India forex reserves up marginally to $295.6 billion

India's foreign exchange reserves climbed marginally to $295.6 billion at the end of December last year, from $294.4 billion in March 2012.

According to latest Economic Survey 2012-13 presented by country's Finance Minister, P. Chidambaram in the Lok Sabha on Wednesday, on month-on-month basis forex reserves remained in the range of $ 286.0 billion (at end-May 2012) to $ 295.6 billion (at end-December 2012).

At this level, reserves provided about seven months of import cover, the Survey observes.

India’s foreign exchange reserves comprise foreign currency assets (FCA), gold , special drawing rights (SDRs) and reserve tranche position (RTP) in the International Monetary Fund (IMF).

The level of foreign exchange reserves is largely the outcome of the Reserve Bank of India (RBI) intervention in the foreign exchange market to smoothen exchange rate volatility and valuation changes due to movement of the US dollar against other major currencies of the world.

Courtesy : Bullion Street

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Oil rebounds in Asia lifted by data points

                             

                  Oil futures rebounded modestly during Wednesday’s Asian as traders digested some solid U.S. economic data points that went mostly ignored in the oil pits Tuesday. 

On the New York Mercantile Exchange, light, sweet crude futures for April delivery rose 0.26% to USD92.88 per barrel in Asian trading Wednesday. Oil settled down 0.58% at USD92.57 a barrel on Tuesday in the U.S. 

A day after a report showed Chinese oil imports rose in January, two data points showed U.S. demand could be improving as well. In U.S. the Conference Board said its consumer confidence index rose to 69.6 in February from a

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Goldman Sachs cut 2013 Gold forecast to $1,600, 2014 to $1450

                       Leading global investment banking and securities firm Goldman Sachs cut its 2013 gold price forecast to $1,600 an ounce from $1,810 an ounce.

In a statement, Goldman Sachs cut its three-month gold-price forecast to $1,615 an ounce from $1,825, its six-month forecast to $1,600 an ounce from $1,805 and its 12-month forecast to $1,550 an ounce from $1,800.

The bank also cut its 2014 forecast to $1,450 an ounce from $1,750 an ounce. It said gold's recent price drop and an increase in U.S. real interest rates have led it to bring forward its projections for a decline in the metal.

Goldman Sachs said while the latest sell-off is "likely excessive," it has "exposed a quickly waning conviction in holding gold positions, especially ETFs.

If that projection proves accurate, it will mark the first year gold has recorded a lower average price year-on-year since 2001, when its record-breaking 12-year bull run began, the bank said.

Goldman predicted a turn in gold's bull cycle in December, saying a rise in real interest rates on the back of improved growth could offset any further balance sheet expansion from the Federal Reserve.

Courtesy : Bullion Street

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Gold down slightly in Asia after U.S. gains

               Gold futures declined slightly in the early going of Wednesay’s Asian session after posting a strong performance during Tuesday’s U.S. session. 

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery fell 0.17% to USD1,612.80 per troy ounce in Asian trading Wednesday. Bullion settled up 1.76% at USD1,614.50 a troy ounce in U.S. trading Monday in what was one of the best one-day performances for the yellow metal in weeks. 

Gold futures were likely to test support USD1,574.80 a troy ounce, Monday's low, and resistance at USD1,653.75, the high from Feb. 13. 

Traders ignored Goldman Sachs taking the ax to its gold price targets in the U.S. Tuesday as Federal Reserve Chairman heartened gold bugs by saying the Fed’s quantitative easing program has not jolted U.S. inflation to uncomfortable levels. 

On Tuesday, Goldman Sachs lowered its 2013 price forecast for gold to USD1,600 an ounce from USD1,800. The venerable Wall Street cited gold’s

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