Sharekhan Commodities Buzz dated July 11, 2006

[Sunil]

 

Commodities Buzz [July 11, 2006] Please see the attachment for details Share khan www.sharekhan.com

Summary of Contents   COMMODITIES BUZZ Bullions: Pull-back unsustainable The prospects of Japan hiking its interest rate by a quarter percent and speculation that the ECB will raise interest rates at a faster pace than the Federal Reserve should see the tightening of global liquidity. China may raise interest rates and let the yuan strengthen to cool investment, China Business News said yesterday, citing China Banking Regulatory Commission official Wang Yanyou. Though any strength in the euro might support the prices of bullion, an uptick in the Japanese yen definitely would not be good for bullion. We believe that any pull-back will not be sustainable, as gold has to build a much stronger base before inching higher.

Regards, The Sharekhan Research Team myac...@sharekhan.com