COMMODITIES

Gold prices gained in Asian trade Friday mainly on a weak dollar while fragile US and China economic growth data boosted its appeal as an alternative asset. Gold for immediate delivery was seen trading at $ 1208.87 an ounce at 12.00 noon Singapore time while U.S. gold futures for August delivery were at $1,209.30 per ounce.

Vietnam's decision to allow gold imports evoked mixed response among gold traders and consumers. Vietnam Gold Business Association said the decision helped boost gold trade and helped prices to ease in comparison with global prices.

Gold rose on Thursday, benefiting from a retreat in risk appetite after soft U.S. economic data knocked stocks, the dollar and industrial commodities lower. Spot gold was bid at $1,211.70 an ounce at 1528 GMT against $1,207.50 late in New York on Wednesday. U.S. gold futures for August delivery rose $5.40 to $1,212.40.

Oil reversed earlier gains to fall below $76 a barrel on Thursday after falls in U.S. equities and weak macroeconomic data curbed expectations for future demand growth in the world's largest oil consumer. By 1416 GMT front-month U.S. crude was trading down $1.50 at $75.54 a barrel, after earlier jumping to $77.66. ICE Brent was down $1.25 at $75.52 a barrel.

Gold rose in Europe on Thursday as the dollar slipped to a two-month low against the euro, under pressure after minutes from the June Federal Reserve meeting heightened concerns over the U.S. economy. Spot gold was bid at $1,213.20 an ounce at 1144 GMT, against $1,207.50 late in New York on Wednesday. U.S. gold futures for August delivery rose $6.60 to $1,213.60.

Till now India has been the biggest consumer of gold but gold exchange traded funds (ETFs) were not much popular in India. However, things are changing fast in India. More and more people are now putting their money on Gold ETFs. As a sign of this, India's gold collection under exchange-traded funds rose 76 per cent in June from a year ago to 10.453 tonnes.

Oil reversed early losses and rose toward $78 a barrel on Thursday after a bounce in equities overshadowed earlier news pointing to flatter economic growth in the world's number two oil consumer China. European shares turned positive after JP Morgan Chase & Co reported second-quarter earnings, adding to evidence of the strong correlation between oil and equities.

Oil fell for a second day on Thursday to below $77 after a slowdown in Chinese economic growth in the second quarter and U.S. Federal Reserve minutes renewed concerns about the recovery of the world economy.

Gold edged up on Thursday after China's growth data for the second quarter was slightly weaker than expected, helping revive the precious metal's allure as a hedge at a time of economic uncertainty. Meanwhile, economists expect Beijing to make no dramatic policy response to Thursday's data, which is seen as positive for the precious metal's demand in China, analysts said.

Gold thrives on tragedies. And, it has proved once again that any economic crisis will help gold rise. This is the turn of Portugal, which is facing economic crisis like Greece. As the news spread about Portugal's economic woes, gold prices surged on Monday and Tuesday.

Gold prices gained momentum, from weak Chinese growth data for the second quarter, in Asian trade Thursday after dropped overnight on profit taking. Gold for immediate delivery was seen trading at $1212.67 an ounce at 12.00 noon Singapore time while U.S. gold futures for August delivery was at $1212.76 an ounce.

Crude oil rallied as high as 78.15 after the US Energy Department reported crude inventory fell more than expected. However, gains were erased as the FED downgraded its economic forecasts. Disappointing retail sales also weighed on prices. The front-month WTI contract closed largely flat at 77.04. Today in Asia, prices remain under pressure as China's GDP growth eased to +10.3% in 2Q10, signaling the tightening policies have been effective.

World's top rice producer, China reduced the 2010 rice output forecast to 196.6 million metric tons from an estimate of 197.3 million tons made a month ago. According to China National Grain & Oils Information Center production forecasts for other crops were maintained at 168 million tons of corn, 115.1 million tons of wheat, 14.5 million tons of soybeans and 12.6 million tons of rapeseed.

Palladium's surplus is set to shrink by 62 per cent this year following an increase is car sales across the globe. The excess supply of platinum will also increase. Palladium demand will fall short of supply by 217,000 ounces this year, down from 578,000 ounces in 2009, said analysts. Consumption by the car industry will advance 15 per cent to 4.6 million ounces, they predicted. Palladium is used in catalytic converters in cars to reduce pollution.

In all likelihood, India is set to go for commercial exploration of platinum following very promising discovery of the precious metal along the 150-km belt in Tamil Nadu and adjoining Kerala. Once the government takes a deeper exploration of 100-200 metres, the researchers expect the find to be even more substantial, which could lead to viable commercial exploration. Till now, the exploration has been carried out only up to 30 metres and it is very promising.

Global oil prices continued its overnight gains in Asian trade Wednesday mainly on signs of increase in fuel demand amid strong stocks and weak dollar. Light sweet crude for August delivery was seen trading at $77.19 a barrel at 11.30 a.m Singapore time while Brent crude was at $ 76.75 a barrel in London. Stock markets across Asia rose to a three-week high, following the sixth straight rally for Wall Street, led by the technology sector after chip-maker Intel results beat expectations.

China's largest steel and iron conglomerate, Baosteel is planning to build a commercial plant near one of its factories to convert waste gas to ethanol. The plant, which will be built by New Zealand-based clean technology company LanzaTech, has an initial capacity to produce200 million litres of ethanol per year from the plant's waste gas.

Gold remained highly volatile in Asian trade Wednesday as prices mixed from overnight gains. Spot gold was seen trading at $ 1211.68 an ounce at 11.30 a.m Singapore time while U.S. gold futures for August delivery was at $ 1212.02 am ounce on the Comex.

Gold rose nearly 2 percent to $1,217.60 an ounce in Europe on Tuesday after a ratings agency downgrade of Portugal knocked the euro, boosting the metal's appeal as a hedge against currency market volatility.

Last week, Commodity Online had reported that several central banks had pawned their gold reserves to the Bank for International Settlements (BIS) to raise cash and this may impact the gold market in the coming days.

Gold prices edged up in Asian trade Tuesday mainly on investor's buying interest after prices dropped below the psychological barrier of $1200 an ounce. Gold for immediate delivery was seen trading at $ 1199.58 an ounce at 12.30 p.m Singapore time while U.S. gold futures for August delivery was at $ 1199.47 an ounce on the Comex in New York.

Oil retreated on Tuesday to stay below $75, tracking Asian equities lower and on forecasts for a seventh straight weekly gain in distillate fuel inventories at top consumer the United States. Chinese stocks fell 2 percent on reports that Beijing will not relax tougher property measures any time soon, curbing early gains in other Asian equity markets and tempering strong U.S. corporate earnings and forecasts for a fourth consecutive weekly fall in the nation's crude stockpiles.

Gold clawed back to near $1,200 per ounce on Tuesday on light physical buying, but further gains were capped by investor caution ahead of the U.S. corporate earnings season and firmness in the dollar.

Gold eased in Europe on Monday, falling for the fourth time in the last seven sessions, as improved investor confidence boosted the dollar and sapped investment flows into the precious metals complex. Spot gold was bid at $1,203.85 an ounce at 1440 GMT, against $1,211.85 late in New York on Friday. U.S. gold futures for August delivery eased $5.60 an ounce to $1,204.20.

Russia's government has bought out from the country's diamond monopoly Alrosa $1 billion worth of diamonds to support the company and the diamond market amid the global economic crisis. Many diamond mining companies showed responsibility amid the economic downturn, when they drastically cut the supply and contributed to stabilizing the prices for rough diamonds, mainly last year.

Gold slipped in Europe on Monday, surrendering some of the previous session's more than 1 percent gains, as the dollar firmed and investment flows into the metal dried up as concerns over euro zone risk receded.

Diamonds giant De Beers has set its eyes on Indian market in a big way. The company has decided to launch its 'Forevermark' brand in India, with an aim of creating a more affordable line of jewellery targeted at the middle income segment.

U.S. crude oil futures fell below $76 per barrel on Monday, consolidating after a week of gains and ahead of quarterly U.S. company earnings and key macro-economic data. S&P 500 .SPX earnings are expected to have risen more than 25 percent in the second quarter but the outlook for consumer demand is less bright. U.S. retail sales figures on Wednesday are expected to show spending easing in June.

All miners in the world are now eyeing Zimbabwe. Reason: The country is witnessing major changes in the mining sector and Zimbabwe is one of the biggest sources of platinum group metals. Zimbabwe is witnessing a revival in its mining sector, with major companies committing to a number of significant platinum projects. And, if Zimbabwe decides to tap its mining resources properly, the country will be on way to high growth.