this diverse mix of products and services to make Dubai in a position to attract more of the global gold trade.

    And on whether the Dubai Multi Commodities plans to increase the storage capacity of the cabinets of precious metals, said Gautam Sahital It depends on demand, if there was a growing demand for these cabinets, the center will certainly increase energy storage cabinets to meet the growing demand, pointing out that the services of precious metal cabinets diamond tower is characterized as a high degree of competitiveness in comparison with its counterpart coffers in global financial centers, and that there are no plans to reduce these fees cupboards.

    Share

    A report by the Center DMCC The Dubai attracts 20% of the total gold trade, pointing out that the total volume of gold trade in 2012 reached $ 70 billion, compared with $ 56 billion in 2011,

    The report also pointed out that the role of the Dubai Multi Commodities is not doing business in itself itself, but is structured this role on facilitating business through the provision of appropriate services and infrastructure developed, and then it is like the commitment of all workers in the supply chain, gold rules of the Organization for Economic Cooperation and Development relation to gold in charge, that leads to the reception Dubai more gold trade legitimate, which in turn leads to give the position occupied by Dubai is more momentum, to be a global hub for alloy gold, and it is more than the place they occupied at the moment.

    Metals expert: Dubai enjoys huge logistical advantages for marketing gold

    Predicted Gerhard Schubert head of precious metals at Emirates NBD increase gold trade through Dubai to $ 100 billion by the end of this year, pointing out that the increase in the gold trade to this figure is an ambitious target and involves challenges, but it is believed that it is possible to achieve this goal , if they were considered to Dubai enjoys advantages as a logistical hub for gold trade, and given also to the Emirates center the networking between Dubai and various regions of the world.

    Said Gerhard Schubert’s vision of the Dubai Multi Commodities and Dubai Group Advisory gold target widen the circle of priorities and concerns towards East Asia in general and China in particular, so as to supply China with gold through Dubai, pointing out that these areas are characterized flourishing demand for gold, making the goal of raising the volume of gold trade through Dubai to $ 100 billion as an achievable goal.

    He explained Gerhard Choprat to sign a booming gold trade through Dubai issue is broken related to economic conditions the world, pointing out that if they were to look at China, for example, it is one of the major consumers of the yellow metal, although it is considered a major producer of gold, but the size of the demand exceeds domestic production, which makes it annually imports about 600 tonnes, as well as in the case of India, which thrives where the demand for gold, even though it is not on the site’s most gold-consuming.

    Hence, Such flows reflect strong demand for gold in South and East Asia, and pointed out that the rules established by the Organization for Economic Cooperation and Development on raising the moral values ​​of gold trade through anti-gold, which is used in funding conflict and civil wars, will have a strong impact on the gold markets, where the center of the Dubai Multi Commodities management of this initiative.

    Domestic consumption

    He estimated Schubert that domestic consumption accounted for by between 70 to 80% of the total gold trade through Dubai, while being re-export the remainder, pointing out that there are several advantages derive Banks gold bullion, if they had stockpiled gold in the Emirate of Dubai in order to be ready to supply Most markets demand for gold such as the Asian markets.

    Schubert said that Emirates NBD is the region’s banks most committed to financing trade gold bullion, even though he entered the newly in this area, which is looking to increase its contribution to this activity.

    Opening banks

    Said Alison Burns, head of precious metals in the region, Standard Bank in the gallery responding to a question about how open appetite of banks to finance the gold trade that Standard Bank supports the gold markets in the region over many years and that he is committed to continue in this direction, as it offers a combination of services aimed at facilitating trade finance, indicating that banks around the world currently focused on recapitalization, as the funding was not an easy issue during the past few years, and of course, the funding would be a case by case basis.

    New products in the Dubai Gold and commodities

    Detection Ahmed bin Sulayem, Executive Chairman of Dubai Multi Commodities that processing DME platform electronic new will provide many products and new contracts, pointing out that being the study of the inclusion of a spot gold, as well as the study of the inclusion of the Fund traded shares on the stock exchange and powered with gold, He pointed out that given the inclusion of the Dubai oil futures contract and the Oman crude futures contract.

    He pointed out that the rupee futures contract has achieved unprecedented success, and it is being considered to broaden the base currency contracts traded, where they are studying the inclusion of holding the Chinese currency (RMB).

  • Dubai a global center for the gold trade others trying reproducible

    Dubai a global center for the gold trade others trying reproducible

    Dubai a global center for the gold trade others trying reproducible

    Said Munir Ragheb Kaloti, Chairman of the Board “Kaloti Jewellery”, the parent company of Kaloti, that Dubai will become the center unique in the world in gold trading, and this in mind, the company has in the expansion strategy in the Middle East to the opening of the largest refinery of gold in the Jumeirah Lakes region, a global refinery in terms of design approval for the systems work environment-friendly, as it comes in the company’s business expansion with growth in demand for gold bullion from which our production ranges between 300 and 400 tons per year.

    He Kaloti that the value of trading in gold and precious metals across the company “Kaloti” bourses world reached 32 billion U.S. dollars last year, where the company has dealings with the most international stock exchanges operating in the trading of gold and minerals through the operations room run by professional intermediaries working around the four Twenty hours a day, the company is present in most stock exchanges of the world, we are members of both the New York Stock Exchange “NYMEX,” the Stock Exchange “Comics”, and Borse Dubai Metals and Istanbul Stock Exchange and other world stock exchanges, as well as so we are in the process of expanding our services through the creation of a platform for e-commerce .

    Kaloti explained, that Dubai has turned into a global center for the gold trade is trying a lot of other cities reproduction of experience in this sector, where Dubai is the focus of attention of global investors with increased interest in gold as a store of value because of recurrent economic crises that hit the global economy.

    He attributed Kaloti, achieving Dubai this position to its trade relations traditional in this precious metal and proximity to key markets such as India, China and Turkey, as well as open markets, new business in Africa and Asia until she was named the “City of Gold in the world” is superior in on Singapore, pointing out that the market share of the company and trade gold bullion trading in Dubai, ranging between 35 and 40%.

    He Kaloti, that the investment environment stimulating the absence of income taxes or import, as well as the trend towards the establishment of free zones such as the Jumeirah Lakes Towers, which embraces the leading companies in the manufacture of gold and precious metals, as well as a stock of gold in Dubai and the trend towards the establishment of many refineries and storage places, are all factors that have helped Dubai to be at the forefront of cities in the yellow metal trade. And, consequently, the details of the interview:

     How was the beginnings of group “Kaloti” in Dubai?

    The beginning was in the field of general trade in minerals other than gold, after the specialty Munther pistil, a family member, in the jewelry industry at an Italian university, worked company كالوتي on the exploitation of this experience in establishing a jewelry factory in 1988 and then went refinery. It is now controlled a large part of the gold bullion trade in the region.

     What strategy depends in your work in the coming period?

    The strategy of our business in the next stage based on laying the groundwork necessary to meet the global demand for our services, where we raise production capacity through the development of human resources and increase efficiency as well as relying on professional counselors and to provide new products and services, and the geographic expansion of our services requires the formation of professional management. This strategy will enable us to meet the needs of the market for a comprehensive and integrated services, where we are one of the few companies that offer a range of integrated services through a single channel.

     Does the company achieved good growth rates in the markets of the region?

    The strategy to maintain an annual growth rate of between 20% to 30%, but the company achieved these rates are good, it is noticeable that there is significant growth in our customer base, especially with the increased interest in gold as a store of value and this year we have spent 25 years in the this industry.

     What about the size of the trust between you and this broad base of customers?

    There are large areas of trust between the company and its customers are based on experience in the markets, where we Hasalon full accreditation from the “standard of Dubai to deliver the goods,” and the Hong Kong market trading, which makes alloys we produce valuable guaranteed anywhere are traded in, the witness of matching Dubai standard for the delivery of goods, which is characterized by proactive monitoring is the most stringent of gold bullion. This is the certificate as a confirmation of our commitment to international standards, and thus the gold bullion that we produce acceptable trading on the Dubai Gold and Commodities, in addition, will be Trgitna from a member of assistant to a full member of the London market for the alloy gold, as well as that we Hasalon the ISO. Jewelry also Kaloti is a member of the Dubai Gold and commodities, and Dubai Advisory Group for gold, and the company is following a strict policy was revised to comply with international laws and regulations to combat money laundering and terrorist financing.

     Are you are members of any of the global gold exchanges?

    We are located in the most important centers of international exchange and are able to provide our customers who are in all over the world the best prices, seven days a week, 24 hours a day, the company is present in most stock exchanges of the world, we are members of both the New York Stock Exchange “NYMEX,” the Stock Exchange “Comics” Exchange and the Dubai Metals and Istanbul Stock Exchange and other world stock exchanges, as well as so we are in the process of expanding our services through the creation of a platform for e-commerce, as the value of trading in gold and precious metals across the company “Kaloti” bourses world reached 32 billion U.S. dollars last year, where the company’s dealings with the most global stock exchanges operating in the trading of gold and minerals through the operations room run by professional intermediaries working around the twenty-four hours a day.

     Do you have any projects for the establishment of refineries in countries outside the region?

    There are many projects under study and implementation abroad, and is headed by a project with the government, “Sornam” to create a refinery of the largest refineries in this small state with a large-scale production, which is expected to increase the production of “Sornam” of gold of about 40 tons, the current year to 60 tons, almost During the next three years.

     How do you see Dubai for raw gold trade at the world level?

    We are confident that Dubai (Center DMCC) will become the Center for Global Trade gold bullion soon as will build refineries for gold at the highest levels of the development of modern and environmentally friendly in the Jumeirah Lakes Towers, where the center offers DMCC us all the necessary facilities to launch services on a global level.

     What’s the most important projects for you in the coming period?

    Of the most important projects for us is a project to build a refinery is one of the one of the largest refiners of gold in the world in the compound of gold in Dubai, which is expected to raise by our production to three times what we produce factory in Sharjah, where we aim to reach 1,000 tons كقدرة productivity per year which is equivalent to three times our current capacity.

     What drew advantage of your presence in Jumeirah Lakes area?

    The company has been successful to have been selected Tower “Diamond” to be a center for bullion trading operations undertaken by the company, which is an important center for gold and jewelery trade in Dubai. The strategic location will help us to strengthen our operations and our brand, and our presence in this strategic region for the gold industry and diamond added a lot to us through the identification of our potential customers, as well as the proximity of the center of trading gold cross “DGCX” and proximity to refineries gold and places storage.

     How do you see the future of Dubai’s gold trade?

    Will be Dubai focus of attention of investors with increased interest in gold, because of their relationship to traditional in this precious metal and proximity to key markets such as India, China and Turkey, as well as entering new markets in commercial relations with Dubai in the gold sector like a lot of African markets, also contributed free environment taxes and other government initiatives such as the establishment of free zones and the establishment of the Dubai Gold Exchange and the launch of Dubai matching the standard for delivery of goods in the development of Dubai in the spotlight. We are excited to be a part of the process of building a future in Dubai, where the company acquires a percentage of the gold bullion trading, ranging between 35 and 40% of the total trading of gold ore in the market. According to Gulf

  • Gold falls for 2nd week but manages to hold above 30K

    Gold falls for 2nd week but manages to hold above 30K

    Gold falls for 2nd week but manages to hold above 30K

    Both the precious metals, gold and silver prices slid for the second straight week in the bullion market on sustained selling by stockists on sluggish demand.

    However, fag-end strong recovery on low level buying influenced by firming global trend, minimised the losses.

    Traders said sustained selling by stockists due to subdued demand mainly helped both gold and silver prices to surrender further ground.

    Selling by stockists came in at a time when the market was passing through an off marriage season and the government hiked tariff value on gold import, dampening the sentiment, they said.

    A fag-end sharp upsurge of Rs 470 per ten gram on firming global trend mainly pushed up the prices to wipe off most of the losses. The gold rebounded from 10-month low in New York as lower US job data, boosted prospects that Federal Reserve might take more steps to spur growth.

    In the national capital, gold of 99.9 and 99.5 percent purity commenced higher at Rs 30,200 and Rs 30,000 per ten grams but soon met with heavy sell-off triggered by a weak global trend and tumbled to touch a ten month low of Rs 29,500 and Rs 29,300 per ten grams.

    On last trading session, it staged a strong recovery on the back of firm global cues and ended at Rs 30,030 and Rs 29,830 per ten grams respectively, still showing a modest fall of Rs 40 each from the previous week’s close. Sovereign lost Rs 150 at Rs 25,100 per piece of eight gram.

    In line with a general weak trend, silver ready dropped by Rs 1100 to Rs 52,400 per kg and weekly-based delivery by Rs 1360 to Rs 51,540 per kg during this week.

    Silver coins also fell by Rs 1000 to Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.

  • 5 reasons why Gold may end up well below $1,000

    5 reasons why Gold may end up well below $1,000

    5 reasons why Gold may end up well below $1,000

    On Friday, the price of an ounce of solid gold tanked below $1,550 per ounce, to an 11-month low of $1,549.57 per ounce, prompting a section of analysts to suggest the end of the golden era for the yellow metal.

    It recovered about $30 or so after the market officially closed for the weekend and an ounce of gold was last seen changing hands for $1,581.30 on Saturday afternoon.

    But does that 2 per cent recovery mean all’s well with gold?

    Not even close.

    For the first time since 2001, the price of gold has seen losses for two consecutive quarters. That’s the definition of being in technical recession – down for two consecutive quarters. Gold price is now down 6 per cent in 2013 (rose just 7 per cent in the whole of 2012).

    This means that, at least over the past 15 months, it has offered meaner returns than a decent fixed deposit account.

    Indeed, gold is within shouting distance of being officially in a bear market, which it will be when (not if) it falls 20 per cent below the $1,920/oz all-time high that it made in September 2011. For that, the price of gold will need to go down to $1/536/oz or below.

    With the kind of volatility and downward pressure witnessed in gold price of late, that might happen before my next paycheque becomes due.

    To be fair, gold has made a remarkable journey over the past couple of decades. In fact, the past 10 years have seen gold climb from $320/oz in 2003 to $1,920/oz in September 2011 to the current levels of around $1,575/oz.

    But in the world of finance, anything that goes up must come down. And it seems that reality is catching up with gold.

    For one, the rest of the financial world, which was witnessing tsunami after tsunami even as the island of gold was getting greener, is now heading back on track, very gradually though.

    But as any smart investor worth his dime will know, you can only make serious money if you start at the beginning of a rising wave, and cash out near the top.

    Equity markets are at the beginning of that wave, and gold is on the top, and falling. So gold investors – the not-so-loyal but still smart ones – are cashing out their bullion bars and trading them in for stocks in stabilising as well emerging markets.

    This trend, once it catches up in the right earnest, will only result in gold continuing to decline, and the decline will get only steeper as more investors jump off the golden bandwagon and off to more ‘riskier’ assets.

    Indeed, with the recent volatility, gold has ceased to be the safe haven investment, which was its USP and acted as a magnet for countless investors. With such investors giving gold investment a second, doubtful thought, gold has lost a lot of its ‘safe’ gloss.

    Moreover, the infamous US quantitative easing program (which has been mimicked by a number of other countries that either peg their currencies with the dollar or loosely track the US fiscal policy) is going to end – sooner than later.

    The US Federal Reserve has looked for and found unique ways of printing additional money. Indeed, it has poured more than $3 trillion of easy money into the US in the past 51 months since December 2008, when the first round of quantitative easing program was unleashed.

    A good percentage of this endless printing of money found its way into gold ETFs and the likes. In less than 5 years, that $85 billion a month additional money has almost doubled gold price from $837/oz.

    The drying up of this dollar river will only be negative for gold price, with analysts suggesting a rollback in prices to the pre-QE era.

    Paper gold (a.k.a exchange traded funds, or ETFs) has been primary catalyst in pushing up the prices of the yellow metal. It’s what made it possible for retail investors across the world to buy up as little as 1 gram of gold without the risk and cost of holding on to physical gold, and offering the flexibility of trading it like a typical share.

    Gold ETFs were introduced in March 2003, when gold price was hovering around $330/oz. Gold has since rallied by 385 per cent, and 45 gold ETFs have sprung up across the globe.

    The convenience offered by ETFs – of entering into the market in small or big denominations, risk-free storage, and the freedom to exit at will – is what is now being blamed for what some forecasters reckon will be a record plunge in record time.

    In fact, in the first quarter of 2013, gold ETFs experienced record outflows. According to Reuters, which tracks eight gold-backed exchange traded products (ETPs), funds suffered their biggest ever outflows this quarter, falling by 7.2 per cent from the start of the year to 70.66 million ounces.

    With equities rising – and expected to continue doing so in the foreseeable future – investors have been busy swapping their ETFs and gold bars for shares and other tradable securities.

    Indeed, the future of bullion looks bleak.

    Unless, of course, the two Koreas actually go to war.

  • 112% growth in trading DGCX during the first quarter of the year

    112% growth in trading DGCX during the first quarter of the year

    112% growth in trading DGCX during the first quarter of the year

    rose volume of trading in Dubai Gold and commodities during the first quarter of 2013 by about 112% in the first quarter of 2012 registered, to more than $ 3.28 million contract, according to a report issued by the stock exchange yesterday.

    The volume of trading in March 2013 by 95% compared with March 2012, recording 1.07 million contract.

    Currency contracts achieved in March rose by 102% on the same month last year, driven by active trades on the Indian Rupee futures contract which has maintained strong growth rates during the first quarter. The number of Indian Rupee futures contracts were traded in March, 1.01 million contracts, an increase of 104% on the same month last year.

    Continued gold futures contracts in the Dubai Gold and commodities strong performance since the beginning of the year registered a thousand 139.91 held by the end of the first quarter, an increase of 47% on an annual basis. The continued growth of silver futures registered an annual increase of 33%.

    Said Gary Anderson, CEO of the Dubai Gold and Commodities: «thanks to the availability of liquidity and price differences narrow in their contracts, will contribute to the strong growth achieved by Dubai Gold and commodities during the first quarter to provide a good platform to achieve stronger growth during the remaining months of the year. It also contributes to the growth of major products along with our new advanced platform ‘platform trader EOS’ in attracting a growing variety of participants for trading on the Dubai Gold and goods from all over the world.

    In terms of contracts for other currencies that have achieved a strong performance during the month of March 2013, has seen trading volumes for Euro – U.S. dollar futures grew by 90% from March 2012, an increase of 282% since the beginning of the year, also achieved decades Yen – Euro futures monthly increase rate of 25 %.

  • Kaloti to build Middle East’s biggest gold refinery and mint in Dubai

    Kaloti to build Middle East’s biggest gold refinery and mint in Dubai

    Kaloti to build Middle East's biggest gold refinery and mint in Dubai

    Kaloti Jewellery Group is to build the biggest gold refinery and mint in the Middle East on a site close to the Dubai Multi Commodities Centre, The National can reveal.

    The state-of-the-art plant, which is expected to be completed late next year, will cost as much as US$60 million (Dh220.3m) to build.

    The new facility, which will be part of the Jumeirah Lakes Towers Free Zone, was unveiled last night as Kaloti celebrated its 25th anniversary.

    “This represents a major investment in expanding and upgrading our refining facilities. This will be a state-of-the-art refinery to rival the best in the world,” said Munir Kaloti, the chairman of Kaloti Jewellery Group. “It will strengthen our ability to meet the growing international demand for our products as well as give us capacity for growth in the years ahead.”

    The refinery will have a capacity to produce up to 1,400 tonnes of gold and 600 tonnes of silver and other precious metals a year. The mint department will produce a range of gold ingots and coins made of investment grade 999.9 purity gold, known as four-nine in the trade.
    The factory will enable Kaloti to triple its current refinery production and will help the company to meet rising demand.
    Global gold refiners and mints have enjoyed a steep increase in business since the start of the economic downturn in 2008. Gold is regarded as a safe haven investment during tough times, a factor that has led the price of the precious metal to almost double from about $890 a troy ounce at the time of the crash in 2008 to around $1,600 today.

    The Dubai gold trade has charted a similarly stellar trajectory in the past five years, with the Dubai Multi Commodities Centre cashing in on the yellow metal’s increasing popularity. The emirate’s gold trade was worth just $6 billion in 2003, according to DMCC data. By 2011, $56bn was traded, made up of $33bn in imports and $23bn in exports.

    The Dubai Gold & Commodities Exchange is also planning to launch a spot gold contract by the end of the year, which requires a large presence of physical gold warehoused nearby in order to function.
    It is understood that the enlarged Kaloti refinery will have a role to play in the spot gold project.
    The new Kaloti refinery will use the latest gold electrolysis technology from Italy and Switzerland as well as the aqua regiaprocess for gold refining. Aqua regia uses a mixture of nitric acid and hydrochloric acid to liquefy gold, enabling the refinery to remove virtually all impurities.
    The plant will also have two assaying laboratories, where the precious metal is tested for authenticity and to ensure it meets the “four-nine” investment grade quality.

    Gold refining is an incredibly costly process using huge amounts of electricity, gas and chemicals. The Kaloti group insists, however, that the new facility meets the most rigorous environmental standards.
    “Our desire to build an energy efficient, socially sustainable refinery fits in with our principal commitment of ensuring the responsible and ethical sourcing of precious metals,” said Mr Kaloti.

    “We strive to guarantee all metals sourced conform to the highest standards set out by government and trade associations.”

  • 22 carats gold price Down to 174 AED

    22 carats gold price Down to 174 AED

    22 carats gold price Down to 174 AED

    DUbai Gold Rate – Gold Prices in dubai down this week by 5-7 AED per gram compared to gold rates by end of the previous week, according to the Dubai Gold & Commodities Exchange .

    Gold trader in Dubai said that the declines in prices, contributed to the improved demand for purchase, and lifted sales of works by up to ‬ 20%, arguing that the rates of decline price paid large number of dealers to buy gold, in preparation for weddings and holidays Summer , especially as the gold prices before rates achieved recent declines were in the range of positive, compared to prices during the months of January and February.

    And detailed, the price of gram (‬ 24) carats yesterday was ‬ 185.25 dirhams, down ‬ 6.75 dirhams by the end of the previous week, while the price of Gram (‬ 22) carats, ‬ 174 dirhams, down ‬ 6.75 dirhams, and arrived gram (21) carats to 165.5 dirhams, down 5.5 dirhams, and the price of Gram (18) carat 142 dirhams, down 5.25 dirhams.

    Gold and Jewelry trader in Dubai said that «outlets selling jewelery experiencing an upswing by dealers to purchase, in an attempt to take advantage of falling prices about six dirhams per gram», indicating that «prices did not check their current itself, since a long time.

    Added that «sales of jewelery and gold coins recorded a growth ranging between 15 20%, supported by the turnout dealers are preparing for weddings and summer holidays», indicating that most of the sales were to buyers from Arab nationalities.

    And they confirm «Gold prices recorded declines at high rates, which contributed to raising the sales works towards ‬ 20%, especially as the prices even before the decline weekly latter was in good levels for buyers as It was less than the prices of January and February, expected to register sales growth in larger proportions, if prices continue at rates close in the coming days.