Moneycontrol
Oct 29, 2012 10:36 AM IST | Source: Moneycontrol.com

Buy Gold, Silver on dips: Nirmal Bang

Nirmal Bang has come out with its report on Gold and Silver. According to the research firm, Precious metal prices are trading higher on COMEX today. Expect a further rise in the prices of precious metals on account of an expectation of further loosening of monetary policy by Bank of Japan. Buying at dips is recommended for the day.


Nirmal Bang has come out with its report on Gold and Silver. According to the research firm, Precious metal prices are trading higher on COMEX today. Expect a further rise in the prices of precious metals on account of an expectation of further loosening of monetary policy by Bank of Japan. Buying at dips is recommended for the day.


Precious metals prices edged higher on Friday, a day after it fell under that threshold, boosted by encouraging United Kingdom GDP growth data and expectations the Bank of Japan will further loosen its monetary policy.  Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange traded fund, stood at 1336.30 tonnes by Oct 26, remains unchanged from the previous business day. Holdings in the world's largest silver backed exchange-traded fund iShares Silver Trust stood at 9923.19 tonnes by Oct 26, up by 4.52 tonnes from the previous business day. 


Gold traders are the most bullish in three weeks as investors' bullion holdings rose to a record on mounting speculation that central banks will add stimulus to bolster economic growth. The Jiaodong Peninsula in east China's Shandong Provinceis expected to become a world-class gold production base, a local gold producer said Sunday. The company announced in a statement that it will build a gold production center, with an annual output of 100 tonnes, on the peninsula, which has gold reserves totaling 2,300 tonnes.


Fundamental Outlook:


Precious metals prices are trading higher on COMEX today. We expect a further rise in the prices of precious metals on account of an expectation of further loosening of monetary policy by Bank Of Japan. Buying at dips is recommended for the day.


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