Silver dips over 9per cent

Karachi, May 21, 2013 (PPI-OT): And the metal drops continue. Silver dipped over 9% within minutes. This can be viewed as a positive elasticity factor with other precious metals like gold. Recent price trends reveal that silver has had strong correlation with gold prices. Silver has been under the spell of low industrial demand along with quantitative easing measures by the Fed. Quantitative easing measures could send a downward signal for gold prices. Market participants await Ben Bernanke’s speech addressing concerns and performance of the economy.

Malaysian palm oil futures on Monday edged off their highest in more than a month, as data showing a drop in exports erased earlier gains on a higher soy market. US soybeans climbed to their highest since March 12 on a firm cash market, lending early support to palm oil, a close substitute to soybean oil.

An ever strong dollar against the rupee seems uncontrollable. Measures to tackle this issue may provide tremendous confidence to investors. Perhaps this may be one of the key performance indicators for the new government.

Karachi Stock Exchange (KSE) Monday witnessed historic high on first day of new week and the benchamark-100 index gained 277.11 points. It breached psychological barrier of 20,800 and closed at 20,814.14 against 20,537.03 Friday. The local bourse opened in green zone and closed on a positive note. The index touched highest level of 20,834.97 points during the intra-day trading.

Settlement Prices at PMEX were as follows with volumes at Rs. 4.55 billion with 17,507 lots traded:

GOLD: USD 1,380.80 /t oz
SILVER: USD 22.565 /t oz
CRUDE OIL: USD 96.50 / barrel
IRRI-6: Rs. 3,576 /100 kg
Palmolein: Rs. 4,382 / Mound
Sugar: Rs. 45.72/kg
Wheat: Rs. 3,175/100 kg
ICotton: US cents/pound 85.33

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