Gold edges lower on Tuesday, snapping earlier gains

Karachi, May 14, 2013 (PPI-OT): Gold edged lower on Tuesday, snapping earlier gains, as the dollar steadied against the euro after mixed European economic data, while investor sentiment remained cautious and physical demand slowed in some markets.

In contrast accommodative monetary policies favor gold as low interest rates encourage investors to put money into the non-interest-bearing asset, speculating on price gains. Perhaps Gold has already recovered around $120 since a sell-off in mid-April dragged prices to more than two-year lows at $1,321.35, but it is still well below last month’s peak of around $1,600.

Crude oil slipped, caught between hopes of a revival in global economic growth and worries over demand after bearish reports from the West’s energy watchdog. Economic data show the world’s two biggest economies and oil consumers are picking up steam, increasing demand for fuel, despite slowing consumption in Europe.

Malaysian palm oil futures edged lower, dropping for a second straight session as worries about weak exports and a firm ringgit kept investors on the sidelines.

Settlement Prices at PMEX were as follows with volumes at Rs. 2.38 billion with 10,523 lots traded:

GOLD: USD 1,427.60 /t oz
SILVER: USD 23.360 /t oz
CRUDE OIL: USD 94.74 / barrel
IRRI-6: Rs. 3,526 /100 kg
Palmolein: Rs. 4,361 / Mound
Sugar: Rs. 45.52/kg
Wheat: Rs. 3,176/100 kg
Cotton: US cents/pound 85.82

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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