India mulls reviving colonial era gold mines with $2 billion reserves


This will alert our moderators to take action. Copper Copper prices fell for a second week in a row pressured by fears that trade conflict between Washington and Beijing would hit demand in China, the top consumer of industrial metals. Get instant notifications from Economic Times Allow Not now.

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A strong US Dollar and weaker data from China could also continue to weigh on prices. This suggests that a RRR cut may be imminent in the coming weeks, which could be supportive of market sentiment. Technically, at domestic level, MCX Copper June Contract, the month of June is going to be volatile for copper as few weeks back we saw sharp rise towards Rs level and now prices have given up the entire gains and arrived at the support zone of Rs level.

The medium-term trend for this commodity as prices are near to the upward moving channel support, which is intact since October Apart from this it is well above 50 weeks EMA which has provided important support in the past.

Hence one should look for reversal from current levels as this is crucial support zone. Hence any daily close above will indicates trend has reversed on upside.

On downside if get violated then further down move towards will open up. Hence one should avoid shorting as long as this level is protected and look for buying opportunity. During the range bound market it is ideal to buy near support zone and sell near resistance zone. Use of Bollinger Bands provides clear objective view to trade in such market.

Zinc At domestic level, MCX Zinc June Contract, weakness prevailed in entire base metals in which Zinc lost from the high of to level till now. However, the zone of is strong support where intersection of upward moving channel of last 2 years as well as horizontal support line is placed. Exponential moving average of 70 weeks has been providing support since and as of now it has been testing the same average. Hence expect some buying to emerge from current levels.

On upside we can expect recovery towards levels. Internationally, LME Zinc Futures, prices showed strong down move in last 2 weeks and formed bearish candlestick pattern with increase in momentum.

The price action near current levels is going to be crucial as any daily close below level can weaken this base metal further towards The overall trend will remain on downside and sell on rallies approach is favorable. One can use any rally towards as selling opportunity. Internationally, LME Aluminum Futures, the downward phase in this metal has continued along with formation of negative bars. On a weekly basis there is no sign of reversal yet as momentum has been strong on downside.

Prices have been garnering strength since March It has rose from to level till now. Rs 16, is the support and on upside move towards Rs 17, is possible. Readers are advised to consult their financial advisers before taking any position based on these observations. The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.

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So most of the gold caters to local needs," says Prithviraj Kothari, president of the Bombay Bullion Association. The growing local demand for gold in India can be sourced to a variety of factors apart from the fact that gold provides greater liquidity.

Adds Sanjeev Agarwal, CEO, Gitanjali Export Corporation, "Because of this, the traditional preference of Indians for storing gold in the form of jewellery is now balancing out with investors buying gold bars and coins.

The government must ensure that there is a check on the quality of this metal. Refrain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks, name calling or inciting hatred against any community. Help us delete comments that do not follow these guidelines by marking them offensive. Let's work together to keep the conversation civil.

India has only 3 working gold mines. Read Post a comment. Login from existing account Facebook Google Email. Share on Facebook Share on Twitter.