Tuesday, 27 May 2014

PRECIOUS METALS TIPS 27 MAY 2014

Precious Metals                                                         
   DAILY BUZZ
GOLD
Gold was marginally lower in early trade on Monday, following the relaxation of import norms.
The spot price was down Rs 40 to Rs 27,910 per 10 gm from Friday's close. Apart from the
easing of curbs, a stronger rupee aided the price decline.
 

The price is expected to remain in the Rs 27,000-27,900 per 10 gm range.
 

Demand for jewellery has become stronger in the past week, but investors are waiting for prices
to correct further before stocking up on bars and coins, said Kumar Jain, a jeweller in Mumbai's
famous Zaveri Bazaar gold market.
 

"There is an expectation prices would correct more, but since the price has fallen by around 3%
already, actual users are buying jewellery," said Jain.
 

Also, the RBI's move last week to allow star and premium trading houses to import gold is
beginning to have an effect. Premiums have dropped from as much as Rs 1,000-1,500 per 10
gm to Rs 560 following this move, based on MCX trading data.


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