The Economic Times reported that gold buyers in India crossed their collective arms once again starting on Friday afternoon as domestic prices gained following a government imposed rise in precious metals import duties. Dealers surveyed by the ET were quoted as saying: "There were a few deals in the morning, but after the duty hike announcement, nothing has happened so far... We survive on thin margins and even a small hike could impact business," and “We have plenty of orders below $1,100 an ounce." – in so many words, “no dice on locals buying at this time.”
New York spot metals trading opened its first session of March with mixed results in terms of price. Gold fell by $2.20 per ounce basis spot bid, opening at $1115.70 as against an 81.05 print on the US dollar index (up a very robust 0.73). Silver CLIMBED 2¢ to start at $16.51 per ounce, while platinum gained $6 to open at $1547 and palladium rose $3 to the $434 level.
Rhodium showed no change at $2430 an ounce. Gold remains under pressure to perform and overtake resistance at $1125-$1131.50 lest the sellers once again prevail and possibly take the metal down to the $1090s. The dollar will call the shots once again this week, but gold may shine in euro and sterling terms this week, given the goings-on in the Old World.
Jon Nadler
Senior Analyst for Kitco Metals Inc.
North America US & Canada
Websites: www.kitco.com and www.kitco.cn
