The real demand for gold

Steadily rising prices have only added to the allure

 

The entire global supply of gold is estimated at 163,000 tons. The World Gold Council reports that of the 1,050-ton demand for gold in the second quarter of this year, 409 tons were for jewellery – of which India alone accounted for 123 tons. In contrast, industrial demand was just 107 tons.

In more recent times, however, investment demand has driven up prices of the precious metal, starting from 9/11 right up to the current global recession.

Gold slips to Rs43,650 per tola

KARACHI: Gold rates dropped to Rs43,650 per tola (11.665 grams) on Thursday amid volatile trade in the world market, dealers said.

Spot gold fell by Rs600 to Rs43,650 per tola and by Rs514 to Rs37,414 per 10 grams, while curbing an insatiable appetite for the precious metal.

Gold hits 4-week high

LONDON: Gold rose to four-week highs on Tuesday and euro-priced gold hit a record peak as investors bought the metal as an alternative to paper currencies amid persistent concerns over smaller euro zone economies.

This helped dollar-denominated gold shrug off a 0.75 per cent rise in the dollar’s value versus the euro. Spot gold was bid at $1,136.45 at 1427 GMT against $1,129.70 late in New York on Monday.

Sindh jewellers to go on one-day strike

Jewellers protesting against spate of robberies in Karachi, Sukkur

KARACHI: Jewellers at Karachi Sarraf bazaar, the biggest gold market in the country, will stage a day-long strike on Saturday to protest against a spate of robberies at their shops, an official of the jewellers association said.

“During the last two months, jewellery worth more than Rs75 million has been looted in six armed robberies,” Haroon Chand, president of All Sindh Sarraf and Jewellers Association, told The News.

Vietnam orders gold-trading floors shut by end-March

Sunday, January 03, 2010
HANOI: Vietnam, where many people see gold as a safe haven against economic uncertainty, has ordered public gold-trading floors shut by March 31 because they rest on a “fragile foundation”.

The order affects about 20 gold-trading houses operated by banks and other firms, which have been running for more than two years, the state-run Vietnam News reported.

Gold retreats towards $1,100/oz

Saturday, December 19, 2009
LONDON: Gold trimmed gains to retreat towards $1,100 an ounce on Friday as the dollar rose against the euro after reports that Iranian troops had briefly entered Iraqi territory prompted buying of the US currency.

Spot gold was bid at $1,100.65 an ounce at 1607 GMT, against $1,097.80 late in New York on Thursday.

US gold futures for February delivery on the COMEX division of the New York Mercantile Exchange fell $4.80 to $1,102.60. The euro fell below $1.4300 for the first time since September 4, as investors bought the dollar amid Middle East tensions. The Iran report lifted oil prices, which rose more than 2 per cent to above $74 a barrel, but gold, which often reacts to geopolitical tensions, shrugged it off to remain within its earlier range.

Gold falls 1.2pc as dollar strengthens

Wednesday, December 09, 2009
LONDON: Gold prices extended losses, dropping 1.2 percent in Europe on Tuesday to a session low of $1,142.30 an ounce, as the dollar strengthened against the euro after Fitch downgraded Greece’s credit rating.

Spot gold hit a low of $1,142.30 and was bid at $1,146.30 an ounce at 1353 GMT, against $1,156.90 late in New York on Monday.

In that session it fell to a two-week low of $1,135.80, having touched a record $1,226.10 on Dec 3.

Gold falls 2pc

Tuesday, December 08, 2009
LONDON: Gold prices fell 2 per cent to session lows in Europe on Monday, on selling prompted by the dollar’s rise to a five-week high versus the euro following above-consensus jobs data in the previous session.

Spot gold and was bid at $1,147.85 an ounce at 1031 GMT, against $1,159.55 late in New York on Friday. Earlier it hit a two-week low of $1,135.80 an ounce, but quickly bounced. Friday’s much better than expected non-farm payrolls data prompted speculation the US Federal Reserve may lift interest rates from their current historic lows sooner rather than later, which could help the dollar and cut support for gold.

Gold falls by Rs1,250 to Rs37,450 a tola

Sunday, December 06, 2009
By Samia Saleem

KARACHI: In one of the most significant crashes after months of continuous hike the bullion markets fell down to Rs37,450 per tola after a decrease of Rs1,250 on Saturday.

Gold prices fell due to stability in the value of dollar after the US banks increased their interest rates told Haji Haroon Chand, President of All Sindh Saaraf and Jewellers Association.

Gold takes a hit

Saturday, December 05, 2009
LONDON: Gold slid below $1,180 a troy ounce on Friday as the dollar rose on a stronger than expected US employment report that raised sentiment on growth and dented gold as a currency hedge.

Spot gold fell 2.6 per cent to $1,174.70 a troy ounce and was bid at $1,178.50 an ounce at 1601 GMT compared with $1,207.10 late in New York on Thursday.

Gold soars to Rs38,800 per tola

Thursday, December 03, 2009
By Samia Saleem

KARACHI: Gold on Wednesday took another leap of Rs400, reaching Rs38,800 per tola amid fears of a declining US economy.

As the US announced to increase its troops in Afghanistan, the yellow metal became the centre of investor attention attracting more demand and thus escalation in its price in international markets, said Haji Haroon Chand, President of All Sindh Saraf and Jewellers Association.

Unstoppable rise of gold

Price soars to Rs35,850 per tola

Tuesday, November 17, 2009
By our correspondent

KARACHI: As the US dollar dipped in the international market, the bullion rate jumped to Rs35,850 per tola on Monday in the local markets, registering an increase of Rs500.

Local markets remain highly disturbed as the yellow metal leaps up day by day marking historic highs. This continuous rise is said to have been triggered by bulk buying of major gold dealing countries like China, India and Sri Lanka, and by disturbances in the US dollar and oil prices internationally.

While it attracts more and more investors, the business of local dealers remains tepid as local household buyers now prefer silver and artificial jewelry over gold.

The rate of ten grams of gold now stands at Rs30,728 from Rs30,300 on Sunday, said All Sindh Saaraf and Jewelers Association President Haji Haroon Chand.

In the international market, the precious metal’s price increased by $16 rising from $1119 on Sunday to $1135 on Monday.

Gold hits record near $1,135 in London: Gold touched a fresh high near $1,135 an ounce on Monday as momentum from recent gains and a slide in the dollar index sparked fund buying of the precious metal, adds Reuters.

Gains in gold, boosted interest in other precious metals, with platinum, palladium, silver and rhodium all hitting their strongest in more than a year.

Spot gold reached a peak of $1,134.30 an ounce, and was bid at $1,132.40 an ounce at 1539 GMT, against $1,118.50 late in New York on Friday.

US gold futures for December delivery on the COMEX division of the New York Mercantile Exchange rose $16.10 to $1,132.80. Earlier they hit a record high $1,134.90.

“Though technically charts are hovering in the over-bought zone, the tipping point seems to be far off and short term correction or retracements should not be considered a sell-off,” said Pradeep Unni, a senior analyst at Richcomm Global Services.

Further weakness in the dollar could fuel fresh buying of the precious metals, as funds turn to hard assets as an alternative to the US currency.

The dollar index slipped as US retail sales rose and traders saw discord over exchange rates among Asian and US leaders as a cue to sell the US unit against free-floating currencies such as the euro.

Rising equity markets also boosted the appeal of assets seen as higher risk, such as commodities and higher-yielding currencies.

Peshawar: gold touches record Rs37250/tola

PESHAWAR: The gold price of a tola has reached record Rs37250 in Peshawar, Geo News reported Tuesday.

According to Peshawar Sarrafa Association, the gold prices are persistently on the rise, as tola was Rs36100 a week ago in the city, which rose to record high at Rs37250 at present, thus, posting an addition of Rs1150 to the tola price of gold.

According to Sarrafa Association, rupee depreciation and dollar rise are the reasons for the burgeoning gold price, adding the gold prices may go further up in the upcoming days.

Mauritius buys two metric tons of gold from IMF

WASHINGTON: The African nation of Mauritius has bought two metric tons of gold from the International Monetary Fund (IMF) for nearly 72 million dollars.

Sale of two metric tons of gold to the Bank of Mauritius, which is the central bank of Mauritius, was conducted on the basis of market prices prevailing on November 11 with proceeds equivalent to 71.7 million dollars, the IMF said.

Early this month, the Reserve Bank of India had announced buying 200 metric tons of gold from the IMF for 6.7 billion dollar.

This transaction is part of the total 403.3 metric tons sales approved by the IMF Executive Board in September and adds to the 200 metric tons already sold to the Reserve Bank of India.

The money, thus generated would be used by the IMF to fund projects in Africa and other third world countries.