676
Azadi Rebounds on Bullish Buys
Economy, Business And Markets

Azadi Rebounds on Bullish Buys

The Azadi gold coin rose for the second consecutive day, after it declined on Saturday on speculation that a decline to an eight-month low will spur more purchases.
The bullion coin had capped a 2.9 percent drop in the past two weeks as it followed the bullion’s price in the global arena. Yet the coin’s fall was cushioned by the rise of dollar against the rial, as gold for immediate delivery slid by 3.9 percent in the same period.
The lower demand for the precious metal was due to a strengthening dollar, since data showed that US retail sales rose in August by the most in four months.
Gold’s 14-day relative-strength index, a measure of momentum, held below the level of 30 in the previous two days, signaling to some traders that prices may be poised to rebound, while the money-flow index just hit 20, bolstering the argument.
Gold and the Azadi coin are heading for their first quarterly loss this year as the DXY, a measure of the dollar against a basket of currencies, climbed 4.8 percent since the end of June.
Demand for safe havens has dropped as signs of an improving US economy add to the case for the Federal Reserve, which will have a two-day policy meeting starting tomorrow, to raise interest rates sooner.
Any clues on the timing of the first US rate rise in more than eight years, would hurt gold, which does not bear interest, and boost the dollar.
The Azadi rose by 55,000 rials to 9.3 million rials, showing a 0.59 percent gain by 12:30 in London. Meanwhile, gold’s spot price rose 0.5 percent to $1,235 an ounce by 12:30 GMT. Bullion for December delivery went up 0.3 percent to $1,235 on the Comex in New York.
The small rebound in gold’s international price could be due to safe-haven bids after Asian stocks fell to a five-week low due to a set of weak data out of China, some investors say.
But investor sentiment towards the metal remains weak, as money managers reduced bullishness on derivatives bets in gold for a fourth straight week, according to data from the US Commodity Futures Trading Commission. The number of bullish contracts stood at 71,376, the lowest in three month.
Weak physical demand is another factor that’s pulling the metal down. Asia, the top gold consuming region, is showing less interest in buying gold at current prices as buyers expect further declines. Demand from India and china is still down.
Azadi has fallen from the year’s high of 10.4 million rials in May by 10.5 percent as low demand in domestic and foreign markets drove down the price of the precious metal.
Silver’s spot price went slightly down to $18 an ounce on Monday. It has fallen by 1.4 percent since it reached $21 in July. Now it is at its lowest since June 28, 2013. Platinum edged up by 0.2 percent and stood at $1,374 an ounce, after touching $1,355 on Sept. 12 – its lowest this year.
Palladium went up by nearly one percent, reaching $845 per ounce. The Metal reached its highest in 13 years at $912 in the beginning of the month, amid concerns that supplies from Russia, its largest producer, could be disrupted. Prices retreated as a ceasefire in Ukraine eased investor sentiments and hit an 11-week low of $821 on Friday.

Short URL : http://goo.gl/EVqVyG

You can also read ...

Automotive Giants Hit  by Massive Data Breach
Security researcher UpGuard Cyber Risk disclosed Friday that...
Mindful of the risks inherent in starting a trade war with the US, the EU will probably not be able to provide Tehran with extensive support.
If it wants to keep the nuclear deal alive, the EU will need...
Travel Currency Policy Facing Revision
Confirming rumors of an imminent change in the Central Bank of...
Iranian Parliament Firm on Preventing FATF Blacklisting
Majlis Economic Commission, a major force in Iran's Parliament...
21% Rise in Non-Oil Trade With Afghanistan
Iran traded 1.58 million tons of non-oil commodities worth $...
Command Economy Taking Biggest Toll on Stocks
Bulls at Tehran stock market are exhausted, as bears keep...
Secondary Forex Market Rates to Soar
The supply of currency to the Secondary Forex Market will...
No Reverting to Economic Policies of 1980s
One of the wonders in this day and age, in Iran, is the...

Trending

Googleplus