Gold edges up on Wednesday, supported by demand from China

Karachi, May 08, 2013 (PPI-OT): Gold edged up on Wednesday, supported by demand from China and a tight physical market, but gains were capped by strong equities and a drop in bullion exchange-traded fund holdings to their lowest in four years.

The price may get further support from the ongoing increasing demand from China, which have been hurt by sagging investor confidence in the metal this year. China is the world’s second largest buyer after India, and in both countries the steep fall in international gold prices in April unleashed years of pent up demand for coins, bars and jewellery.

Crude futures dropped for a second day after industry data showed U.S. crude inventories climbed for a second week. WTI for June delivery was at $95.53 a barrel, down 9 cents, in electronic trading on the New York Mercantile Exchange. Where the volume of all contracts traded was 7 percent above the 100-day average.

Malaysian palm oil futures rose to a one-week high, pulling away from near five-month lows plumbed earlier in the week, as investors eyed a potential fall in stocks in the world’s second-largest producer of the edible oil.

Settlement Prices at PMEX were as follows with volumes at Rs. 2.20 billion with 10,601 lots traded:
GOLD: USD 1,452.20 /t oz
SILVER: USD 23.746 /t oz
CRUDE OIL: USD 95.54 / barrel
IRRI-6: Rs. 3,506 /100 kg
Palmolein: Rs. 4,382 / Mound
Sugar: Rs. 45.45/kg
Wheat: Rs. 3,205/100 kg

For more information, contact:
Sarang Abbasi
Asst. Manager, Risk and Analytics
Pakistan Mercantile Exchange
9th Floor, PRC Towers, 32-A,
Lalazar Drive M.T.Khan Road,
Karachi, Pakistan.
Cell: +92-03215148905
Fax: +92-35611263
UAN: +92-21-111-623-623, 99210650-61
Web: www.pmex.com.pk