Financial Daily from THE HINDU group of publications
Monday, Apr 24, 2006
Financial Daily from THE HINDU group of publications Monday, Apr 24, 2006 |
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Agri-Biz & Commodities - Gold & Silver Gold rally may continue in domestic market M.R. Subramani
Chennai , April 23 Gold's rally is expected to continue in the domestic futures and spot market. According to Mr Suresh Nair, Vice-President, Kotak Commodity Services Ltd, gold prices could breach the Rs 10,000-mark for 10 gm. During the weekend, standard gold closed at Rs 9,490 for 10 gm recovering by Rs 270 from Friday's fall.
Factors to watch out for
"The weakening dollar, interest rates in the US, physical supply/demand mismatch, inflation fears and geo-political factors such as developments of Iran's nuclear standoff with the West, the European Central Bank Sales and the IMF gold sales are factors to watch out for gold's movement," he said. Demand at the retail level for gold still remained high and the investor would look at an opportunity to buy at every drop or correction in the prices.
Two options for investors
On options for investors, he said they were two. One, to buy physical gold in a demat form. Commodity exchanges in the country provided an opportunity to buy physical gold in a demat mode. These are available in lots of 100 gm or one kg but investors will have to shell out cash. "For example, 100 gm gold will cost the investor Rs 90,000," he said. The second option would be to trade in futures contract on the commodity exchanges, paying a margin of 7 per cent of the contract value. "The investor still has time to take part in the rally," he said. June contract is seen apt for such investments. During the weekend, June contract closed at Rs 9,668 for 10 gm on NCDEX, while on MCX it was quoted at Rs 9,497.
More Stories on : Commodity Exchanges | Gold & Silver
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