Saturday, January 14, 2012
Weekly Bullion Analysis
Bullion counter can move in range with upside bias as the decline in Green Back supported its prices higher. Gold prices can trade in range of 27500- 28200 in MCX and USD 1,585-1,680 in COMEX in near term. There is another EU summit scheduled for January 30. With the efforts to rescue, the euro region have consistently crumbled and the risks related to a full-blown financial crisis are growing. While white metal silver can hover in range of 51800-54500 in near term. Fitch Ratings do not expect to cut France`s triple-A credit rating this year, while countries under review such as Italy or Spain could be downgraded by one or two notches. Worries about the euro zone debt crisis mounted last week, after Fitch warned the European Central Bank to ramp up its debt purchases to avoid a `tragic` collapse of the single currency, sinking the euro to its 16-month low against the dollar. The prospects of aggressive monetary easing from the world`s key central banks, including the European Central Bank, will support the sentiment for gold and silver. Physical demand in India will pick up as India`s wedding season have restarted from this week and will continue until April. Physical buying from China, the world`s second largest gold consumer, was lukewarm and is expected to tail off this week ahead of the Lunar New Year holiday in the next week.
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