Mcx Gold commodity market trading slipped heavily last week where in we saw marginal recovery in prices yesterday while they trade steady as of early Asian trade today. Although the trend is still down but oversold nature of the prices is perhaps not letting prices to fall much from here. In the meanwhile, the USD index is holding tight at 84.66, neither falling much nor rising. So, we believe its good amount of short covering should have had driven prices slightly higher along with weaker equities. While, we look at the derivatives front, the trading volume and the open interests are managing higher indicating that price trend is still healthy and bearish. SPDR Holding too scaled modestly lower to fresh lows since 2008. We remain short in gold on higher levels for the day.
Global Market View: Global equities posted a negative close last day while this morning Asians are trading marginally higher and that should be possibly because of Chinese manufacturing number which came better that everyone’s expectation. HSBC/Markit Man PMI stood at 50.50, prior number was 50.20 against anticipation of a reading near 50. We believe today should be a steady day as no major heavy weight data are expected except the EU manufacturing number and US Markit manufacturing PMI followed by the Richmond Fed manufacturing index Both Gold and silver recorded high volatility yesterday with two opening lower on Monday though managed to cut losses in latter half with Gold closing 0.1percentage higher to $1218an ounce at Comex.Gold MCX in India too added 0.35percentage by closing time and Stood at Rs 26590 per 10 Gms
Mcx Silver commodity too is trading steady today most likely that yesterday’s rebound from near 4 year lows of $17.35 an ounce might be tested once again in coming sessions. Note that industrial metals too staged good recovery yesterday which too could be one of the reasons for the very strong short-covering in the commodity. For the day, we might see modest support to the commodity coming on the back of better Chinese Manufacturing PMI reading; though still note that overall trend stays down. On that front, we recommend selling the whitish metal on higher levels today. Silver December contract at Comex was a major dragger yesterday with the commodity opening lower by around 2percentage yesterday though finally marked a modest 0.35percentage closed by the end of trade. In India, Silver Dec MCX was better off as it settled lower by just 0.1percentage to Rs 39575 per Kg.
Sell Gold Mcx Oct below 26700 SL 26800 Tgt 26450
Sell Silver mcx Dec below 39600 SL 39950 Tgt 38900