Wednesday, 4 June 2014

PRECIOUS METALS TIPS 04 JUNE 2014

Precious Metals
DAILY BUZZ
GOLD
Gold is likely to consolidate around current levels with a bearish bias on Tuesday, said Kumar Jain, a jeweller in Mumbai's famous Zaveri Bazaar gold market.
 

In the grey market, gold closed down Rs 150 per 10 gm to Rs 27,050 on Monday. This spurred fresh buying by local consumers to meet wedding demand, Jain said.
 

"Consumers had seen prices of Rs 29,500-30,000 for sustained periods till recently. Now with the rate at Rs 27,000, those who held back purchases have entered the market," Jain told ET.

Jewellers and bullion dealers expect the government to reduce customs duty by 200-400 basis points from the current 10 per cent after the RBI eased supply restrictions on May 21 by allowing star and premier trading houses to import gold against 20 per cent exports. A basis point is one-hundredth of a percentage point.
 

At current rates of Rs 27,000, if the government cuts duty by four per cent points, gold would decline by Rs 1,080 per 10 gm.
 

In the international market too gold has been declining, having dropped to $1,250 per ounce levels because of a recovery in the US economy and its consequent impact on the dollar.


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