Gold rose very sharply in the Asian and European trades on soaring energy prices yesterday. However, as compared to earlier gains it was pulled out of the top in the New York session due to some late strength in the US dollar. Spot gold in London closed at $756.75, down $2.1 an ounce. Due to gain in the US dollar gold had an extraordinary outing on 15 September 2007. As a result NAV's of Gold Exchange Traded Fund on 16 October 2007 showed rise with slight deceleration as compared to 15 October 2007. 

UTI Gold ETF on 16 October 2007 was Rs.977.67, which showed rise of 0.77% over NAV prevailing on 15 October 2007. NAV of Gold ETF-G of Kotak Mahindra on 16 October 2007 increased 0.77% to Rs. 978.95 over NAV on 15 October 2007. Gold BeES of Benchmark Mutual Fund followed it with its NAV of Rs. 976.22 gaining 0.77% over 15 October 2007. 

Outlook

Despite an initial slip on the back of record capital outflows, the US dollar gained noticeably under the combined influence of soft company earning figures and record oil prices stoked by increasing regional concerns in the Middle East, which made investors turn back to the greenback as a safe haven asset.

We are likely to see the US dollar hold onto its recent gains ahead of the US CPI figure while crude oil is also expected to ease ahead of the weekly inventories data from the US department of energy today. This should keep the Gold prices under check and a pullback may be seen in the local gold futures as well as ETFs today

Powered byCapital Market - Live News