Market shows upward trend for gold

Karachi, July 02, 2013 (PPI-OT): The market showed some upward trend for gold. But the question is how long this can persist. As per Goldman Sachs Group Inc. bullion will reach $1,050 by the end of 2014 and Credit Suisse Group AG anticipates $1,150 in about 12 months. Hitting an alarming low of $1180.5 that too after a debacle in April, there isn’t much numeric evidence for the metal’s comeback. Gold has further to drop in the rout that erased $66 billion from the value of investor holdings and took prices below the level some mines need to break even. With the total cost of producing an ounce of gold now averaging about $1,200 and billions written off the value of mining assets, some analysts anticipate contracting supply in the next several years that may help halt the retreat. Indian policy makers are urging citizens to resist buying gold and boosting scrutiny of speculative currency trades after import curbs and dollar sales failed to stem the world’s biggest currency loss.

Palm, the most-consumed cooking oil, will probably decline 4.5 percent in the next two weeks to the lowest level since May as it remains in a downward trend, according to a technical analysis by RHB Investment Bank Bhd.

The most-active contract on Bursa Malaysia Derivatives may drop to 2,250 ringgit ($710) a metric ton, a support level that the commodity couldn’t break in late April and early May, said analyst Mohammad Ashraf Abu Bakar, who has predicted prices for the past five years.

Sugar production in Pakistan, Asia’s fourth-largest producer, may jump as much as 20 percent to a record next year as higher state-set cane prices spur farmers to boost planting, potentially increasing exports. Output may expand to 6 million metric tons in the marketing year starting Nov. 1 from 5 million tons this year, said Shunaid Qureshi, chairman of the Pakistan Sugar Mills Association. That may boost surplus for exports, he said. Settlement Prices at PMEX were as follows with volumes at Rs. 3.4 billion with 13,466 lots traded:

GOLD: USD 1,258.8 /t oz
SILVER: USD 19.575 /t oz
CRUDE OIL: USD 98.06 / barrel
IRRI-6: Rs. 3,762 /100 kg
Palmolein: Rs. 4,404 / Mound
Sugar: Rs. 47.07/kg
Wheat: Rs. 3,387/100 kg
ICotton: US cents/pound 86.58

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
Web: www.pmex.com.pk

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