Today Unemployment Rate Effect Market

Gold it was all about FOMC across the market. We could see the impact of the FOMC meet’s outcome on gold bullion too. During the Asian, European and early US sessions, gold traded higher and made an intraday high of $1359.60 while it closed at $1349.30. The global gold spot market ended at $1344. Spot prices fell more than futures last night in the US as the FOMC’s decision was mostly dovish, helping US dollar rise and therefore, gold traded down. At the local market, gold’s December futures contract was mostly stable and faced no impact from the global prices and ended the session at Rs 30,158 per 10 grams. From the investment front, there has not been any development. The gold ETF holdings at the SPDR gold trust remained unchanged at 872.02 MT. In fact, the economic data released yesterday has no impact on gold.

This morning, gold is seen trading $1338.50 (spot), down by 0.45% while the December futures are trading down by 0.85% at $1338.20. We are seeing a difference in price performance today. The fall is mostly visible in the gold futures contract traded in the Globex platform of the COMEX as Asian investors are selling more today. We believe that gold may remain bearish for the day. However, during the European session there might be good amount volatility ahead of key economic data releases. Later during the US session, we expect a few economic data releases, which are likely to be negative for the economy. However, we believe that these data may not cause much of a fall in the dollar today as the FOMC’s decision may continue to prevail in the market. We also expect gold to remain beneath stress, at least for today.

From the Asian front, gold prices in the local market may not fall much in comparison to global gold prices. The local demand may keep the physical prices higher and so, we may see a similar kind of impact on the MCX futures prices. Also, the rupee is trading weak against the dollar and may keep local gold futures prices higher. Overall, we believe that gold prices will remain lower for the day. Hence, we recommend selling from the higher levels. However, locally, the price fall could be minimal.

Silver ended the day on a positive note at $22.98,up by 2.03% at the COMEX platform. Likewise, silver’s December futures at the domestic market ended at Rs 50,028,up by more than Rs 500.Silver was expected to be more bullish than gold as it was taking positive cues from the higher equities and a bullish base metals complex. Also, from the investment front, there has not been much of a decline and these days, ETF demand is stable at the I-shares holdings.

This morning, silver is trading down by 2.45% at $22.42 while the spot prices are seen trading at $22.40. At the local market, the rupee is trading marginally weak and so, we might see a gap-down opening at the local market. The trend has completely changed after the FOMC decision. In fact, technically we have seen prices sustaining strongly below $23 so now, it is trading well below the same, suggesting that the market will remain lower. The Asian equities are trading down today and the industrial metals are also in the negative, which is likely to pull silver prices further down. Overall, we believe that silver will continue to remain subdued at the global market while the price fall could be minimal locally.

TODAY STOCK MARKET TIPS

BUY CRUDE OIL MCX NOV ABOVE 5950 SL 5933 TGT 5970

BUY NATURAL GAS MCX NOV ABOVE 225 SL 222.30 TGT 228

ECONOMIC INDICATORS:

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