Gold prices drop 9%, biggest one-day fall in 30 years

April 16, 2013
gold
New York, Apr 16: Gold had its biggest one-day drop since 1983 on Monday as a selling frenzy that began last week picked up speed.

The price of gold plunged $140.30 to $1,361.10 an ounce, a decline of 9 percent. The metal has dropped $200 an ounce, or nearly 13 percent, in the last two trading days. It's the lowest price since February 2011.

The sell-off started Friday when the government reported a drop in inflation. Investors often buy gold when they're fearful of rising prices and sell it when they see inflation ebbing.

A proposal last week that Cyprus sell some of its gold reserves to support its banks also spooked investors, leading them to worry that Spain, Italy and other weak European countries might flood the market just as demand for the metal is weakening.

After the sharp drop last week, the rush of selling started to feed on itself Monday as worried traders hurried to get out of the market.

"This is panic, this it isn't organized at all," said Phil Streible, a senior commodities broker at RJ O'Brien Futures.

Worries about slowing growth in China also pushed down industrial metals and the price of oil and other commodities.

Gold is often thought of as a safe-haven investment, a place to park money when investors are fearful of turmoil in other markets, inflation, weak economic growth or depreciation in the value of the U.S. dollar.

It rose sharply in the past decade, from less than $330 ten years ago to a peak of $1,900 an ounce in August 2011 during the market turmoil that followed a downgrade of the U.S. government's credit rating.

Part of the rise in recent years can be attributed to more investors putting money into gold and speculating that the price will continue to rise. Some investors also bought gold as an alternative to holding dollars on the belief that the Federal Reserve's economic stimulus program would weaken the U.S. currency.

George Gero, precious metals strategist at RBC Capital Markets, said the possibility of European central banks selling gold was especially worrisome since there were fewer nations interested in keeping gold reserves these days.

"There aren't many other countries that want to buy," Gero said. "In the past you saw Mexico, Russia, China, Turkey and other central banks buying gold, but right now there seems to be more of a need for dollars."

Gold has been declining from a recent high of $1,792 on Oct. 4 as the outlook for the U.S. economy improved, diminishing the metal's appeal as a safe haven investment. Since then it's down $431, or 24 percent.

Some Federal Reserve officials have also been calling for an early end to the central bank's bond-buying program. If that happens, it would likely cause U.S. interest rates to rise, resulting in a stronger U.S. dollar. That would give traders another reason to sell gold, since they see the metal as an alternative to holding dollars.

Silver fell even more than gold, by 11 percent. Silver lost $2.97 to $23.361 an ounce, its lowest price since October 2010.

Industrial metals also fell after China reported that economic growth slowed unexpectedly in the first three months of the year. The world's second-largest economy grew by 7.7 percent over a year earlier, slowing from the previous quarter, and short of many private-sector forecasts that growth would accelerate slightly to 8 percent.

Copper, which tends to follow the outlook for global growth, dropped 7.7 cents, or 2.3 percent, to $3.27 a pound.

Palladium dropped $42.10, or 5.9 percent, to $667 an ounce and platinum dropped $71.10, or 4.8 percent, to $1,424.80.

Agricultural futures also ended lower. Wheat fell 21 cents to $6.9375 a bushel, corn fell 11.75 cents to $6.4675 a bushel and soybeans fell 18 cents to $13.95 a bushel.

Crude oil dropped to a four-month low, as the slowdown in China's growth added to doubts about the strength of the world economy and global demand for crude.

Benchmark crude fell $2.58, or 2.8 percent, to finish at $88.71 a barrel on the New York Mercantile Exchange.

In other futures trading on the Nymex:

- Wholesale gasoline fell 4 cents to finish at $2.76 a gallon.

- Heating oil dropped 4 cents to end at $2.83 a gallon.

- Natural gas fell 9 cents to finish at $4.14 per 1,000 cubic feet.

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April 25,2024

Bengaluru, Apr 25: Former union minister C M Ibrahim, who was expelled from Janata Dal (Secular) for protesting against party’s alliance with BJP, has stressed on need for a third front not just at the national level, but also in Karnataka. 

Addressing a news conference in Bengaluru on Wednesday, he said he’s planning to form a third front in Karnataka along with Lingayat Seer Dingaleshwar Swami.

Ibrahim said that he will tour the state between April 27 and May 4 and that he would meet Dingaleshwar Swami on April 29. “There is a need for the third front in this country. We will try to establish a third front in association with the seer and we hope we will be successful in those efforts,” he said.

Expressing disappointment with the Congress for not doing enough to gain the full confidence of Muslims, Ibrahim said that Congress is concentrating only on certain communities for votes, and ignoring Muslims. 

“The Congress is not even caring for Muslims and Dalit votes. In some Muslim areas they did not even hold campaigns seeking votes and trying to convince the communities which never vote in their favour. I fear this may lead to low turnout and Congress may lose its vote base,” he opined.

Mentioning about guarantees on which Congress is strongly relying during this election, Ibrahim said, such things won’t work all the time. “Guarantees will not work anymore. Every election you need to give something new to the voters,” he added.

On Prime Minister Narendra Modi’s statement that Congress is trying to appease minorities for votes, Ibrahim requested both Congress and BJP parties not bring Muslims between them. “I request both parties. Leave us alone. Don’t make us sandwiches for your political sake. We are living with peace and hope even the Prime Minister will understand this,” Ibrahim added.

Launching a broadside against Prime Minister Deve Gowda, Ibrahim said, “Deve Gowda has sold his personality itself. Whatever I have told about JD(S) has come true. I pity, a former Prime Minister should not have come to this stage,” he said. 

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April 22,2024

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New Delhi: Even though Prime Minister Narendra Modi's nasty election speech in Rajasthan's Banswara has triggered a nationwide controversy, the Election Commission has so far not taken any action. Meanwhile the Opposition bloc INDIA called the speech an attempt to divert attention from "real issues".

Addressing the people Banswara, on April 21, (Sunday) Modi openly attacked India’s Muslims, suggesting they were “infiltrators” and went on to claim that the opposition if elected would give away “mangalsutras” and “land” of those listening to his speech to them (Muslims). 

He referred to his immediate predecessor, Dr Manmohan Singh who was in office for 10 years as prime minister till 2014, and said, “Earlier, when his government was in power, he had said that Muslims have the first right on the country’s property, which means who will they collect this property and distribute it to – those who have more children, will distribute it to the infiltrators. Will the money of your hard work be given to the infiltrators? Do you approve of this?” 

Modi went on to say, “This Congress manifesto is saying that they will calculate the gold of the mothers and sisters, get information about it and then distribute it. Manmohan Singh’s government had said that Muslims have the first right on property. Brothers and sisters, these urban Naxal thoughts will not let even your mangalsutra escape, they will go this far.”

Narendra Modi and the BJP so far in their campaign trail have invoked religious faith, the Ram temple and Lord Ram multiple times, directly using it to call for people to vote for them. The Election Commission has been completely silent on the messaging via videos, tweets and other exhortations. 

Did Manmohan Singh really say that?

Modi’s claim that Dr Singh said that is not new and was refuted in 2006 itself by Singh’s PMO, when Modi had first made the false claim. The PMO had termed such remarks, “a deliberate and mischievous misinterpretation of what the Prime Minister said here yesterday at the meeting of the National Development Council, on fiscal priorities of the government.” It was termed “an avoidable controversy has been generated. The Prime Minister’s observations have also been quoted out of context in some sections of the electronic media, fuelling a baseless controversy.”

The full text of the paragraph in which the Prime Minister referred to the issue of minority empowerment to clarify the matter is as follows:

“I believe our collective priorities are clear: agriculture, irrigation and water resources, health, education, critical investment in rural infrastructure, and the essential public investment needs of general infrastructure, along with programmes for the upliftment of SC/STs, other backward classes, minorities and women and children. The component plans for Scheduled Castes and Scheduled Tribes will need to be revitalized. We will have to devise innovative plans to ensure that minorities, particularly the Muslim minority, are empowered to share equitably in the fruits of development. They must have the first claim on resources. The Centre has a myriad other responsibilities whose demands will have to be fitted within the over-all resource availability.”

The PMO’s clarification said. “it will be seen from the above that the Prime Minister’s reference to “first claim on resources” refers to all the “priority” areas listed above, including programmes for the upliftment of SCs, STs, OBCs, women and children and minorities.

Opposition reacts

Chairman, Media and Publicity department of the Congress, Pawan Khera said in a video message in a post, “We challenge the Prime Minister to show us if the word Hindu or Muslim is written anywhere in our manifesto. This kind of lightness is there in your mentality, in your political values. We have talked about justice for the youth, women, farmers, tribals, middle class and workers. Do you object to this as well?”

Khera was referring to earlier mistruths uttered by Modi about the “Muslim League” having influenced the Congress manifesto.

In Jharkhand’s Ranchi at an opposition rally, Congress president Mallikarjun Kharge is reported to have said by BBC Hindi, “If democracy and the Constitution end in the country, then the people will have nothing left. Babasaheb Ambedkar ji and Jawaharlal Nehru ji gave equal voting rights to everyone, due to which all classes got respect. But Narendra Modi wants to snatch their rights from the poor.”

B.V. Srinivas termed it as unfortunate that “this person is the Prime Minister of this country, and an even bigger tragedy is that the Election Commission of India is no longer alive.” He said that “due to the frustration of impending defeat, the Prime Minister of India is openly sowing the seeds of hatred, he is polarising by misquoting Manmohan Singh’s 18-year-old incomplete statement, But the Election Commission (Modi ka parivar) is bowing down.”

Modi’s past hate-speech

Modi, in his 12-year tenure as chief minister of Gujarat was known to have made speeches targeting the state’s minority Muslim community brazenly, terming camps where Muslims were forced to stay in after communal violence gripped the state in 2002. Frontline covered him on his Gujarat Gaurav Yatra started shortly after the violence, at a rally at Becharaji in Mehsana district in northern Gujarat, when he said, “What should we do? Run relief camps for them? Do we want to open baby-producing centres? But for certain people that means hum paanch, hamare pachees.” 

In 2017 it was time again for direct speech targeting Muslims when in February he spoke of ‘shamshaan versus kabristan’ campaigning for UP and then for Gujarat elections when the BJP had its worst performance this millennium, in a speech at Palanpur on December 10, 2017 Modi invoked a “secret meeting” to get Pakistan to fix Gujarat’s assembly polls. He said that a meeting was held at Congress leader Mani Shankar Aiyar’s residence, attended by former PM Manmohan Singh, former Vice-President Hamid Ansari, former Army Chief Deepak Kapoor and distinguished diplomats to execute the plot. Modi’s PMO faced embarrassment when in response to an RTI filed by the Congress, his office was forced to say that Modi’s campaign speech could have been based on an “informal input”.

In the only question he has answered as part of a press conference with Joe Biden on June 22, 2023, Modi was asked, “India has long prided itself as the world’s largest democracy, but there are many human rights groups who say that your government has discriminated against religious minorities and sought to silence its critics.  As you stand here in the East Room of the White House, where so many world leaders have made commitments to protecting democracy, what steps are you and your government willing to take to improve the rights of Muslims and other minorities in your country and to uphold free speech?”

In response Modi appeared visibly frazzled and denied all charges. “I’m actually really surprised that people say so.  And so, people don’t say it.  Indeed, India is a democracy.” 

The journalist was trolled online by BJP leaders and supporters to such an extent that the White House had to come out and defend her and strongly denounce the trolling and abuse.

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April 26,2024

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Bengaluru: Voting was underway on Friday in the first phase of Lok Sabha polls in 14 constituencies in Karnataka. Polling began at 7 am and will end at 6 pm.

A total of 247 candidates -- 226 men and 21 women -- are in the fray for the first phase covering most of the southern and coastal districts, where more than 2.88 crore voters are eligible to exercise their franchise in 30,602 polling stations.

The Congress and BJP are locking horns on the electoral battleground again in less than a year. This election is witnessing a straight fight between the ruling Congress and the BJP-JD(S) combine unlike the Assembly elections in May last year which witnessed a triangular contest among the three parties.

The state has a total of 28 Lok Sabha constituencies. The second phase of polling in the remaining 14 seats is on May 7.

In the first phase, while the Congress is contesting in all 14 seats, BJP has fielded nominees in 11 and its alliance partner JD(S), which joined the National Democratic Alliance in (NDA) in September last year, in three -- Hassan, Mandya and Kolar.

Besides the three, the segments where elections are being held on Friday are: Udupi-Chikmagalur, Dakshina Kannada, Chitradurga, Tumkur, Mysore, Chamarajanagar, Bangalore Rural, Bangalore North, Bangalore Central, Bangalore South and Chikkballapur.

According to Election Commission, 1.4 lakh polling officials are on duty for the first phase. Besides them, 5,000 micro-observers, 50,000 civil police personnel, and 65 companies of Central Paramilitary Force and State Armed Police force of other States have been deployed for security. All the 2,829 polling stations of Bangalore Rural parliamentary constituency are being webcast.

"This is as per the request of our returning officers and observers; so we have given more than double the Central paramilitary force for Bangalore Rural constituency. Seven companies of Central paramilitary forces have been inducted at the constituency since April 22," Karnataka Chief Electoral Officer Manoj Kumar Meena has said.

In fact, out of the total 30,602 polling stations in the first phase, 19,701 are webcast, and 1,370 covered via CCTVs, he had added. Chikkaballapur has a maximum number of 29 candidates, followed by 24 in Bangalore Central, and Dakshina Kannada has the least number at nine.

JD(S) leader H D Kumaraswamy from Mandya, his brother-in-law and noted cardiologist C N Manjunath from Bangalore Rural on a BJP ticket against Deputy CM D K Shivakumar's brother and MP D K Suresh of Congress, and erstwhile Mysuru royal family scion Yaduveer Krishnadatta Chamaraja Wadiyar from Mysore, from the BJP, are among the prominent candidates in the fray in the first phase.

Also in the contest are BJP MP Tejasvi Surya from Bangalore South pitted against Minister Ramalinga Reddy's daughter Sowmya Reddy of Congress, and Union Minister Shobha Karandlaje on BJP ticket from Bangalore North against former Indian Institute of Management Bangalore professor M V Rajeev Gowda of Congress.

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