Precious metals may continue to rally: Nirmal Bang

Precious metals stayed strong, but eased off earlier 3-week highs after Cyprus' parliament rejected a tax on bank deposits which cast doubt on the country's bailout package, affirming a need for flight-to-safety buying.

Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange traded fund, stood at 1219.45 tonnes by Mar 19, down by 10.84 tonnes from the previous business day.

Holdings in the world's largest silver backed exchange-traded fund iShares Silver Trust stood at 10583.36 tonnes by Mar 19, down by 150.30 tonnes from the previous business day.

South Africa gold miner Sibanye Gold Ltd said on Monday its March quarter output would be cut by 9,542 ounces due to a two-day power outage at its Driefontein mine.

Arizona lawmakers say the global economy is on the precipice of financial ruin and the U.S. dollar could soon be worth less than the paper used to make it. They are pushing forward legislation that would declare privately minted gold and silver coins legal tender, no different under state law than
the U.S. dollar printed by the federal Department of Treasury.

Precious metals are trading higher on COMEX today. We expect precious metals to continue their upward rally as Cyprus's rejection of bailout terms triggered worries about a default and would support bullion prices.

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