Silver Tips

Silver Tips :-

Gold Prices have been losing steam ever since it failed to cross the $1800 level. For now, risk appetite is weighing on commodities, and uncertainty is weighing on the Euro. With a slightly higher dollar, Gold Prices are feeling the pressure and losing ground. Comex Gold Prices hit a fresh four-week low & bottomed at $1729.7 closing around $1737.6 yesterday. The US Dollar index was firmer on some short covering and some perceived safe-haven buying & Crude Oil prices were slightly lower. MCX Gold Prices slumped to Rs. 30956 / 10 gms yesterday & have declined further today to Rs. 30862 on the back of a strengthening Indian Rupee. For the week ended Oct. 9, speculators in CFTC - the Commodity Futures Trading Commission’s weekly commitment of traders report bumped up their net-long positions in the Precious Metals. The downside break in Gold Prices may give traders & Investors the much needed re-entry in long positions after having booked gains close to $1800 in Gold Futures. The net-long positions in Gold Futures remain heavy. Gold ETF holdings are still at record highs and speculative positions at their highest since August 2011. While speculators are adding to their bullish positions in Gold, the momentum behind the gains are beginning to slow. China’s consumer inflation came in a bit lower than expected in the latest batch of Chinese economic data. That prompted speculation among traders that China’s central bank may have more leeway in further easing monetary policy. China’s trade surplus also grew in September, which suggests domestic demand in China is on the upswing. However, the weekend China data also showed bank lending growth weaker than expected in September. On the European Union sovereign debt front it’s Greece’s turn to be in the spotlight this week, as EU officials cannot seem to agree on how or when to provide the next tranche of bailout funds to the financially troubled country. The willingness of the European Central Bank to buy bonds of troubled nations is the key for the Euro to rise eventually, when the time comes. Downside in Euro remains limited. The focus for the EUR this week remains on this week’s EU Summit being held on Thursday through Friday. Traders tend to monitor foreign-exchange moves since they can impact base and precious metals alike. With the INR strengthening, Gold has found handsome support from a pick-up in buying in India in the weeks preceding the key festival of Diwali.