Saturday, March 24, 2012


Optimism regarding bond swap deal of Greece capped the downside in bullion counter but the events taking place in Greece and the movement of dollar index will continue to guide the movement in near term. A group of 30 banks and funds representing 40.8% of Greece's 206 billion Euros of outstanding debt said that they would take part in the deal, joining other Greek and foreign banks and pension funds which have already pledged to accept the offer. Gold can trade in range of 27500-28400 in MCX while COMEX gold can trade in range of $1610-1750 in near term. White metal silver can trade in range of 57000-61500. Next week US retail sales, US and EU industrial production data will be keenly watched, which gauge the risk sentiment in the market. Meanwhile stronger local currency Rupee will continue to support prices. The gold silver ratio continue to hover around the 50 level as it recently dipped below 48. The Greek government's deadline for the biggest sovereign restructuring in history passed with a majority of investors signaling their readiness to participate in the debt swap. While Greece would prefer a voluntary deal, the government has said it will use so called collective action clauses to force holders of Greek law bonds into the swap, if the private sector involvement falls short and it gets approval from investors to change the bonds' terms.