GOLD SILVER TIPS

MCX Gold futures are expected to open on a negative note after the global prices fell under $1700 per ounce yesterday and comntinue to linger under the same mark in Asian trades today. The settlement of near month contracts on COMEX and MCX hit the futures hard in last few days and the prices fell to a a four week low in New York yesterday and currently trades at $1695 per ounce, almost unchanged on the day.

US stocks witnessed a late surge yesterday after media reports stated that a group of Republicans had signed a letter urging the exploration of “all options” on taxes and entitlement programs. However, untill a confirmation is delivered by the officials, these talks are unlikely to help lift the sentiments much.

Gold for February delivery, the most actively traded contract, fell $US25.30, or 1.5%, to settle at $US1,695,80 a troy ounce on the Comex division of the New York Mercantile Exchange, the lowest settlement since November 5. The thinly traded December contract closed at $US25.20, or 1.5%, lower at $US1,694.40 an ounce.

MCX Gold witnessed a heavy correction too as the MCX December series expired. The contract fell well under Rs 31000 per 10 gram levels and closed at Rs 31195 per 10 grams. The Benchmark February contract also shed Rs 167 per 10 grams or half a percent to end at Rs 31199 after testing lows of Rs 31136 during the session. The correction in early electronic moves has not been factored in the commodity so far and we could see the benchmark futures testing lows near Rs 31k in today's trade.

GOLD SILVER TIPS

Gold futures recovered its yesterday’s losses in Asia trades today taking cues from strong equities and weak Japanese Yen.
In Asia, Japan’s Nikkei Stock Average led the regional gains, as it has in a string of recent sessions, rising 1% in early moves. South Korea’s Kospi gained 0.4%, but Australia’s S&P/ASX 200 fell 0.2%. The rally in Tokyo came as the yen hit a seven-month low against the U.S. dollar, and also fell sharply against the euro.
Weak Japanese trade data released 10 minutes ahead of the stock-market open helped exacerbate the yen’s fall. The Finance Ministry reported a 6.5% year-on-year drop in Japanese exports, fueled by another tumble in shipments to China, amid tensions between the two nations. Driving the drop in exports was an 11.6% fall in exports to China, Japan's top trading partner, as a territorial dispute between the two continued to stoke tensions.
December dated gold futures are trading up $1.6 at $ 1725.1 per ounce on COMEX division of New York Mercantile Exchange. The counter may face a resistance near $1735 levels today.
Euro-zone finance ministers on Wednesday failed to reach an agreement on conditions to release the next tranche of financial aid for Greece. The leaders will meet again on Monday to continue the discussions, according to reports. The euro dropped on the news, sliding to $1.2756 from around $1.2812 immediately before the announcement was made.
MCX December gold futures may open today’s session near Rs 31770 levels with resistance near Rs 31840 levels and support near Rs 31700 levels.

GOLD SILVER TIPS

Bullion metals ended lower at Comex on Tuesday, 27 November 2012. Gold prices ended lower for second straight day as the dollar headed up and a sort of debt deal was reached at Greece. Upbeat US data also took some shine away.

Gold for December delivery fell $7.3 (0.4%) to settle at $1,742.3 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.

On Tuesday, December silver fell 16 cents, or 0.5%, to settle at $33.98 an ounce.

In overnight trading, the European stock markets rallied only modestly on news that Euro zone leaders meeting in Brussels agreed late Monday to disburse fresh bailout funds to cash-starved Greece. Most market watchers had reckoned EU leaders would grant new monies to Greece. The world market place showed no significant reaction to the as-expected news on Greece.

A meeting to discuss Greece's finances wrapped up early Tuesday with Greece's institutional lenders reaching a deal to pave the way for Athens to receive almost 44 billion euros (almost $57 billion) of financial aid, while bringing its debt down to a sustainable level. The deal is expected to trigger another aid payment for the debt-struck country.

A heavy slate of U.S. economic data released Tuesday did show generally better-than-expected readings overall, and that put modest upside pressure on the U.S. dollar index, which in turn helped push gold and silver prices to their daily lows.

The dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.2% on Tuesday. The Euro currency also was initially supported on the Greece news but could not hold those gains as the day wore on.

In today's economic news at Wall Street, Consumer confidence rose in November to its best reading in more than four years. The latest consumer confidence reading for November came in at 73.7, while market expected a reading of 73.0. The Conference Board said its consumer confidence index rose to 73.7 in November from 73.1 in October. That's above the 72.2 level forecast. The October reading was upwardly revised from 72.2.

Separately, the September Housing Price Index from the FHFA increased by 1.1%, which follows a 0.7% increase observed during the prior month. Also, the September Case-Shiller 20-city Home Price Index rose by 3.0%, while a 3.1% increase had been expected. This followed the previous month's increase of 2.0%.

Durable goods orders were unchanged in October, which was better than the 0.4% decrease that had been expected. Excluding transportation related items, durable goods orders increased in October by 1.5%, which was better than the 0.4% decrease that had been broadly anticipated. Prior month's reading was revised down to reflect an increase of 1.7%.

Traders and investors are also focused on the negotiations among U.S. lawmakers and President Obama regarding the so-called “fiscal cliff” tax increases and spending cuts that are approaching.

At the MCX, gold prices for February delivery closed lower by Rs 149 (0.45%) at Rs 32,594 per ten grams. Prices rose to a high of Rs 32,825 per 10 grams and fell to a low of Rs 32,550 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed lower by Rs 198 (0.31%) at Rs 63,536/Kg. Prices opened at Rs 63,877/kg and fell to a low of Rs 63,361/Kg during the day's trading.

GOLD SILVER TIPS

The most active gold contract for December delivery increased $ 23.2 in a single trading session on Friday to settle at $ 1751.4 per ounce, up 2.1 percent in the week.

This is gold's highest closing price since October 17.Weak Dollar made Gold reach monthly high on COMEX division of New York Mercantile Exchange.

This week, U.S. Department of Labor said number of individuals filing for initial jobless benefits in the week ending November 17 declined to a seasonally adjusted 410000, in line with expectations.

Jobless claims for the preceding week were revised up to 4,51,000.

On currency front, Dollar fell by 2% against the Euro to 1.2977 as European data supported the local currency.

German Institute of Economic Research said that business climate index increased to 101.4 in October compared to 100 in the month of September. In France, the business confidence rose more than expected. INSEE said that French Business Confidence increased to 88 in the quarter ending September 2012, compared to 85 in the previous quarter.

Gold Poised for a rise in November:

Gold Poised for a rise in November:

The festive season in India will peak in November with Dhanteras & Diwali considered as auspicious for Gold Bullion & jewelry buying or gifting. Weddings also take place during this period, and Gold jewelry is an essential part of the gifting and this may act as a backstop against steeper Gold Price dips. Gold Demand is expected to rise in Q4 2012 due to weaker prices based on the stronger INR against the US Dollar and stronger jewelry and investment purchases, according to the All India Gems & Jewelry Trade Federation. Post the US Presidential Elections in November & based on the open ended dynamics of the latest quantitative easing program- the QE3, we see the possibility for Gold Prices reaching & also surpassing the 2011 high of $1925, once the psychological range of $1800 to $1855 is breached. Spain also may soon make a formal request for a Bailout which may add to the Global stimulus, triggering Gold Prices to spike upside.

Gold Silver Tips

COMEX Gold futures fell further with prices falling to the low $1,707 an ounce, nearly one and half month low as the selling pressure stayed in place amid mixed undertone in global equities and strength in US dollar. The greenback is quoting in a positive manner after losing slightly yesterday and neared 1.3000 levels against the Euro yet again today. Euro slipped from the early high of $1.3075, quoting right now at $1.3004 mark level, down 0.47% from the previous close. COMEX Gold futures for December are quoting at $1710.10, down $16.2 per ounce on the day. Gold has been hit hard in the last few days as highs near $1800 per ounce proved unsustainable and weak Chinese demand hurt the sentiments. Mainland Chinese imports of gold from Hong Kong slowed dramatically in August. Hong Kong shipments of the metal to Mainland China for the month totaled 54 tons, a drop of 29% from the 76 tons shipped in July, according to data from the Hong Kong Census and Statistics Department.

MCX Gold fell further with December contract is trading at Rs 30,928, down Rs 140 per 10 grams. The counter is likely to find support at Rs 30,850-30750 and resistance at Rs 31050-31180 level.

COMEX Silver futures December contract is quoting at $31.735, down 0.517 per pound in the afternoon session.

Silver December is quoting at Rs 59029, down Rs 569 or 0.98% from the previous close. The counter is having resistance at Rs 59400-59600 and supports at Rs 58700-58600 level.

Gold Silver Tips

Gold stayed under pressure in early London trades today as the US dollar continued to have upper hand against the single currency. For the week gold is on track for losses of nearly $25. Crude oil also slipped along with copper and silver due to appreciation in the dollar.

The U.S. dollar continued to move higher on Friday, gaining on disappointment over U.S. data a day prior and as investors watched for news from the European Union summit. The dollar index which tracks the dollar against six major currencies, rose to 79.385 from 79.356 in North American trade late Thursday.

The euro slipped further to $1.3054, from $1.3072 late Thursday. Early Friday, the EU said it has set a deadline of Jan. 1 for agreeing a legislative framework for a single supervisory mechanism. Analysts noted that the dollar was supported by media reports pointing to a public clash between German Chancellor Angela Merkel and French President Francois Hollande over greater EU control of national budgets ahead of the summit a day prior.

Gold for December delivery, the most actively traded contract, shed $7 at $ 1737.7 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday it closed down $8.3 or 0.5 percent to close at $1,744.70 an ounce Thursday on the Comex division of the New York Mercantile Exchange.

Investors were also on alert as a two-day European Union summit got underway in Brussels, although expectations were low for any major developments.

After the first day of the summit wrapped up, European leaders flagged progress in Greece toward meeting its austerity targets but also said that Greece’s institutional lenders were still reviewing the country’s situation.

MCX December gold futures are trading lower at Rs 31356 down nearly Rs 20 per 10 grams. The domestic gold futures have been supported as the Indian Rupee slumped to one month low levels.

The dollar was trading at 53.61 rupees at 0410 GMT after touching 53.79 rupees, its highest level since Sept. 21. It was quoted at 53.41 rupees in late Asian trade Thursday. The local unit was also pressured by weak local stocks, with the Bombay Stock Exchange's Sensitive Index off 0.3% at 18739.20.

The dollar had touched a five-and-a-half month low of 51.36 rupees on Oct. 5, spurred by the U.S. Federal Reserve's third round of quantitative easing and measures taken by the Indian government to reduce spending and boost growth.