South African Gold mines turn market into storm after worker demands of doubling wages

Karachi, June 26, 2013 (PPI-OT): South African Gold mines turn the market into the storm after worker demands of doubling wages. Prices at PMEX went as low as the $1,230 mark, with sudden price shocks being frequent. A 4% move like this has led to a volatile session. Investors would have to keep an eagle’s eye for even the slightest price movements.

It is also stunning to see the highly correlated trend of gold with US interest rates. The sensitivity to monetary news has increased for the metal. Thus, even normal events may have more than expected results on price.

Silver seems to follow suit. By reviewing prices by the minute and comparing them to gold, a sound correlated trend can be observed. However, there is a certain lag to silver prices movements when compared with gold. This can range from a minute to five.

Crude dropped for the first time in three days after an industry report showed U.S. crude stockpiles remained near the highest level in more than 30 years.

Futures lost as much as 1.1 percent in New York, before paring some of the decline. U.S. inventories slid by 28,000 barrels last week to 392 million, the American Petroleum Institute said after futures markets settled yesterday. Crude supplies climbed to 396.3 million earlier this month, the most since July 1981.

Settlement Prices at PMEX were as follows with volumes at Rs. 4.93 billion with 21,749 lots traded:

GOLD: USD 1,228.8 /t oz
SILVER: USD 18.58 /t oz
CRUDE OIL: USD 94.92 / barrel
IRRI-6: Rs. 3,743 /100 kg
Palmolein: Rs. 4,452 / Mound
Sugar: Rs. 46.56/kg
Wheat: Rs. 3,393/100 kg
ICotton: US cents/pound 86.02

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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