Strong dollar and pressured crude help drag down bullion metals


After rising for two successive days, gold and silver prices fell today, Wednesday, 20 August, 2008 as the dollar remained quite strong. Pressure on crude prices following the weekly inventory report by the Energy Department also put pressure on the bullion metals easing their appeal as a hedge against inflation. Barring previous two days, and one day in between, gold and silver prices had registered losses in all the trading sessions in the current month of August, 2008. Silver prices also fell today.

Today, Comex Gold for December delivery fell $0.5 (0.05%) to close at $816.3 ounce on the New York Mercantile Exchange. It fell to an intra day low price of $806.4 earlier. Last week, the yellow metal gave up 8.4%. With today’s loss, it has lost 11.35% in August, 2008 till date. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (21%) since then.

This year, gold prices have lost 2.6% till date as the dollar rallied against the euro. It has lost almost $105 in August till now. Gold ended July, 2008 lower by $11 (1.1%).

Prior to that, the yellow metal ended second quarter with a marginal gain of 0.7%. It ended June, 2008 with a gain of 4.1%. In May, it ended with a gain of higher by $22.5 (2.5%). Before May, in April, prices closed lower by 6.3%. For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%.

On Wednesday, Comex silver futures for September delivery fell 6.5 cents (0.5%) to $13.153 an ounce. With today’s rise silver has lost almost 11.5% in 2008 till date. Last week, it gave up 16.4%. It ended July 2008 with a gain of 3%. For the second quarter, it had gained a paltry 1.4%. Silver had gained 16% in Q1. The metal also had gained for seven straight years.

Gold and silver prices have dropped 21% and 36% from their all time highs that they reached earlier this year.

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices and vice versa.

At the currency markets on Wednesday, the dollar gained as much as 0.7% against the euro after losing almost that amount in the previous two days. Worries about growth outside the U.S. allowed the dollar to rebound on Wednesday, sending the euro back toward six-month lows against the greenback and lifting the U.S. unit against most major counterparts. The dollar index, which measures the greenback against a trade-weighted basket of currencies, rose to 76.92 from 76.746 in the previous day.

At the crude market on Wednesday, crude oil rose marginally after a government report showed that U.S. crude inventories rose market highest weekly gain in almost seven years. Crude oil for September delivery rose 45 cents (0.4%) to settle at $114.98 a barrel.

As per the weekly report issued by the Energy Information Administration (EIA) wing of the Energy Department, crude supplies rose by 9.4 million barrels to 305.9 million for the week ended 15 August, 2008. Market was expecting a build up of just 1 million barrels. Refinery utilization was at 85.7% compared with 85.9% of capacity a week earlier. EIA also reported that motor gasoline supplies fell by 6.2 million barrels to 196.6 million barrels during the week. Distillate stocks were up 500,000 barrels at 132.1 million barrels. The gasoline decrease was almost twice the expected decrease.

Gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.

At the MCX, gold prices for October delivery closed higher by Rs 3 (0.02%) at Rs 11,572 per 10 grams. Prices rose to a high of Rs 11,807 per 10 grams and fell to a low of Rs 11,465 per 10 grams during the day’s trading.

At the MCX, silver prices for September delivery closed Rs 20 (0.1%) higher at Rs 19,692/Kg. Prices opened at Rs 20,260/kg and rose to a high of Rs 20,391/Kg during the day’s trading.
-CM
...

Strong dollar and pressured crude help drag down bullion metals


After rising for two successive days, gold and silver prices fell today, Wednesday, 20 August, 2008 as the dollar remained quite strong. Pressure on crude prices following the weekly inventory report by the Energy Department also put pressure on the bullion metals easing their appeal as a hedge against inflation. Barring previous two days, and one day in between, gold and silver prices had registered losses in all the trading sessions in the current month of August, 2008. Silver prices also fell today.

Today, Comex Gold for December delivery fell $0.5 (0.05%) to close at $816.3 ounce on the New York Mercantile Exchange. It fell to an intra day low price of $806.4 earlier. Last week, the yellow metal gave up 8.4%. With today’s loss, it has lost 11.35% in August, 2008 till date. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (21%) since then.

This year, gold prices have lost 2.6% till date as the dollar rallied against the euro. It has lost almost $105 in August till now. Gold ended July, 2008 lower by $11 (1.1%).

Prior to that, the yellow metal ended second quarter with a marginal gain of 0.7%. It ended June, 2008 with a gain of 4.1%. In May, it ended with a gain of higher by $22.5 (2.5%). Before May, in April, prices closed lower by 6.3%. For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%.

On Wednesday, Comex silver futures for September delivery fell 6.5 cents (0.5%) to $13.153 an ounce. With today’s rise silver has lost almost 11.5% in 2008 till date. Last week, it gave up 16.4%. It ended July 2008 with a gain of 3%. For the second quarter, it had gained a paltry 1.4%. Silver had gained 16% in Q1. The metal also had gained for seven straight years.

Gold and silver prices have dropped 21% and 36% from their all time highs that they reached earlier this year.

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices and vice versa.

At the currency markets on Wednesday, the dollar gained as much as 0.7% against the euro after losing almost that amount in the previous two days. Worries about growth outside the U.S. allowed the dollar to rebound on Wednesday, sending the euro back toward six-month lows against the greenback and lifting the U.S. unit against most major counterparts. The dollar index, which measures the greenback against a trade-weighted basket of currencies, rose to 76.92 from 76.746 in the previous day.

At the crude market on Wednesday, crude oil rose marginally after a government report showed that U.S. crude inventories rose market highest weekly gain in almost seven years. Crude oil for September delivery rose 45 cents (0.4%) to settle at $114.98 a barrel.

As per the weekly report issued by the Energy Information Administration (EIA) wing of the Energy Department, crude supplies rose by 9.4 million barrels to 305.9 million for the week ended 15 August, 2008. Market was expecting a build up of just 1 million barrels. Refinery utilization was at 85.7% compared with 85.9% of capacity a week earlier. EIA also reported that motor gasoline supplies fell by 6.2 million barrels to 196.6 million barrels during the week. Distillate stocks were up 500,000 barrels at 132.1 million barrels. The gasoline decrease was almost twice the expected decrease.

Gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.

At the MCX, gold prices for October delivery closed higher by Rs 3 (0.02%) at Rs 11,572 per 10 grams. Prices rose to a high of Rs 11,807 per 10 grams and fell to a low of Rs 11,465 per 10 grams during the day’s trading.

At the MCX, silver prices for September delivery closed Rs 20 (0.1%) higher at Rs 19,692/Kg. Prices opened at Rs 20,260/kg and rose to a high of Rs 20,391/Kg during the day’s trading.
-CM
...

Strong dollar and pressured crude help drag down bullion metals


After rising for two successive days, gold and silver prices fell today, Wednesday, 20 August, 2008 as the dollar remained quite strong. Pressure on crude prices following the weekly inventory report by the Energy Department also put pressure on the bullion metals easing their appeal as a hedge against inflation. Barring previous two days, and one day in between, gold and silver prices had registered losses in all the trading sessions in the current month of August, 2008. Silver prices also fell today.

Today, Comex Gold for December delivery fell $0.5 (0.05%) to close at $816.3 ounce on the New York Mercantile Exchange. It fell to an intra day low price of $806.4 earlier. Last week, the yellow metal gave up 8.4%. With today’s loss, it has lost 11.35% in August, 2008 till date. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (21%) since then.

This year, gold prices have lost 2.6% till date as the dollar rallied against the euro. It has lost almost $105 in August till now. Gold ended July, 2008 lower by $11 (1.1%).

Prior to that, the yellow metal ended second quarter with a marginal gain of 0.7%. It ended June, 2008 with a gain of 4.1%. In May, it ended with a gain of higher by $22.5 (2.5%). Before May, in April, prices closed lower by 6.3%. For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%.

On Wednesday, Comex silver futures for September delivery fell 6.5 cents (0.5%) to $13.153 an ounce. With today’s rise silver has lost almost 11.5% in 2008 till date. Last week, it gave up 16.4%. It ended July 2008 with a gain of 3%. For the second quarter, it had gained a paltry 1.4%. Silver had gained 16% in Q1. The metal also had gained for seven straight years.

Gold and silver prices have dropped 21% and 36% from their all time highs that they reached earlier this year.

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices and vice versa.

At the currency markets on Wednesday, the dollar gained as much as 0.7% against the euro after losing almost that amount in the previous two days. Worries about growth outside the U.S. allowed the dollar to rebound on Wednesday, sending the euro back toward six-month lows against the greenback and lifting the U.S. unit against most major counterparts. The dollar index, which measures the greenback against a trade-weighted basket of currencies, rose to 76.92 from 76.746 in the previous day.

At the crude market on Wednesday, crude oil rose marginally after a government report showed that U.S. crude inventories rose market highest weekly gain in almost seven years. Crude oil for September delivery rose 45 cents (0.4%) to settle at $114.98 a barrel.

As per the weekly report issued by the Energy Information Administration (EIA) wing of the Energy Department, crude supplies rose by 9.4 million barrels to 305.9 million for the week ended 15 August, 2008. Market was expecting a build up of just 1 million barrels. Refinery utilization was at 85.7% compared with 85.9% of capacity a week earlier. EIA also reported that motor gasoline supplies fell by 6.2 million barrels to 196.6 million barrels during the week. Distillate stocks were up 500,000 barrels at 132.1 million barrels. The gasoline decrease was almost twice the expected decrease.

Gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.

At the MCX, gold prices for October delivery closed higher by Rs 3 (0.02%) at Rs 11,572 per 10 grams. Prices rose to a high of Rs 11,807 per 10 grams and fell to a low of Rs 11,465 per 10 grams during the day’s trading.

At the MCX, silver prices for September delivery closed Rs 20 (0.1%) higher at Rs 19,692/Kg. Prices opened at Rs 20,260/kg and rose to a high of Rs 20,391/Kg during the day’s trading.
-CM
...

EIH soared 4.46% to Rs 135.90 at 13:59 IST on BSE after 5.80 lakh shares, or 0.14% of the company’s equity changed hands in a block deal at Rs 140 on BSE.


Meanwhile, the BSE was down 316.94 points, or 2.16%, at 14362.

On BSE, 8.91 lakh shares were traded in the counter. The scrip had an average daily volume of 57,799 shares in the past one quarter.

The stock hit a high of Rs 141.40 and a low of Rs 129.10 so far during the day. The stock had a 52-week high of Rs 246.95 on 7 January 2008 and a 52-week low of Rs 104 on 9 June 2008.

The scrip had underperformed the market over the past one month till 20 August 2008, rising 7.56% compared to the Sensex’s 7.65% gain. It had, however, outperformed the market in the past one quarter, falling 4.27% compared to Sensex’s 14.81% fall.

The mid-cap hospitality firm has an equity capital of Rs 78.59 crore. Face value per share is Rs 2.

The current price of Rs 135.90 discounts its Q1 June 2008 annualised EPS of Rs 3.87, by a PE multiple of 35.11.

EIH\'s net profit rose 3.6% to Rs 38.01 crore on a 9.6% rise in sales to Rs 236.25 crore in Q1 June 2008 over Q1 June 2007.

EIH owns and operates luxury hotels and resorts in India under the name ‘Oberoi’. The company also manages a mid-price hotel chain in India, in addition to hotels in Egypt, Australia, Sri Lanka, Indonesia and Saudi Arabia.


...

K S Oils (down 1.08% at Rs 68) reported a fifth highest volume of 44.33 lakh shares on BSE. The stock have been included in the derivative segment of the National Stock Exchange effective today.
...

Ispat Industries (down 3.40% at Rs 25.60) reported a fourth highest volume of 52.90 lakh shares on BSE. ...

Dish TV India (up 2.04% at Rs 39.90) reported a third highest volume of 81.99 lakh shares on BSE. Dish TV, besides 38 other stocks, have been included in the derivative segment of the National Stock Exchange effective today, 21 August 2008. ...

I think good time ahead for Nagarjuna Constructions. CMP looks very attractive and can easily gain 20-25% in short term. The only hindrance is the prevailing dull phase in Infra Sector, which can change any time....

What about gas linkage...

Wow.. This is great news for people like us..LOL.. ...

I bought this stock at Rs.496, now its going down. shall i hold or sell?...

I have 20 shares of HDIL. Its not in the multiple of 7. Can any body tell me how the distribution will take place in this case? Thank you!!!...

These people should buy these stocks at any price since the book value of this co is 224 and is back to black....

Reliance Capital is a buy at CMP and surely a very good buy on dips at all levels, will definetely be moving northwards any time.FFIs a just not participating but are very carefully have a watch on the Indian Markets, mind it that currently they are not in a good to pump any fresh investment but have very selectively take money out, though very little from the Indian Markets and will return very soon in a big way....