The Euro has bounced from its one week low against the US dollar on the possibility of that the EU officials may significantly boost the region's ability to fight the debt crisis by operating two bailout funds, the Financial Times reported Tuesday on its website. The talks are focusing on the possibility of allowing the euro-zone's 440 billion euros ($590 billion) bailout fund to remain in operation when a new €500 billion facility comes into force in 2012, according to the media reports.
Gold for delivery in February were up $2.60, or 0.2%, at $1,734.40 a troy ounce on the Comex division of the New York Mercantile Exchange during Asian trading hours. The metal's prices moved in a range between $1,729.90 and $1,735.50. Gold has been falling since the start of the week, with Tuesday's losses coming in the wake of Standard & Poor's warning that it may downgrade the credit ratings on the sovereign debt of as many as 15 euro-zone countries.
After Australia slashed the rates yesterday, the data released today showed that the Australian economy grew by 1% in the September quarter, the Australian Bureau of Statistics reported today. On the year, gross domestic product (GDP) rose 2.5%. The third-quarter rise followed a revised 1.4% expansion in the second-quarter of the year.
Commodity benchmark gold is trading up over Rs 100 at Rs 29044 per 10 grams supported by the weakness in the Indian Rupee against the US Dollar. The counter may face a resistance near Rs 29100 levels with supports around Rs 28900. The Indian rupee fell marginally by 4 paise to Rs 51.45 per U.S. dollar in early trade on the Interbank Foreign Exchange on Wednesday amid increased demand for the American currency from importers.
Industry body ASSOCHAM has regretted the government decision of holding back Foreign Direct Investment (FDI) in retail segment. In a release on Wednesday the body said that the cabinet decision to hold back retail FDI due to opposition unrest was a missed opportunity that would impact the already weak Rupee. ASSOCHAM said that India is in need of domestic and foreign capital to build infrastructure space in the country.
“This decision will send a very negative message to foreign investors. It is a clear case of missed opportunity which would have created over 10 million of new jobs in three years, curbed agricultural wastages, benefited farmers with better remuneration for their produce and brought down prices of many commodities for consumers.” ,said ASSOCHAM secretary general D.S. Rawat.
Foreign direct investments in many sectors like information and communication technology have resulted in enormous spin-off benefits including introduction of efficiencies and modern management practices besides creating new jobs, he said.
Japan's coincident composite index (CI), which reflects current business conditions, rebounded by 1.3 points to 90.3 in October under, buoyed by higher power usage and industrial production, preliminary Cabinet Office data showed today. The coincident CI recorded its first rise in three months after falling 1.3 points in September, thanks to a temporary shift of production to Japan from flood-hit Thailand, which helped spur industrial output in October.
In October, six out of the 11 sub-indexes comprising the coincident index rose, including industrial power usage, industrial production and retail sales. Based on the October results, the Cabinet Office maintained its overall assessment, saying that the composite index indicates that the economy has stopped falling.
The leading composite index, which measures the state of the economy three months ahead, stood at 91.5 (unchanged m/m) vs. Sep 91.5 (-2.3 percentage points). However, the lagging CI, which reflects economic conditions three months ago, came in at 85.3 (-3.9 points m/m) vs. Sep 86.2 (+1.8 point), marking the first fall in three months.
In October, six out of the 11 sub-indexes comprising the coincident index rose, including industrial power usage, industrial production and retail sales. Based on the October results, the Cabinet Office maintained its overall assessment, saying that the composite index indicates that the economy has stopped falling.
The leading composite index, which measures the state of the economy three months ahead, stood at 91.5 (unchanged m/m) vs. Sep 91.5 (-2.3 percentage points). However, the lagging CI, which reflects economic conditions three months ago, came in at 85.3 (-3.9 points m/m) vs. Sep 86.2 (+1.8 point), marking the first fall in three months.
Gold has gained in Asian trades today, extending its bounce from one week lows of around $1700 per ounce yesterday as the Euro bounced against the US dollar on the possibility of that the EU officials may significantly boost the region's ability to fight the debt crisis by operating two bailout funds. The talks are focusing on the possibility of allowing the euro-zone's 440 billion euros ($590 billion) bailout fund to remain in operation when a new €500 billion facility comes into force in 2012, according to the media reports.
Gold slipped in tune with the Euro yesterday as after the ratings of 15 Eurozone countries were placed on credit watch by Standard & Poor's Rating, stating tightening credit conditions and failure to resolve the debt crisis and long-term economic challenges. The decision to put the countries on negative credit watch - - which signals a downgrade within 90 days has 50-50 odds- could affect six countries with the rating firm's highest, triple-A rating: Germany, France, the Netherlands, Austria, Finland and Luxembourg.
Nicolas Sarkozy, French president, and Angela Merkel, German chancellor, on Monday called for changes in European Union treaties to improve governance in the Eurozone but said the changes could be restricted to the 17 member countries of the single currency area.
Gold slipped in tune with the Euro yesterday as after the ratings of 15 Eurozone countries were placed on credit watch by Standard & Poor's Rating, stating tightening credit conditions and failure to resolve the debt crisis and long-term economic challenges. The decision to put the countries on negative credit watch - - which signals a downgrade within 90 days has 50-50 odds- could affect six countries with the rating firm's highest, triple-A rating: Germany, France, the Netherlands, Austria, Finland and Luxembourg.
Nicolas Sarkozy, French president, and Angela Merkel, German chancellor, on Monday called for changes in European Union treaties to improve governance in the Eurozone but said the changes could be restricted to the 17 member countries of the single currency area.
Chancellor Merkel made a major reversal when the leaders agreed that private bondholders will not in future be asked/forced to accept losses in another debt restructuring, In effect Greece will be a one-off. The S&P warning has piled up further pressure on leaders to agree a solution for the debt crisis and the next summit of EU leaders is on tomorrow and day after in Brussels.
Gold had hit two-week highs near $1760 per ounce last week but gave up nearly $50 in the first two sessions of the current week on uncertain financial markets and lack of fresh buying. The yellow metal has had another fabulous year and is looking to end 2011 with gains of around 20-22%. The local MCX Gold futures are currently quoting at Rs 28376, up Rs 112 or 0.38% on the day.
Gold had hit two-week highs near $1760 per ounce last week but gave up nearly $50 in the first two sessions of the current week on uncertain financial markets and lack of fresh buying. The yellow metal has had another fabulous year and is looking to end 2011 with gains of around 20-22%. The local MCX Gold futures are currently quoting at Rs 28376, up Rs 112 or 0.38% on the day.
Regards,
We provide you tips of Indian commodity market via high speed internet server so that you can take prompt action and can make more and more profit. This website is totally devoted for clients like you so that you can do tensionless trading tips .
ReplyDeleteWe provide tips on gold prices , silver prices , copper updates , Crude and nickel. We have long experience of Indian commodity market and our aim is that we should provide the best tips like , mcx live tips, , commodity trading tips, to common man through market analysis by our experts at economic cost.