The central banks continue to buy Gold, a trend which has been quite fervent over last three years. An International Monetary Fund report has revealed yesterday that central banks increased their holding of the precious metal in both July and August, with South Korea raising its gold holdings by nearly 16 tonnes in July. South Korea has doubled its bullion reserves in the past 12 months, while Paraguay made noted increases to is reserves.
Strikes that have seriously disrupted South Africa's mining sector spread Tuesday night, affecting two more mines belonging to the country's biggest gold producer, AngloGold Ashanti Ltd., and a coal mine operated by Coal of Africa Ltd., the companies said. Anglo Gold said it negotiates wages through a bargaining council that includes all gold-mining companies and unions. The gold sector is in the middle of a two-year wage agreement, and Gold Fields said last week it wouldn't entertain a wage increase outside the structures of the bargaining council. This can be a supportive factor the uptrend in the gold prices.
The Eurozone economies worries continue to hurt sentiments in world markets. The German Ifo index, a key gauge of business confidence, dropped for a fifth month in a row in September, data out earlier in the week showed. Europe's common-currency bloc has reinforced its toolkit to tackle the crisis dogging it, but a full fiscal union among its 17 member states can't be expected to happen overnight and the macroeconomic outlook remains bleak, European Commissioner for Economic and Monetary Affairs Olli Rehn said Tuesday.
COMEX Gold December contract is quoting at $1765.7 per ounce, down 0.7 in the after-hours trading session. MCX Gold December is trading at Rs31475, up Rs77 per 10 grams and may test resistance at Rs31500-31620 and supports near Rs31400-31300 level. Silver December is trading at Rs62463, up Rs151 per 1 kg and is likely to test resistance at Rs62600 and supports at Rs62150 level.
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