Karachi, March 27, 2013 (PPI-OT): News of recovery in the US economy sends a curb signal for gold. The dollar reached a four-month high versus the euro after data showed yesterday orders for U.S. durable goods climbed more than forecast in February and home prices increased in January the most since June 2006. Does this mean gold buying drops in our environment?
As a protection of wealth, gold still holds a strong position. With government borrowing reaching a RS.100 billion over the year, there is a strong indication that circular debt issues may cause a further debacle for the rupee.
The political situation has caused a hazy outlook, with the stock market showing a volume slide. Contracts such as silver mostly gain their value through industrial demand. As a result, their value assessment is easier. As a result, commodities portfolio can provide a reliable outlook in these times.
Investors in Pakistan must assess the volatility trend in the international commodity market as against that of Pakistan. If saving is the objective, the most conservative approach is though fixed income and gold.
Settlement Prices at PMEX were as follows with volumes at Rs. 3.39 billion with 17,212 lots traded:
GOLD: USD 1,592.40 /toz
SILVER: USD 28.197 /toz
CRUDE OIL: USD 95.85 / barrel
IRRI-6: Rs. 3,392 /100 kg
Palmolein: Rs. 4,191 / Mound
Sugar: Rs. 45.48/kg
Wheat: Rs. 2,866/100 kg
For more information, contact:
Asst. Manager, Risk and Analytics
Pakistan Mercantile Exchange
9th Floor, PRC Towers, 32-A,
Lalazar Drive M.T.Khan Road,
UAN: +92-21-111-623-623, 99210650-61