7/22/2011 05:28:00 PM
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MCX Bullion Tips
Gold Trend
Gold futures shed 0.03% to Rs 23,198 per 10 grams as participants reduced their positions, taking cues from weak global market. At the Multi Commodity Exchange, gold for delivery in October fell by Rs 7, or 0.03%, to Rs 23,198 per 10 grams, with a business turnover of 309 lots. Gold for delivery in August also moved down by Rs 4, or 0.02%, to Rs 22,889 per 10 grams, with a trade turnover of 1,988 lots. It closed 0.9% lower at Rs 22,893 per 10 grams in the previous session.
Spot Gold prices came under pressure yesterday and closed around 1 percent lower as the European leaders agreed on a multi-billion euro rescue package for Greece which helped reduce fears over the spreading debt contagion in the European economies and added downside pressure on the yellow metal which is considered as a safe-haven asset during economic uncertainty. But sharp losses in gold were cushioned on a account of a weaker dollar and on expectations that the Standard & Poor’s could downgrade US credit ratings within three months. Week-on-week Spot Gold has increased around 0.7 percent touching a high of $1609/oz.
We expect gold and silver prices to come under pressure today as market sentiments rise on the back of bailout to Greece. This is expected to reduce the appeal of precious metals as a safe-haven. However, a weaker dollar will cushion sharp downside in prices.
Silver trend
On a broad bias 57000/56000 looks to be possible, early attempts to evolve into a sell off targeting the same are expected to face stiff support at 57700, which if unsuccessful would diffuse the weak momentum, which we favour today, and expect to see prices recovering towards 59000 or more.
Base Metal
Copper Trend
The bounce followed last yesterday’s sharp fall, is seen capped near 435-436 region. Break of the same, and ability to float above 437 would signal reaction rallies towards 441/444. Prices have to close below 431 to negate the view and resume fresh selling pressure towards 425 later.
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