Iron ore price flirts with key $100/T level on firm demand, China stimulus hopes
Analysts say near-term demand for iron ore remain strong, supporting prices.
Indian traders on Saturday sent gold prices higher by Rs110 to Rs22,780 per ten grams amid the Indian wedding season and firming overseas trends. Silver snapped its three-day losing streak, gaining Rs450 to trade at Rs54,450 per kg. On global markets on Friday Gold for August delivery added $9.70 to $1,542.40 an ounce after US economic data showed job growth slowed to a crawl in May and the unemployment rate ticked higher.
The weak dollar and the spectre of a return to recession in the US on top of a European debt crisis have buoyed the gold price this year and long term fundamentals – buying in India and China – remain strong. India remained the top purchaser of gold jewellery, bars and coins buying 291 tonnes in the first quarter. China could soon overtake India: buyers there added 93 tonnes of bars and coins from January to March, more than double the 2010 level and jewellery demand increased 21% from a year earlier to a record 143 tonnes.
Vietnam Business News reports:
“Gold strengthened in the overseas markets on speculation the US Federal Reserve will keep key rates low to stimulate the American economy which boosted the appeal of the precious metal as an alternative to the slumping dollar and equities.”
“The Word Gold Council estimates that Indian households own more than 18,000 metric tons of gold, the largest holding on the planet. (U.S. official gold reserves total about 8,100 metric tons.)”
