MCX Gold Commodity Market Trading is witnessing continued losses in the Bullion complex in the fresh week. There are no major cues on the demand supply side for the complex though continued gains in the US Dollar, mixed to moderately positive quite markets and weaker economic cues from China, the world’s largest consumer of precious and industrial metals hurt sentiment in Bullion. Additionally for gold, Bloomberg data showed $1.3 Bln was pulled from US ETP’s tracking precious metals in October, the biggest monthly decline this year. We maintain selling bias in gold though traders need to be careful as volatility may increase in US hours. Gold fell around 5percentage last week of October while it is down in the whole month by around 3percentage to $1170 per ounce. Gold Dec futures at MCX too fell though scale of fall was modestly lower to 3.8percentage at Rs 26135 per 10 grams Huge slide in the commodity was backed by robust economic data from the US especially the improved GDP and rising USD index helped gold commodity to trade down whereas Fed earlier in the week ended its bond buying programmed weighing the metal.
Global Market View for today morning, Asian equity markets are trading on a positive note following US stocks markets last Friday. China’s manufacturing PMI as per HSBC came tad lower than expectations at 50.4 whereas government’s official manufacturing PMI released during the weekend stood at 50.8 in October, lower than September’s 51.1. This is possible keeping Asian equities muted which are trading mixed to positive as equated to strong performance with US equities last week. In terms of currencies, Asian currencies are trading on a depreciating note with respect to the dollar. US dollar index continued to appreciate on Monday standing above the critical 87 mark whereas both the Euro and Yen have depreciated considerably after the announcement of further stimulus from the bank of Japan. This might also have modest negative impact on the INR wherein we need to take care on local currency related movement while trading in Non-Agro commodities in India.
MCX Silver Commodity Market Trading holds a sell stance in silver as seen in the case with Gold commodity. We are seeing Comex Silver trade sharply lower with losses seen over 1percentage as of morning trade. Likely that weaker Gold and modestly subdued Chinese PMI Manufacturing gauge is pushing extended losses in silver commodity today morning. While we maintain our sell view for today, traders need to be cautious as both gold and silver and mainly the whitish metal trade in a oversold phase. Gold Silver Ratio too, last week moved towards 73 mark, its highest since 2008. A fair correction over there is possible in coming sessions. Though trend in up, buying from here is not advised and better that traders await some correction to enter. Silver was a further bigger loser against gold wherein the commodity slipped around 6.25percentage to close near $16.15 per ounce mark while hitting its fresh low in nearly 4 and half years to $15.65 Silver Dec contract in India during the same time was pounding lower by 6percentage to Rs 35800 per Kg mark.
Sell Gold Mcx Dec below 26200 SL 26380 Tgt 25800
Sell Silver Mcx Dec below 38600 SL 35880 Tgt 35150