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National Spot Exchange Limited (NSEL) is a commodity exchange in India which conducts spot trading in various agricultural and non agricultural commodities. The exchange is a joint venture of Financial Technologies India Ltd.(FTIL) and National Agricultural Co-operative Marketing Federation of India Ltd (NAFED). NSEL is looking to tap the capital market and the long-term objective is to reduce FTIL’s stake to about 26 per centwhich is 99% at present. The company will initially start by shedding 5-10 per cent stake. Finally the objective is to go for an IPO after two years.

According to Jeffrey Nichols, Senior Economic Advisor to Rosland Capital and Managing Director of American Precious Metals Advisors

Gold hit a new (nominal) record high on the London fix in dollars on 11 May at $1,222.50/oz. This surpassed December’s peak and means gold has risen in price by 8% since 22 April this year, a period in which other metals have performed poorly; platinum for example was down 2%, palladium down 7% and even certain base metals were down 10%.

The Indian government has said that the country has become the 10th largest holder of gold in the world after it purchased 200 tonnes of the precious metal from the International Monetary Fund (IMF) last year.

The International Monetary (IMF) has sold around 18.5 tonnes of gold in March this year without drawing much attention from any quarters.

By Geena Paul
LONDON : Remember the impact of Reserve Bank of India’s decision to buy 200 tonnes of gold from International Monetary Fund (IMF) in November 2009 had on the price of yellow metal? That time gold prices soared to new heights because the world feared that India is shifting its foreign reserves to gold expecting the dollar to crash.

By David Lew
The global gold market turned into an upbeat mood two months back when the International Monetary Fund (IMF) announced that it would be selling an additional 191 tonnes of gold in the open market.

Indian forex markets will remain closed on April 1 and April 2 on account of financial year ending and Good Friday.

By Dan Norcini
Gold is performing admirably given the extreme volatility in the currency markets. After yesterday’s drop lower in the Euro coming on the heels of Trichet’s comments about IMF involvement with Greece, gold held very steady as more and more it seems as if it has taken on a solid role as an alternative currency in the minds of Europeans. That cannot but help to steady it and provide a solid base of support beneath the market. As the Euro staged a sharp rally this morning, gold then shot higher recapturing the $1,100 level as startled bears ran for cover.

Gold
Gold went from as low as $1,119/oz up to $1,128/oz in US trading before closing with a gain of 0.32%. It has range traded from $1,120/oz to $1,125/oz in Asian and European trading this morning. Gold is currently trading at $1,123/oz and in Euro and GBP terms, at €827/oz and £741/oz respectively.

LONDON : Illustrious commodities investor Jim Rogers says the US dollar is a much flawed currency and therefore the world needs the emergence of some alternative currency something like the Euro.

China made headlines last week after Yi Gang, director of China’s State Administration of Foreign Exchange, said that using gold to diversify its foreign-exchange reserves is limited because of the metal’s poor returns over the past 30 years. The comments suggested that China’s gold purchases overall will be limited for now.

By Jon Nadler
Spot gold bullion prices rose overnight, having once again tested the (and held at) the just-under $1100 level yesterday – a fresh, three-week low. Dollar weakness ahead of the release of US economic data this morning kept bullion specs interested, however an early push towards the $1120 resistance area was truncated and the metal retreated towards $1110, and then even lower, turning negative within the first hour of trading, as the US dollar pared losses incurred immediately following the release of US retail sales figures for February.

Gold continued its slide this week in India with the metal losing again on Friday. This is the longest losing streak in four years in the New Delhi bullion market.

A leading mutual fund in India has announced the launch of a unique gold savings fund which the company says will boost gold investment in exchanged traded funds (ETFs) the country.

By Dan Norcini
Gold put in an impressive performance today from where I sit battling back from a barrage of selling linked to the ridiculous story circulating around the market today that China was not interested in buying gold. That initially emboldened the raiders at the Comex and sent the lemmings packing and heading for the hills before saner minds prevailed who began buying into the weakness. The result was a strong bounce from important technical support near the $1,110 level

At a time when jewellery retailers and gold buyers are crying foul over the increase in import duty on gold and silver, there is a surprise element for jewellery makers which will make them happy.

By Jeffrey Nichols
Gold’s recent price performance, strong physical demand for the metal in important world markets, worries about U.S. public debt, continuing aggressive monetary stimulus by the U.S. Federal Reserve, and news of substantial long positions by some prominent institutional investors and sovereign wealth funds together suggest that gold will soon resume its long-term upward march.

Wait and watch, that is the game bullion market is playing now. With India’s new tax on gold imports hitting the demand in global market, investors and importers are now waiting and observing the movements for a clear hint.

BEIJING : Worried over the rising inflation, China is tightening liquidity, but it seems there will be no effect on gold sales due to this.

NEW DELHI : Will India do it again? That is the question being asked by investors and bullion market analysts now.

SINGAPORE: The International Monetary Fund on Wednesday said it would shortly begin selling 191.3 tonnes of gold in the open market under a
programme approved last year to boost its resources for lending.

WASHINGTON : Once again, gold sale by the International Monetary Fund (IMF) is going to make waves in the bullion markets around the world. After selling 212 tonnes of gold to India, Sri Lanka and Mauritius in the last three months, IMF says it is all set to sell the remaining yellow metal soon.

MUMBAI : Despite an annual decline in demand by 19% compared to 2008, India retained its numero uno position in gold consumption in 2009 with demand totalling 405.8 tonnes, according to an assessment by World Gold Council. The nation consumer 501.6 tonnes in 2008 and witnessed a weak first quarter sales in 2009.

By Sol Palha
India
We are just going to briefly touch this topic today and if time permits spend more time on it in future updates. The Indian Government announced that the economy expanded roughly at 7.2% for this fiscal year; like china this is an astounding growth rate and on the surface would justify the bullishness surrounding its stock market. However, as always there is more to the story than meets the eye.

By David Lew
It is three months since India’s central bank—the Reserve Bank of India (RBI)—bought 200 tonnes of gold from the International Monetary Fund (IMF) for an astronomical price of $1,045 per ounce. India’s sudden decision to jump into the fray and purchase of the yellow metal from IMF led to a historic surge in gold price.

By Jon Nadler
Overnight gains continued in gold, courtesy of manifest risk appetite and additional consolidation in the US dollar. Highs near $1125 were seen, albeit the advance softened by the time the NY session got underway this morning. Spec funds are back in the market, emboldened by the successful breach of the $1117 mark yesterday, and are trying once again to wrest the metal away from the bears who almost got going in earnest near the $1070 area.