Govt considers easing gold import curbs after situation improves: Arun Jaitley

The government will be reconsider easing curbs import of gold once the fiscal situation becomes more comfortable, Finance Minister Arun Jaitley said.

"Not at the moment (easing curbs on import of gold)...if our situation gives me more comfort level, obviously these are flexible polices. They are not engraved in stone that you can't change them," Jaitley told PTI in an interview.

In the past year, India imposed import restrictions of gold, the second largest after oil imports, after a sharp increase in the current account deficit of the country.

However, stimulated curb smuggle in India, the world's largest buyer, through illegal channels "hawala" networks that are casual international remittance.

 India elevated the import tariff of gold last year to 10 percent from 4 percent and also commanded that 20 percent of the imported gold is exported, which is called the 80:20 rule.

The current account deficit (CAD) hit a record high of 4.8 percent of gross inner product, or about $ 88 billion in the fiscal year through March 2013, pushing the rupee to a record low of 68.85 per dollar August.

CAD has been drastically reduced to 1.7% of GDP, or $ 32.4 billion in 2013-14, helped mainly by the collapse of gold imports. Gems and jewelery exports note approximately 15% of total outbound shipments from India and exporters have been pitching for the lifting of import curbs on the yellow metal.

A report by under internal investigation SBI said even if prices rise to $ 115 (the worst), CAD still be below 3% of GDP in the current financial year (2014-15).

CAD of India, which is the surplus outflow of currency on the entries, hit a record high of 4.7 percent of GDP in 2012-13, mainly due to increased imports of gold and oil.

By January-March quarter stood at CAD $ 1.2 billion or 0.2 percent of GDP, compared to $ 18.1 billion, or 3.6 percent of GDP in the same quarter last year, according with the RBI.

He, however, said the government must be careful in the current account deficit (CAD) and fiscal deficit.

"Both CAD and fiscal deficit, I think we have to be cautious and careful," he said.

With the aim of check the increase in CAD​​, the government had posed import duties for the yellow metal to 10 percent, while RBI imposes restrictions on the import of gold and also provides various preconditions for shipments into the metal beautiful.

As a result of the combined efforts, gold imports has been falling. Fell by 72 percent to $ 2.19 billion in May 2014 due to restrictions imposed by the government.

"The budget also has not proposed any any proposal to cut import duty of 10% in gold or relax the strict conditions imposed by RBI for purchasing metal from overseas which has been the demand from industry, said 100McxTips.com"

100McxTips.com a Indian MCX Commodity advisory and generally offers services & news about in bullion gold silver trading market. Follow company Facebook profile page ( https://www.facebook.com/100mcxtips) and get market news tweets @ 100mcxtips 

RBI seeks contributions to exchange gold for improve the quality of reserves

The Reserve Bank of India (RBI) on Wednesday said it searched for contributions from banks to exchange gold for their own vaults of gold international level with the aim of improving managing its reserves.

The RBI said the deal would "normalize gold available at RBI in India regarding to international standards" and gold purchased would be delivered to the foreign custodian, the Bank of England.

With the holding of gold stocks in London, the RBI could be become more flexible in order to mobilize if necessary to defend the currency. It is sent to some of its gold holdings to Britain in 1991 as part of a series of emergency actions to deal with a financial crisis.

With leadership from Governor Raghuram Rajan, named last year, the RBI has attempted to upgrade its market operations and enhancing the management of the foreign exchange and gold reserves are a total value of around $ 315 billion.

According to the World Gold Council, India has the 11 largests gold reserves of 557 tons. At current market prices, which would be worth almost $ 24 billion. It was not immediately clear how much of that is to be exchanged.

"RBI, in consultation with the government, decide what further amount that exchange-rate, timed, etc. Gold to be exchanged is concerned," the RBI said in a email reply to questions from Reuters.

The Economic Times informed previously that RBI had probed bankers into a relatively impure, plan to exchange some old gold which has been lying in its own arches since before the independence in 1947.

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Gold prices moved down on global cues

Gold futures August delivery settled down 0.21% to Rs 27,630 per 10 gm on MCX in morning trading. Gold price hit an intraday high of Rs 27,669 and an intraday low of Rs 27,617. So far 761 contracts have entered into trade. The prices of gold have gone down Rs 1658, or 5.66 percent in August series so far.

"The price of gold in India has declined as international prices have fallen despite becoming weaker rupee," said 100McxTips. "Not much market activity like everyone else is waiting for the announcement of the budget 2014-15. Outlook for gold remains on the downside."

In the spot market, gold moved around 28,100 rupees per 10 grams, down by nearly Rs 200 since last Friday.

" We hope that spot prices for trading gold on the upside such as increasing geopolitical tensions in Iraq and dispute between Russia and Ukraine can worsening in demand for safe haven. In addition, weak dollar after weak U.S. economic data can be sustain prices to trade in green. Moreover, the decision of the U.S. Fed to continue its accommodative monetary policy can act good for prices. However, the increased risk appetite in the global markets may restrict sharp spike in in prices. Investors remain cautious before of U.S. economic data and the Euro Zone. In native markets depreciation in Indian rupee may support prices. ", said 100 Mcx Tips Commodity Advisory.

"There is a lot of volatility in the marketplace. Stroke is in range. All eyes are focused on the current budget, which was presented on July 10. Monsoon is also essential for the extraction of gold," said a bullion dealer with based in Mumbai. Nearly 60% of gold consumption in India is explained by the rural India.

The price of the yellow metal posted strong gains of over 5% of $ 1250 to $ 1320 level. As mean the demand for investment for this product has been lower in the last months. Performance SPDR gold holdings remained stable with investing in ETFs was a little higher than 782 tonnes to 785 tonnes. Physical demand in China and India, the two largest consumers worldwide have been systematically lower.

100McxTips.com a Indian MCX Commodity advisory and generally offers services & news about in bullion gold silver trading market. Follow company Facebook profile page ( https://www.facebook.com/100mcxtips) and get market news tweets @ 100mcxtips

Gold volatile on concern about weak physical demand

Gold was marginlly changed in the Asian markets early Friday, but could be facing a volatile trading on concerns about weak physical demands on top of China's consumers and finding $ 15 billion of loans linked with the agreements fake gold in the country.

Chinese processing companies have used fake gold trades from 2012 to borrow 94.4 billion yuan ($ 15.2 billion) from banks, said the chief auditor of the country.

Gold was marginlly changed in the Asian markets early Friday, but could be facing a volatile trading on concerns about weak physical demands on top of China's consumers and finding $ 15 billion of loans linked with the agreements fake gold in the country.

Chinese processing companies have used fake gold trades from 2012 to borrow 94.4 billion yuan ($ 15.2 billion) from banks, said the chief auditor of the The majority of deals on commodity financing are legitimate, but disclosures false transactions based on the gold market, on the heels of suspected fraud in the metals financing Qingdao port, loans may encourage the authorities to launching another offensive against the financing of commodities.

Spot gold held steady at $ 1,317.76 an ounce by 0331 GMT, after losing 0.1 percent in the previous session.

"It's a wait and watch the status for now, but only if these agreements golden start to relax, there might be a reduction in imports, but not a steep decline," said a trader in Shanghai.

The imports of gold Hong Kong, China are already in the lower levels, with overseas purchases in May fell at its lowest level since January last year round as the rate of purchase of calms down after a record high 2013.

The Shanghai trader said that despite the recent weakness in demand, the global appetite for gold remains strong.

Demand from China has been quiet the last few months as a weaker yuan been blunted by the attractiveness of metal.

The demand from the main Indian consumers has also been undergone since the industry expected a prospective decline in rules on gold imports.

Gold may be also under pressure following comments by a official of the U.S. Federal Reserve that interest rates end of the first quarter of 2015 would be appropriate.

Meanwhile, the technical picture for gold, it positive in the near future, 100McxTips Trading Services analysts said.

"The technical profile reveals the chance of a short-term boost to the area of ​​$ 1.370 to 72" ANZ analysts said. "But this would be seen as a range of motion blur medium term, instead of an inversion of the downward trend."


100McxTips.com a Indian MCX Commodity advisory and generally offers services & news about in bullion gold silver trading market. Follow company Facebook profile page ( https://www.facebook.com/100mcxtips) and get market news tweets @ 100mcxtips

Why silver outperforming gold and has not yet ended

Silver has in silence scored twice as percentage gains of gold this month, and silver prices are likely did not exceed out during the year.

The actual value of the silver far from being a reality, "said 100McxTips Experts.

Tracking the Delhi market, silver prices have gained roughly at Rs 45,000 June month to date 26, compared with gold down at Rs 28,600.

Silver has a price like it was far more common than gold, but can be very weirder than the price suggests, 100McxTips said. Due to its antibacterial properties and the ability to conduct heat and power, silver is also may prove to be even more important as an industrial metal, "causing a shortage of supply."

Of the 19 market sessions this month, prices of silver have dropped just three times, while the prices of gold registered declines five of them. And while the the prices of gold recently negotiated just over up to two months, the silver threaded their highest level in more than three months.

Analysts said that silver's recent gains to a certain safe haven demand on the heels of the crisis in Iraq. But also said that the improvement in the economic data it helped raise the prospects for metal demand.

The majority of the bullish move of silver was caused by rising demand and this was fueled by improving economic data, which reached the belt earlier this week and last week in the U.S., said 10McxTips.

Proofreading HSBC China's manufacturing sector for May hit a seven months. In the U.S., industrial production in May rose more than you expected and an index of production conditions in the Philadelphia region climbed to the highest reading since last September.

But Wednesday, data showed the U.S. economy shrank 2.9% in the first quarter. Weekly data Thursday found that jobless claims are held near a post-recession low consumer spending and May rose less than expected.

They said that, with increased resistance to silver around Rs 45,000 mark and recent performance of metal, a "small correction" could be on the cards.

In the long term, "silver can keep ahead because fails its precise purpose as gold", which may be viewed as a trade-off of risk and security against inflation, he said. And silver can "keep raising whether the growth starts retrieving and the public view more appetite for jewelry."

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Gold gains continue as mixed U.S. economic data

Gold - Silver is shone. MCX gold is previously showing gains. Gold price has crossed Rs 26,500. In Delhi, gold of 99.9 and 99.5 per cent purity went up by Rs 360 each to Rs 27,600 and Rs 27,400 per ten grams.

Gold surged both on the spot and futures markets Friday, tracking global prices that rose overnight following fresh concerns as mixed U.S. economic data released on Thursday.

At noon, the August  futures contract for gold on MCX traded at 0.44% at Rs 26,447 per 10 grams. An intraday high was Rs 26,469 and the low, Rs 26,321.

In the spot market, gold surpassed the Rs 27,000-per-10-g after almost a week. It was the last to Rs 27,062.

In the international marketplace, gold traded close up of a two-week high, and is publishing the first weekly back-to-back gain since April, in that the U.S. recovery may be bogged and violence in Iraq will enhance the demand driven by a shelter.

"We expect the market to remain choppy gold with the negative sentiment the coming week. If riots Iraq gains momentum, then it will support the gold prices," said commodity experts.

In India gold demand is low, saying traders.

"There is almost no golden demand in the market. Usually June and July are boring months for the trading gold. Prices is little progress slowly upward as the international price of gold is rising," said Prithviraj Kothari, vice president of Association of Indian Jewellers and bullion. Depreciation of the rupee versus the dollar on Friday, has added to domestic prices, Kothari said.

Gold for immediate delivery slipped 0.2% to $ 1271.39 an ounce at 14:16 in Singapore after going up to $ 1275.65, the highest level since May 27, according to Bloomberg generic prices. The metal adding 1.4% this week after increasing 0.3% the week before.

Bullion has risen 5.8% this year, in part, as the events between Ukraine and Russia spurred demand for safer investment. Gold gained 1% on Thursday, mostly from May 2 since the riots in Iraq oil led to an eight-month high and submitted inventories tumbling. U.S. data on Thursday showed than retail sales rose less than expected while jobless claims beat estimates, according to international news agencies.

100McxTips.com a Indian MCX Commodity advisory and generally offers services & news about in bullion gold silver trading market. Follow company Facebook profile page ( https://www.facebook.com/100mcxtips) and get market news tweets @ 100mcxtips

Commodities Outlook, MCX Gold August contract in bearish trend

The price of gold edged up in Asia on Friday as a continuation of the ultra-loose monetary policy by the ECB (European Central Bank) during the night with the outbreak now on U.S. The data, which is expected to show a profit of 218,000 jobs. The European Central Bank cut its benchmark interest rate to a historical low of 0.15% Rate 0.25% since November of the same same day. We hope that the spot price of gold to trade on positive note by the European Central Bank cut its benchmark interest rate by 0.1 percent. In addition, weakness in DX and expectation of fall in U.S. data Non-Farm Employment Change can support the prices to trade positively.

However, the world market optimistic sentiments can lead to lower demand for safe haven and expectations in market players that the U.S. Fed may continue to reducing their stimulus package as fast may limit recent sharp rise in prices.

Above all else, the future is in MCX Gold August downtrend and moreover we saw a good selling pressures going last week. MCX GOLD August contract was trading down at Rs 25960. The GOLD rate touched an intraday high of Rs 25988 and an intraday low of Rs 25915. So far 1244 contracts have been traded.
So for the coming week, little bid for the lower levels are expected. For next week 25690/25250 will act as major support while 26340/26560 will act as a major resistance level in the MCX Gold August Contract. For the next week MCX Gold trader can use buy on lower level strategy if MCX Gold August futures contract holds above 26000 levels, then it could test the levels of 26200/26340.

Last week, MCX Silver July futures contract was trading at down Rs 40277. The SILVER rate touched an intraday high of Rs 40361 and an intraday low of Rs 40113. So far 1715 contracts have been traded.
Technically MCX Silver futures contract for July is the strengthening and maintenance around the lowest level. For next week 42800/44000 will perform as major resistance levels where as 39000/37500 will act as substantial support in MCX July silver futures. For the next week MCX Silver futures, traders can use buy on lower level strategy if MCX Silver July futures contact holding above 40500, then it could test the levels of 41500/42800.

100mcxtips.com a Indian MCX Commodity advisory and generally offers services & news about in bullion gold silver trading market. Follow 100McxTips company Facebook profile page ( https://www.facebook.com/100mcxtips) and get market news tweets @ 100mcxtips