Gold drops 16 percent as equities rallied and dollar strengthened amid concern that United States Federal Reserve may slow pace of stimulus

Karachi, May 31, 2013 (PPI-OT): Demand for metal in China and India is expected to slow down in the second half of this year. Physical demand was at a high level as a result of the price shocks during April. The demand trend has already shown declining signs. Gold has dropped 16 percent this year as equities rallied and the dollar strengthened amid concern that the U.S. Federal Reserve may slow the pace of stimulus.

The Organization of Petroleum Exporting Countries, which supplies about 40 percent of the world’s oil, maintained its group ceiling of 30 million barrels a day. Actual production has fluctuated from 30.6 million to 32.4 million barrels a day since that target was introduced in December 2011, data compiled by Bloomberg show.

Malaysian palm oil futures ended off two-month highs on Wednesday and notched five straight sessions of gains, as investors expect tight supplies to whittle down stocks in the world’s No 2 producer of the tropical oil. Palm oil inventories in Malaysia now stand at 1.93 million tonnes, having dipped below the key psychological level of 2 million tonnes at the end of April.

The dollar slipped against the rupee in the interbank market, dealers said on Wednesday. It opened the day’s trading at Rs 98.48 for buying, fell a single paisa and closed at Rs 98.47 for buying and Rs 98.52 for selling.

Settlement Prices at PMEX were as follows with volumes at Rs. 3.97 billion with 19,736 lots traded:

GOLD: USD 1,411.40 /t oz
SILVER: USD 22.540 /t oz
CRUDE OIL: USD 93.16 / barrel
IRRI-6: Rs. 3,617 /100 kg
Palmolein: Rs. 4,390 / Mound
Sugar: Rs. 45.61/kg
Wheat: Rs. 3,217/100 kg
ICotton: US cents/pound 80.22

For more information, contact:
Sarang Abbasi
Asst. Manager, Risk and Analytics
Pakistan Mercantile Exchange
9th Floor, PRC Towers, 32-A,
Lalazar Drive M.T.Khan Road,
Karachi, Pakistan.
Cell: +92-03215148905
Fax: +92-35611263
UAN: +92-21-111-623-623, 99210650-61

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