MTECHTIPS

MTECHTIPS:-Global Gold gains chanting Spanish mantra; tad low on MCX

With uncertainties looming regarding the Spanish bailout, gold on the Comex climbed and is trading on a positive note. As on 10.34 am the futures are at $1712.35 a gain of 0.21%.On India's MCX, gold for December delivery was seen trading at Rs.31008 with a marginal loss of 0.27% as rupee strengthened against dollar reaching 53.86 in early trade.If Spaniards opt for a bailout, then chances are high that a market rally would emerge according to analysts. Spain has decided to purchase all toxic assets that caused the crisis through a bank called SAREB also known as 'bad bank' in journalist tongue.These assets would be sold to investors who have a risk appetite on attractive terms. The toxic assets include real estate assets too. The net effect is that toxic assets would thus be lifted off from the balance sheets of Spanish banks in crisis making them attractive to investors."SAREB is looking to manage these problematic assets effectively and conservatively," Spanish PM Mariano Rejoy said in a news conference. "This must be a profitable company, so the use of public funds is minimized."Now, in order to fund this bailout and also to recapitalize the banks, the government in Madrid may have to opt for a ECB bail out in the first place. This has not been ruled out by Rajoy who said he may opt for it if it is in the interests of Spanish people.