Hedge funds seem to have redeveloped interest in gold after United States statistics showed less economic expansion than estimated

Islamabad, June 03, 2013 (PPI-OT): Hedge funds seem to have redeveloped their interest in gold after US statistics showed less economic expansion than estimated. The Federal Reserve might maintain its stimulus stance. The U.S. economy grew at a 2.4 percent annualized rate in the first quarter, the Commerce Department said May 30, cutting its previous estimate of 2.5 percent. Fed Chairman Ben S. Bernanke said May 22 that ending the central bank’s stimulus program prematurely could endanger the recovery.

Supply seems to outpace demand for crude in China. Brent was little changed after dropping as much as 0.7 percent to $99.66 a barrel. Chinese manufacturing indexes showed small businesses struggling, sapping momentum in the economy of the world’s second-biggest consumer of oil. The Organization of Petroleum Exporting Countries kept its output ceiling of 30 million barrels a day at a meeting in Vienna on May 31. JPMorgan Chase and Co. reduced its Brent price forecast.

Pakistani rupee valuation provides a pivot for most investment decisions. Gold and other commodities may seem to have lost value over the past few months with factors behind these price being severe. However, commodities have shown less sensitivity to such extremes. This may not be the case for the rupee, where national economic uncertainty leads to the valuation to have high sensitivity. Thus, commodities still hold value retention for Pakistan’s investors.

Settlement Prices at PMEX were as follows with volumes at Rs. 4.17 billion with 18,271 lots traded:

GOLD: USD 1,393.60 /t oz
SILVER: USD 22.375 /t oz
CRUDE OIL: USD 92.38 / barrel
IRRI-6: Rs. 3,639 /100 kg
Palmolein: Rs. 4,367 / Mound
Sugar: Rs. 45.57/kg
Wheat: Rs. 3,214/100 kg
ICotton: US cents/pound 80.67

For more information, contact:
Sarang Abbasi
Asst. Manager, Risk and Analytics
Pakistan Mercantile Exchange
9th Floor, PRC Towers, 32-A,
Lalazar Drive M.T.Khan Road,
Karachi, Pakistan.
Cell: +92-03215148905
Fax: +92-35611263
UAN: +92-21-111-623-623, 99210650-61
Web: www.pmex.com.pk