Friday, April 20, 2007
Gold sales shine on Akshaya Tritiya
CHENNAI: Major cities in the country appear to be reeling under a gold rush in the last two days. Considered an auspicious occasion for investments in gold, Akshaya Tritiya saw a new trend this year with more number of customers making a beeline for platinum or ‘white gold’. Leading jewellers in Chennai are already expanding the customer reach by introducing light-weight items, even as the occasion’s popularity is making inroads in neighbouring states and places like Ludhiana. World Gold Council vice-president K Shivram said this time, the gold sales are expected to see a 15-20% surge over last year’s figure of 35 tonnes. “The interior markets have been tapped through good communication. The celebration has even touched places like Kerala, Karnataka, Andhra Pradesh, Chandigarh, Punjab, West Bengal and Madhya Pradesh,” he told ET here on Friday. Apart from the 1% value-added tax advantage that Tamil Nadu has over Kerala (4%), the retailers’ feedback reflect that there has been a pronounced increase in the credit card use for purchase during Akshaya Tritiya compared to last year, he added. Delhi-based gold souk chain Aerens Gold Souk director G S Pillai said: “The festival largely, popular in Tamil Nadu, due to historic reasons, is now fast-spreading to other parts of south since three to four years. It is another occasion to sell jewellery. A couple of outlets in Ludhiana was crowded. Even in places like Kolkata and Delhi there has been a surge in sales of gold jewellery during the Akshaya Tritiya period.” In Mumbai, the response has been terrific and shops have closed well past midnight, Mr Shivram said adding that outlets in Middle East too have seen a similar trend, with timely communication targeting the Indian community. “Pre-booking offers have been more visible in the market. But the trade has been managing the resources very well. Better inventory management and segregation of coins and other items have also helped. It is also the time for new collection launches when jewellers offer a huge range of designs,” he said.
Gold, Silver Rebound in Asia as Dollar's Fall Boosts Demand
April 20 (Bloomberg) -- Gold and silver rebounded in Asia as the dollar headed for its fourth consecutive weekly decline against the euro, boosting demand for the precious metal as an alternative investment.
Gold generally moves counter to the dollar, which traded within a cent of its record low versus the euro on speculation slowing U.S. growth will cut the currency's appeal. Gold yesterday had its biggest one day fall since March 2.
``Gold seems to benefiting from the weakness in the U.S. dollar and it has been pushed around by currency movements in recent times,'' said David Moore, commodities strategist at Commonwealth Bank of Australia in Sydney. ``Fundamentally, there is evidence that investors are long gold and that does mean it can be vulnerable to occasional pull-backs.''
Gold for immediate delivery rose as much as $2.85, or 0.4 percent, to $685.80 an ounce and traded at $684.95 at 12:09 p.m. Mumbai time. Silver for immediate delivery gained as much as 11 cents, or 0.8 percent, to $13.79 an ounce and traded at $13.77 at 11:46 a.m. in Mumbai.
``We will probably see some consolidation at current levels before gold starts moving northwards again,'' said Chirag Sheth, analyst at STCI Commodities Ltd. in Mumbai. Gold prices are likely to rise to $700 an ounce in the first week of May, Sheth said.
In Japan, gold for delivery in February 2008 gained 15 yen, or 0.6 percent, to 2,638 yen a gram ($690 an ounce) at 3:18 p.m. local time on the Tokyo Commodity Exchange.
Gold generally moves counter to the dollar, which traded within a cent of its record low versus the euro on speculation slowing U.S. growth will cut the currency's appeal. Gold yesterday had its biggest one day fall since March 2.
``Gold seems to benefiting from the weakness in the U.S. dollar and it has been pushed around by currency movements in recent times,'' said David Moore, commodities strategist at Commonwealth Bank of Australia in Sydney. ``Fundamentally, there is evidence that investors are long gold and that does mean it can be vulnerable to occasional pull-backs.''
Gold for immediate delivery rose as much as $2.85, or 0.4 percent, to $685.80 an ounce and traded at $684.95 at 12:09 p.m. Mumbai time. Silver for immediate delivery gained as much as 11 cents, or 0.8 percent, to $13.79 an ounce and traded at $13.77 at 11:46 a.m. in Mumbai.
``We will probably see some consolidation at current levels before gold starts moving northwards again,'' said Chirag Sheth, analyst at STCI Commodities Ltd. in Mumbai. Gold prices are likely to rise to $700 an ounce in the first week of May, Sheth said.
In Japan, gold for delivery in February 2008 gained 15 yen, or 0.6 percent, to 2,638 yen a gram ($690 an ounce) at 3:18 p.m. local time on the Tokyo Commodity Exchange.
Monday, April 16, 2007
Shares scale six-year highs in Europe
London, New York: European shares rose to their highest close since mid-December 2000 yesterday, driven by a surge in takeover target ABN Amro and by US March consumer spending data that outstripped forecasts.
The pan-European FTSEurofirst 300 index rose 1.11 per cent to an unofficial close of 1,570.75 points, its strongest close since December 13, 2000.
In other European markets, London's FTSE 100 index gained 0.7 per cent to secure its strongest close since September 14, 2000, while Frankfurt's DAX rose to a new six-and-a-half-year closing high, up 1.7 per cent, and Paris' CAC 40 added 1.3 per cent.
US stocks also rose yesterday, fuelling a 1 per cent gain in both the Nasdaq and the S&P 500 indexes, as Citigroup's strong results and a $25 billion buyout of Sallie Mae boosted sentiment.
The rally helped the major indexes seal their recovery from a late February sell-off.
The pan-European FTSEurofirst 300 index rose 1.11 per cent to an unofficial close of 1,570.75 points, its strongest close since December 13, 2000.
In other European markets, London's FTSE 100 index gained 0.7 per cent to secure its strongest close since September 14, 2000, while Frankfurt's DAX rose to a new six-and-a-half-year closing high, up 1.7 per cent, and Paris' CAC 40 added 1.3 per cent.
US stocks also rose yesterday, fuelling a 1 per cent gain in both the Nasdaq and the S&P 500 indexes, as Citigroup's strong results and a $25 billion buyout of Sallie Mae boosted sentiment.
The rally helped the major indexes seal their recovery from a late February sell-off.
Dollar Trades Near Record Low Vs. Euro
NEW YORK (AP) -- The dollar hovered near a record low Monday against the euro after the 13-nation currency climbed to within 1 cent of its all-time high, while the pound backed down from a 14-year record.
Currency traders now turn their eyes in the coming days to economic data that could further the pound's rally. Key inflation figures from the U.S. and Britain due out Tuesday will be followed Wednesday by the minutes from the Bank of England's last meeting on interest rates.
The data could increase the risk of a British rate hike while worries about sluggish economic growth in the U.S. persist.
Higher interest rates, used to combat inflation, can bolster a currency by making certain types of investments more attractive.
Movement against the dollar could drive up the price of exports and tighten the pinch for travelers to Europe just as the tourist season approaches.
Supported by crackling economic growth, falling jobless figures and interest rates much lower than those in Britain and the United States, the euro bought $1.3549 in late New York trading after climbing to $1.3576 -- its highest point since January 2005 and near its December 2004 record of $1.3667.
It traded at $1.3539 late Friday.
Currency traders now turn their eyes in the coming days to economic data that could further the pound's rally. Key inflation figures from the U.S. and Britain due out Tuesday will be followed Wednesday by the minutes from the Bank of England's last meeting on interest rates.
The data could increase the risk of a British rate hike while worries about sluggish economic growth in the U.S. persist.
Higher interest rates, used to combat inflation, can bolster a currency by making certain types of investments more attractive.
Movement against the dollar could drive up the price of exports and tighten the pinch for travelers to Europe just as the tourist season approaches.
Supported by crackling economic growth, falling jobless figures and interest rates much lower than those in Britain and the United States, the euro bought $1.3549 in late New York trading after climbing to $1.3576 -- its highest point since January 2005 and near its December 2004 record of $1.3667.
It traded at $1.3539 late Friday.
Restructuring Cuts Citi's 1Q Profit
NEW YORK (AP) -- Despite strong growth in revenue, profit at Citigroup Inc. fell 11 percent in the first quarter as the nation's largest financial institution took a charge to cover a massive restructuring aimed at improving earnings.
Still, it beat Wall Street expectations, sending its shares up strongly on the New York Stock Exchange.
Meanwhile, the nation's fourth largest bank, Wachovia Corp., reported that its first-quarter profit rose 33 percent on higher lending income and the acquisition of Golden West Financial Corp.
The reports released Monday were the first in a week packed with bank and brokerage earnings results that were expected to set the tone for the year. Profits were anticipated to be harder to come by as rising interest rates make it more difficult for some of the banks' corporate and consumer customers to pay back loans, including mortgages.
While some lenders who provide mortgages to people with poor credit have been failing, there are no signs of a significant spillover to money center banks. Even the big banks are bracing for growing credit problems, however.
Still, it beat Wall Street expectations, sending its shares up strongly on the New York Stock Exchange.
Meanwhile, the nation's fourth largest bank, Wachovia Corp., reported that its first-quarter profit rose 33 percent on higher lending income and the acquisition of Golden West Financial Corp.
The reports released Monday were the first in a week packed with bank and brokerage earnings results that were expected to set the tone for the year. Profits were anticipated to be harder to come by as rising interest rates make it more difficult for some of the banks' corporate and consumer customers to pay back loans, including mortgages.
While some lenders who provide mortgages to people with poor credit have been failing, there are no signs of a significant spillover to money center banks. Even the big banks are bracing for growing credit problems, however.
Gas shoots up 7.4 cents, highest since August
WASHINGTON (Reuters) -- Soaring U.S. retail gasoline prices show no signs of easing, jumping another 7.4 cents over the last week to an average $2.88 a gallon, the government said Monday.
The national price for regular unleaded gasoline has increased 58 cents in the last two months to the highest level since last August and is up 9.3 cents from a year ago, according to the federal Energy Information Administration's weekly survey of service stations.
Pump prices are increasing because of strong gasoline demand, oil refinery outages and low gasoline imports, which are tightening U.S. motor fuel supplies.
Gasoline demand during the first week the month hit an April record of 9.5 million barrels a day. During the same period, gasoline inventories fell 5.5 million barrels.
The national price for regular unleaded gasoline has increased 58 cents in the last two months to the highest level since last August and is up 9.3 cents from a year ago, according to the federal Energy Information Administration's weekly survey of service stations.
Pump prices are increasing because of strong gasoline demand, oil refinery outages and low gasoline imports, which are tightening U.S. motor fuel supplies.
Gasoline demand during the first week the month hit an April record of 9.5 million barrels a day. During the same period, gasoline inventories fell 5.5 million barrels.
Subscribe to:
Posts (Atom)
