Gold price hits five-months high

In the wake of sovereign debt crisis in Europe and tensions in Korean peninsula,gold price rising.
Spot gold gained 0.8% to $1,377.10 a troy ounce  even as dollar rallied hard. Denominated in Euros,gold price jumped 2.7% to Euro 1,030.03 an ounce within the reach of all the time high of Euro1,050 touched in June. Gold coins and bars registered strong demand in europe leading to around 30% sales rise from the rate in November. An analyst at HSBC New York suggested that Eurozone debt crisis abating could not be visualised.
In other markets, agricultural commodities and metal enjoyed  a small bounce. ICE march row sugar rose 1.1% to 27.63cents a pound.Copper in 3 months was 0.9% hogher at $8,224 a tonne.Losses in cotton snowballed as traders showed meagre interest in taking delivery next month.ICE DecemberCotton fell 10.90 cents to $1.11 per pound accelerating a reversal from its exchange record above $1.50 on Nove-9.Cotton has come under pressure as china has taken steps to curb inflationary pressures.China's two cotton textile mils have lowered procurement prices putting pressues on prices.

Dollar versus gold and vice versa

Sterling hits the day's high against the dollar and the euro on octo.26 Tuesday after strong economic growth data and a vote of confidence in the Govt's management of economy.From the rating agency S&P the UK economy grow 0.8% in July-Sept.2010. It dampened the speculation that the Bank of England may soon
implement quantitative easing.
Euro- dipped 0.1% to $1.3945 after fully close above $1,400 on Monday (Octo.25).The euro has support
at around 1.3860 its low last Friday and 21st day moving average $1.3866.Macro funds had trimmed some
of their short dollar position as they waited to see how the G-20 currency debate shaped up.
Indian rupee- The Indian rupee eased on 26 Octo. tailing losses in the other Asian currencies and choppy
domestic share market that failed to provide direction.Coal India's $3,5billion Ipo power to price the issue
at the top of its range and building momentum for other state offers. The world's largest coal miner
would begin to refund excessive subscription for the IPO which had an instituional orders book of about $27
billion powered by foreign funds by late October or November and traders expect the rupee to weaken at
that time.

Gold edges lower as dollar stands firm

Gold edged lower in Europe two days back as the dollar firmed a touch. But held near $1,340 an ounce as investers waited for US data on monetary easing in the US. The Federal reserve meeting could have signifi-
cant impact on dollar.The Federal reserve to discuss whether to extend its quantitative easing policy to accelerate growth.
 Spot gold was bid at $1,335.17 an \ounce against $1,338.80 late on Monday.US gold futures for December delivery eased $3.30 an ounce to $1,335.50. In early days this month gold price hit $1,387.10
retreated as investors worried that they had too heavy priced in expected monetary easing from the Fed.
Gold typically falls as dollar rises and vice-versa with strength in the US unit curbing gold's appaeal as an
alternative asset and making dollar priced commodities more expensive for holders of other currencies.
The dollar firmed 0.2% against a basket of currencies on Tuesday as market participants ponders over
the quantitative easing the Fed would opt for. The dollar gained against Yen following remainders from Japanese officials about the possibility to curb Yen strength.The US currency against the euro struck below
$1.40 as market participants pondered over the monetay policy the Fed. would opt for