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[ThatHawaiiGuy]

Silver hogs the limelight


Our Commodities Bureau
Published : August 4, 2003

Silver hogged the limelight in the domestic precious metals market following a sharp rise in prices globally. It soared to a 10 week high of Rs 8145 per kilogram, up Rs 85 from Rs 8060 on previous Friday.

Gold lost sheen on weak overseas advice and lacklustre buying. Gold (99.9 purity) fell from Rs 5515 per 10 gram to close at Rs 5430 on Friday while standard gold lost from Rs 5485 to Rs 5400.

Silver had a brief spurt to touch a 3-1/4-year high at $5.21 an ounce on Thursday, but retreated thereafter on Comex on Friday. However it was expected to remain volatile.

Internationally, spot silver was quoted at the day’s high of $5.16/5.18 an ounce by 1005 GMT, up from New York’s $5.13/5.15.

Friday’s London fix was at $5.12, its highest since April 2000. COMEX stocks fell 4,691,604 ounces to 106,502,677 ounces.

Gold continued to retreat on Friday in Europe following a fairly stable overnight session in Asia after the dollar, buoyed by positive news on the US economy, notched up further gains against the euro, agencies reported quoting traders.

Friday’s early London fix was at $353.05. COMEX gold stocks were down 103 ounces at 2,741,550 ounces. Market steadies after an overnight dip as the US dollar takes a breather from its gains against the euro.

Gold was knocked to its lowest in just over a week at just under $352 an ounce and might come under more pressure from the dollar if the next set of data from the United States showed further signs of improvement.

Traders pinpointed $350 as a key level for gold. If it managed to hold above that, it might have a chance of climbing back to recent highs. However, they said a breach of $350 might push prices right back down to $342.

Spot gold was indicated at $352.75/353.50 a troy ounce by 1006 GMT, weaker than New York’s late quote on Thursday at $354.00/354.80. With bullion still tracking dollar/euro movements virtually tick for tick, traders were looking for further direction from US July payroll data and manufacturing data from the Institute for Supply Management due out late on Friday before resuming trade on Monday.

A speculative long position overhanging the New York Comex gold futures market would also make gold vulnerable to further liquidation by funds should the dollar continue to firm.

However, analysts were also mindful of a recent trend that had seen metals — both precious and base — attract buying from investors looking to place their cash in alternative assets.

Platinum slid to its lowest in just over two weeks, attracting speculative selling when it failed to hold above $685 an ounce.

Spot prices dropped to $675.00/680.00, the lowest since July 16 and down from New York’s late quote at $684.00/689.00. Palladium firmed to a 3-1/2 week high of $181.00/186.00 from $175.50/181/50.

http://www.business-standard.com/today/story.asp?Menu=22&story=19910