Revaluation of yuan pushes up gold by 1%

WEEKLY REVIEW/BULLION

The revaluation of the yuan pushed up gold prices by over a per cent during the week-end. Analysts predicted that this trend was expected to create a rise in demand for dollar denominated commodities including gold and silver.

On the New York Mercantile Exchange's Comex, benchmark August delivery gold futures ended the week down 60 cents for the session at $425.10 an ounce. However, it was up $3.80 for the week. The spot London gold fix too closed higher at $425.00 (PM) from $418.35(PM). September silver rose to close at $7.05 an ounce.

In the local market, during the week ended July 23, gold and silver prices declined. Spot gold (99.50 purity) in Mumbai closed at Rs 6,050.00 per 10 gram from Rs 5,995.00 last week. Spot gold (99.90 purity) closed at Rs 6,085.00 from Rs 6,025.00 the previous week. Spot silver (.999) too gained ground at Rs 10,690.00 from last week's Rs 10,610.00 per kilogram.

Futures trading in gold and silver saw subdued trading with prices dropping across the contracts. On the National Commodity Derivatives Exchange (NCDEX), the August gold contract at Rs 6,200.00 with an open interest of 1kg.

Silver contract in July closed at Rs 10,377.00 from Rs 10,465.00 last week, with open interest of 44,820 gram and a volume of 1,05,720 gram. August contract closed at Rs 10,638.00 from Rs 10,538.00 with an open interest of 1,68,630 gram with a volume of 44,220 gram.

On the Multi Commodity Exchange of India (MCX) the August contract closed at Rs 6,065.00 from Rs 6,013.00 with an open interest of 6,123 kg and a volume of 2,897 kg.

The October contract closed at Rs 6,144.00 compared with Rs 6,106.00 with an open interest of 2,100 kg compared with 649 kg last week. Volume stood at 138 kg.

The 29 July Gold HNI (High Net Worth Individuals) contract closed at Rs 5,903.00 from Friday's 5,857.00, with an open interest of 15 kg. HNI Silver August closed at Rs 10,034.00 from Rs 9,790.00 last week with an open interest of 8,450 kg and 1,300 kg worth of volumes.

The September 5 silver contract fell to close at Rs 10,526.00 from Rs 10,542.00 last week. The open positions stood at 3,96,420 kg and the volume of contract was 7,11,307 kg. The December contract of silver closed at Rs 10,615.00 down from Rs 10,625.00 last week with an open interest of 20,850 kg and a volume of 1,470 kg.

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THE GOLD RUSH

NEW YORK The benchmark August delivery ended the week with a gain of $3.80

LONDON The spot gold of London too closed higher at $425.00 (PM) from $418.35(PM) last week

MUMBAI In Mumbai spot gold (99.50 purity) closed at Rs 6,050.00 per 10 gram from last week's close of Rs 995.00