By Nirmal Bang
MARKET ROUNDUP
Precious metals prices ended largely flat yesterday as the market took a breather after hitting three-month lows the day before. Strong physical bullion demand from top consumer India provided support alongside economic jitters.
IN FOCUS
- The world's largest gold-backed exchangetraded fund, SPDR Gold Trust said its holdings fell to 1,282.28 tonnes by July 28, down 18.55 tonnes from the previous business day.
- The world's largest silver-backed exchange-traded fund, the iShares Silver Trust, said its holdings stood at 9185.29 tonnes as of 28th July, unchanged from the previous business day.
- India's gold imports in July were seen at around 14 tonnes to 15 tonnes provisionally, down from 28.4 tonnes imported last year, the head of the Bombay Bullion Association Suresh Hundia said on Wednesday.
- Medusa Mining said that it managed to achieve a Quarterly production of 25,012 ounces at an average grade of 13.65 g/t at cash cost of $182 per ounce and record annual production of 89,679 ounces. TheForecast production for FY 2010/11 stands at 100,000 ounces
- Gold recoveries of Vatukoula Gold Mines Plc. for Q4 reached 12,940oz bringing total recoveries in YTD to 51,491 ounces. Slightly higher than its revised 50,000 ounce annual forecast for the year ended August 2010.
FUNDAMENTAL OUTLOOK
Precious metals prices rebounded and are trading higher in early trade on COMEX. In the evening session we have the Initial Claims data to be released by the US. With an expectation of a positive data, we may see strength in the dollar during the day. This phenomenon may limit the upside in Precious metals. Silver in particular can be sold on rallies.
