Pakistan’s market views a stronger dollar as a move toward forex, but would consider portfolios with bullions and crude oil in proportion
Karachi, March 19, 2013 (PPI-OT): A contrast in global developments: The Eurozone on worries of the Cyprus package, a stronger dollar becoming more prominent and increasing demand from Asian economic giants. With such a latitude of factors, analysis for commodities becomes more complex and at the end of the day one question needs to be answered: where would prices go?
Pakistan’s market views a stronger dollar as a move toward forex, but would consider portfolios with bullions and crude oil in the proportion.
A stronger dollar curbs demand for precious metals. At the same time the demand in supported by the Eurozone developments, as investors opt for a safe haven like gold. According to Bloomberg Gold jumped yesterday after Cypriot President Nicos Anastasiades bowed to demands to raise 5.8 billion euros ($7.5 billion) through a proposed tax on bank deposits. J.P Morgan won a judge’s ruling rejecting a bid to revive claims that it manipulated silver futures and options prices in violation of U.S. antitrust law.
The Indian economy is challenged to increase its credit growth as depositors are going for precious commodities and withdrawing funds in view of the current slowdown in the economy. The credit-to-deposit ratio at lenders led by State Bank of India widened at the end of last month to almost 79 percent, or the highest since the central bank began reporting the data in 1998. Meanwhile, physical savings including gold imports, which slumped to 45 percent of household assets in the 1990s.
Palm oil gained on speculation that stockpiles in Malaysia, the world’s second-largest producer, may decline as exports increase. Settlement Prices at PMEX were as follows with volumes at Rs. 4.71 billion with 18,272 lots traded:
GOLD: USD 1,602.2 /toz
SILVER: USD 28.803 /toz
CRUDE OIL: USD 93.79 / barrel
IRRI-6: Rs. 3,449 /100 kg
Sugar: Rs. 43.90/kg
Palmolein: Rs. 4,189 / Mound
Wheat: Rs. 2,851/100 kg
For more information, contact:
Pakistan Mercantile Exchange
9th Floor, PRC Towers, 32-A,
Lalazar Drive M.T.Khan Road,
UAN: +92-21-111-623-623, 99210650-61