Gold and silver daily review October 2010

 Gold and silver daily review  05 October 2010 
MARKET ROUNDUP

Precious metals prices ended lower as the market took a breather on a dollar rise and promising U.S. existing home sales data.


IN FOCUS

- The world's largest gold-backed exchangetraded fund, SPDR Gold Trust said its holdings fell to 1,301.913 tonnes by Oct 4 from 1,302.345 tonnes on Oct 1.

- The world's largest silver-backed exchange-traded fund, the iShares Silver Trust, said its holdings stood at 9782.88 down by 3.49 tonnes from the previous business day.

- Central banks in Russia, China and the Philippines are expected to continue to increase gold holdings to balance their reserves, a senior official at the World Gold Council told Reuters on Monday.

- The world's wealthiest people have responded to economic worries by buying gold by the bar -- and sometimes by the tonne -- and by moving assets out of the financial system, bankers catering to the very rich said on Monday.

- Gammon Gold said on Monday the Mexican Federal Labor Board had declared a strike at its El Cubo gold mine illegal but the union says it is appealing the decision and workers still occupy the site.


FUNDAMENTAL OUTLOOK

Precious metals, have moved up lately mainly on account of weakness in dollar and reports that Switzerland's stable banks will need to increase their capital requirements to 19% from 10.5% refueling concerns about financial risk in Euozone. We feel buying at dips should be the good strategy in case of gold on other hand some weakness was witnessed in industrial metals so profit taking in silver is very likely during the day.