COMMODITIES

Increased demand from investors and steady depletion of Russian state stockpiles are likely to bring the palladium market into balance in 2010. According to UK investment bank Barclays, despite an expected increase in supply, strong growth in investment demand, coupled with the possible exhaustion of Russian state supplies has the potential to balance the market in 2010, and even drive it into deficit.

Oil slipped on Friday, heading for a weekly drop of 1.3 percent, as falling equity markets tempered an early boost from indications that the first storm of the Atlantic hurricane season might be developing. Asian stocks slid on Friday for a fourth straight session, driven by expectations of tighter financial regulation and uncertainty about the global economic recovery ahead of the weekend G20 meeting. Concerns about the Greek debt crisis had also sent Wall Street lower on Thursday.

Gold dropped on Friday as early buying linked to crumbling stock markets subsided, but a rise in ETF holdings to a record high indicated persistent worries over the global economy. Investors were also looking to the Group of 20 summit this weekend in Toronto, where leaders from rich and developing nations will discuss how to plot the world's emergence from the worst financial crisis since the Great Depression.

Gold price rebounded strongly after being pressured in early trading session amid renewed concerns over defaults in peripheral European bonds. CDS for Greek bonds jumped to a record level while that for Spanish and Portugal bonds also soared. Weakness in market sentiment boosted flight for safety and sent gold modestly higher. The benchmark contract closed at 1245.9, up +0.90% but remained -1.63% below the all-time high at 1266.5 (June 21). Today in Asia, gold changes little but reduction in ris...

Gold prices advanced further in Asian trade Friday after equity markets fall down on global economic uncertainty. Gold for immediate delivery was seen trading at $1244.45 an ounce at 11.30 a.m Singapore time while August gold was at $1245.92 an ounce on Comex division of the NY Mercantile Exchange.

The gold hysteria has hit Australia hard as investors dump paper money and turn to precious metals as a source of diversification of their wealth, according toGeorge Vo, Precious Metals Sales Manager of Gold De Royale, Australia's premier retailer for Swiss precious metals. With gold prices hitting an all time high at US$1,266.50 an ounce, investors bought Swiss precious metals as a hedge against financial turbulence caused by Europe's debt crisis.

The former Soviet Central Asian republics are at a precarious crossroad today between accomplishing monumental progress, like Kazakhstan, and flirting with disaster and the prospects of civil war, like Kyrgyzstan.

Gold prices are soaring to new heights but who is buying. It seems nobody is interested in gold at least in India. If you take note of India's import data for April and May months, the quantity of gold imported to the country has come down heavily.

Oil prices fell for a third day to beneath $76 a barrel on Thursday after a jump in U.S. crude oil inventories outweighed the Federal Reserve's decision to keep interest rates near zero. A dip in European shares on Thursday also dampened sentiment and reinforced the correlation between oil and equities. EU

Africa's second largest gold producer, Ghana's gold output rose to 696,172 ounces in the first quarter of this year. According to Ghana Chamber of Mines, country's gold production hit 696,172 ounces during the first quarter of 2010, up 3 percent over the same quarter a year ago.

Gold was flat to slightly firmer on Thursday as the Federal Reserve's vow to keep interest rates low and uncertainty over the global economy underpinned investor appetite. On Wednesday, weak U.S. housing data helped send gold to a low below $1,230 an ounce, but its recovery since then on bargain-hunting eased bearish views that gold cannot be an exception when a sell-off hits other commodities and stocks.

Oil prices fell for a third day to around $76 a barrel on Thursday after a jump in U.S. crude oil inventories outweighed the Federal Reserve's decision to keep interest rates near zero.

The BP crisis in the Gulf of Mexico has rightfully been analysed (mostly) from the ecological perspective. People's lives and livelihoods are in grave danger. But that focus has equally masked something very serious from a financial perspective, in my opinion, that could lead to an acceleration of the crisis brought about by the Lehman implosion.

Global oil prices rose marginally in Asian trade Thursday mainly after positive trends in local equity markets. Light sweet crude for August delivery was seen trading at $76.48 a barrel at 11.30 a.m Singapore time while Brent crude was at $ 76.41 a barrel in London.

Gold steadied in Asian trade Thursday after a fall of 0.5 percent overnight on a rising dollar. Gold for immediate delivery was seen trading at $1235.25 an ounce at 11.30 a.m Singapore time while US gold futures for August delivery was at $1236.01 an ounce.

A flexible Chinese Yuan (CNY) may create romm for other emerging market currencies to appreciate and thereby push up consumption of commodities in those economies in the coming months. This will prove positive for energy, gold and metals, according to an analysis by Bank of America-Merrill Lynch (BofAML).

Gold's high prices have come as a godsend for diamond jewellery sector as more and more people are now opting for the sparklers.

Oil extended losses below $78 a barrel on Wednesday after U.S. industry data showed a surprise jump in crude and gasoline stocks, and investors looked to government figures later in the day for confirmation.

China recently agreed to make yuan flexible by ending its peg to the dollar. This move was welcomed by several nations, including India.

Slowly, gold import is picking up momentum in India with the Diamond India (DIL), formed by 58 diamond manufacturers for the direct import of rough diamonds, announcing that it will import around 100 kg of gold in July.

In an attempt to better regulate its gold market, South Korea said Wednesday it will open a gold exchange inside its main bourse in January 2012.

Is Zimbabwe's negative image of producing blood diamonds a result of falsified documents? It is now alleged that a person heading a non-governmental organisation had created false documents regarding human rights violations in Chiadzwa diamond fields and gave it to Kimbler Process. Zimbabwe's high court has refused bail to a man accused of jeopardizing the country's ability to trade diamonds on the international market, prosecutors say.

Nepal's central bank, Nepal Rastra Bank (NRB) has increased the quota of gold import by an additional 10 kg a day to 20 kilogram per day till July 7.

Gold prices continued to trade higher in Asian trade Wednesday mainly on weak equity markets while ETF holdings rose to another record. Gold for immediate delivery was seen trading at $1240.24 an ounce at 11.30 a.m Singapore time while U.S. gold futures for August delivery was at $1240.18 an ounce.

Oil prices fell for a second day on Wednesday, as much as 1 percent, on unexpected gains in U.S. crude and gasoline stocks in an industry report, while weak U.S. home sales drove equities lower and dampened risk appetite.

Gold edged up on Wednesday, tracking an increase in ETF holdings as investors sought a safe haven from sliding stock markets and worries about the pace of global economic recovery.

Crude oil futures edged lower in choppy trading on Tuesday, seesawing with Wall Street in a cautious market ahead of weekly oil inventory reports and with the U.S. July crude contract approaching expiration at the end of the session.

Crude oil fell below $78 per barrel on Tuesday as shares retreated and on expectations that a slow rise in China's currency would have a more limited impact on global demand than initially anticipated.

India gold demand has dipped by over 50% month-on-month for the month of May 2010 as the prices surged to the historic peak levels on the back of uncertainties lingering on the Eurozone economies.