Precious metals may rally on fresh stimulus hopes from US

Precious metals prices rushed to a six-month peak as investors speculated the Federal Reserve will launch a third round of quantitative easing or bond buying to help the U.S. economic recovery

Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange traded fund, stood at 1293.14 tonnes by Sep 07, remains unchanged from the previous business day. Holdings in the world's largest silver backed exchange-traded fund iShares Silver Trust stood at 9734.23 tonnes by Sep 07, remains unchanged from the previous business day. Shipments of gold to China from Hong Kong nearly doubled in July from a year earlier, while imports from China rose 11 percent on the month to the secondhighest level in at least 11 years, official Hong Kong trade data showed on Monday. Money managers, including hedge funds and other large speculators, raised their bullish bets in gold and silver to their largest holding since March on expectations of easing measures from major central banks. Speculators in gold raised their net length by 13,088 contracts to 144,775 contracts during the week ended Sept. 4, data from the Commodity Futures Trading Commission (CFTC) showed on Friday.

FUNDAMENTAL OUTLOOK

Precious metals prices are trading higher on COMEX today. We expect further rise in the prices of precious metals on account of fresh stimulus hopes from US.

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