GOLD: Gold regained strength in international markets today after jewellers resurfaced at lower levels. Spot gold added $1.20 to $1,182.80 by 0449 GMT after hitting a low of $1,181.70 an ounce. US gold futures for December delivery rose $1.5 to $1,185.4 an ounce after settling 1.1 percent higher. The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said holdings were unchanged at 1,282.279 tonnes, having dropped more than 18 tonnes in late July. India gold futures were trading steady near its previous session close. August contract opened lower today, but immediately recovered tracking a firm overseas market. On MCX August gold contract last closed at Rs 17,770 per 10 grams. At 10:15 am it traded at 17,750, down 0.11%. "Gold may try to regain some of its lost ground after having posted the biggest monthly losses," Karvy Comtrade Ltd said in a broker note. "MCX gold prices ended down on Saturday after failing to breach the resistance at 17845 levels. Immediate support is at 17760, market sustaining above the same may lead to recovery towards 17845. Break of this resistance can push the market towards 17920," said JRG Wealth Management in a report.
PLATINUM & PALLADIUM: Strong equities around the world lifted platinum group metals despite a lack of buying interest from automakers. Platinum rose to its strongest since late June on fund buying driven by gains in stock markets and industrial metals such as LME copper. Sister metal palladium matched a five-week high hit on Friday. Platinum and palladium are used by the auto industry in catalytic converters to clean tailpipe emissions. "We did see a little bit of demand from the industrial side for palladium last week, but things have slowed down because the price is near $500. The industrial side is just checking for prices," analysts said. "It's also the same thing for platinum. We even see some selling from retail investors," he added. Analysts see platinum prices rising as a gradual economic recovery leads to increased demand for the autocatalyst metal, but some of the euphoria that lifted forecasts earlier this year has evaporated after a hefty correction in May, a Reuters poll showed in late July. At 0450 GMT Spot Platinum traded at $1,581 an ounce, up by $12.00, and Palladium at $496.
COPPER: Copper at Shanghai rose nearly 2% today, following LME upward rally in copper last week. In the previous session copper touched 3-month highs, supported by a weak dollar, but traders and analysts said room for a further rise might be limited. Data over the weekend showed China's manufacturing sector cooled further last month as the government continued to limit lending and curb real estate speculation. But GDP data of the US was good for metals pack, weighing on the greenback, which hit a 3-month low against a basket of currencies. The weakening dollar is supporting the strength in metals. If the dollar stays weak, the trend in metal prices will stay; analysts expect resistance for Shanghai copper at 60,000 yuan and for LME Copper at $7,500. Shanghai's third-month copper futures contract climbed to a near 3-month high of 57,480 yuan a tonne, before easing to 57,340 yuan by 0234 GMT, up nearly 2% from the previous close. 3-month copper on LME hit $7,349, its highest since April 30, eased to $7,337 a tonne. India copper futures opened higher today tracking a firm international copper. The most-active August copper on MCX last ended at Rs 338.35 per kg, but in the morning it opened at 338.60, just after some trading August contract touched to a high of 341.80. "One can buy August copper above 336, targeting 339/342, with a stop loss of 333.2," said Pranav Mer, senior analyst with Mangal Keshav Commodities. Copper at 10:30 am traded at Rs 341.60, up 0.96%.
