Silver, gold reacts downward on global cues

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Silver, gold reacts downward on global cues
On June 11, 2011, the prices of silver declined at the local bullion market as a result of the constant speculative and stockist sell-off which was due to the bearish global sentiment.

The silver ready (.999 fineness) fell by Rs 1,320 per kg to finish at Rs 55,010 from Friday's closing level of Rs 56,330 per kg while the July silver lost USD 1.10 to USD 36.33 an ounce.

Similarly, the gold also fell due to the fresh stockist offering in a lacklustre activity on account of the weak domestic buying interest.

The standard gold (99.5 purity) fell by Rs 70 per 10 grams to close at Rs 22,355 from overnight closing level of Rs 22,425 while the pure gold (99.9 purity) declined by Rs 65 per 10 grams to end at Rs 22,460 as against Rs 22,525 yesterday.

Moreover, in New York, the gold for August delivery fell by USD 13.50 to USD 1,529.20 an ounce on the Comex division of the NYMEX yesterday.

In the global market, the precious metals fell due to the stronger dollar and easing inflationary worries which reduced the investment demand.

The total above ground stocks of gold is estimated to be around 1,63,000 tonnes by Gold Fields Minerals Services (GFMS) as on end of 2008 and out of this total stock, 51% is estimated to be present as jewellery, 18% as official reserves, 17% held as investment, 12% used for industrial purposes and 2% is unaccounted for.

Meanwhile, some of the worlds gold markets are OTC markets at London (LBMA), New York and Zurich, Gold derivative exchanges at New York - CME (COMEX), Tokyo (TOCOM) and Mumbai (MCX) while Istanbul, Dubai, Hong Kong and Singapore are doorways to important consuming regions.

Gold is the oldest precious metal known to man and for thousands of years it has been valued as a global currency, a commodity, an investment and simply an object of beauty.

Read more about: gold, silver, commodities, trading, mcx
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