Trading strategy for Gold and Silver Futures, Commodity Market Outlook
Gold futures ended higher Wednesday on an oil rally and the dollar's weakness, ahead of the monetary policy statement to be released by the Federal Reserve.
Silver futures outperformed gold and rose broadly in line with industrial metals. It gained 1.22 percent and 1.36 percent on MCX and NCDEX respectively.
Russia plans to increase its gold output by developing several large deposits in Siberia and the country's fareast. Russia was the world's fifth-largest gold producer in 2008, with a 7.8 percent share of world production. Its reserves are second only to South Africa's.
The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said holdings stood at 1,065.49 tonnes as of Aug. 12, unchanged from the previous business day.
Sacks' Investec Global Gold Fund, which was founded in 1990, has 126.3 million pounds ($208 million) in assets under management, and invests primarily in gold mining equities.
On the supply side, the world's largest gold producer, Barrick Gold, said it produced 1.87 million ounces of gold in the second quarter and is on track to meet its 2009 output target of 7.2-7.6 million ounces.
U. S. Fed in its policy review meeting on Wednesday kept the inter-banking interest rate unchanged in the range of 0-0.25 percent.
Precious metals: We expect gold to remain firm during the day after yesterday’s rise. Silver may witness profit booking in line with industrial metals as it has been following the movement in industrial metals lately. We recommend selling Silver on rise. However, the fall in dollar following the improvement in Euro zone GDP number may cap downside in Silver.
