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.

Gold Silver Tips Updates

Gold futures are trading flat in the Asia electronic trades today with lack of cues in the markets right now. The Asian equities are trading higher, crude oil futures are also trading steady above $92 a barrel, however silver and other base metals were trading slightly lower this morning.
Gold for December delivery are trading flat at $ 1771 an ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it closed up $5.5, or 0.3%, to $1,770.6 and during the intraday trading it rose to a high of $1,774.5.
The US dollar softened yesterday after series of gains since Standard & Poor's Ratings Services had cut Spain's credit rating to BBB-, just one notch above junk status. The ICE dollar index, which measures the greenback against a basket of six other currencies, fell by almost 0.25% on Thursday.
In news yesterday, the Labor Department in US reported that number of U.S. workers who filed new applications for unemployment benefits dropped sharply, by 30,000, last week to 339,000, the lowest level in more than four years.
Separate report showed that the trade deficit widened to $44.2 billion during August after the prior month's reading was revised down to $42.5 billion. Market had expected that the deficit would come in at $43.6 billion.
MCX December gold futures may open today’s session near Rs 31350-70 levels with resistance near Rs 31410-20 levels.
Next week, the minutes of the Reserve Bank of Australia’s latest monetary policy meeting will dominate the markets. Also due next week are the consumer price index figures in the United States, and Chinese inflation. In the corporate world, a number of miners will release quarterly production reports including Rio Tinto, BHP Billiton and Fortescue Metals.