Mcx Gold Commodity market Trading fell as of yesterday’s closing, we have seen sharp movement in international markets as it surged in late night trade tracking huge slump in US Dollar after the release of FOMC Meeting minutes. Spot Gold jumped heavily late night IST and its repercussions are being reflected on Comex prices today which are standing with a gain of 1.6percentage to $1225 per ounce mark. However, note that other than FED related cues which we were anticipating to drive good volatility in the commodity, all other factors still call for bearish sentiment to continue in near-term. On that note, we are daring to maintain our bearish bias in the commodity however advice traders to only look for momentum trades. At the domestic market gold may see a gap wherein those initiating Shorts are advised to maintain strict SL above 27000 at MCX Dec contract. Gold Dec prices at Comex moved in-line with our view yesterday with the commodity largely traded in a ranged manner with negative bias. Comex Gold active contract slipped 0.5percentage to $1206 r ounce whereas at MCX Gold Dec gained 0.15percentage to Rs 26880 per 10 Gms.
Global Market View: Today’s morning session, all the Asian markets are trading on a positive note tracking the spectacular bounce of the US markets. S&P 500 closed at 1968.59 up by 1.75 following the FED minutes from the September meetings which were released last night. From reading between the lines, one can now assume that the speculation about an early rate hike from the US would recede in the near term. SGX Nifty is trading on a positive note up by 40.00 points in early trade this morning, indicating a pull back from the recent declines. Dollar index has declined after the Fed minutes last night and is currently trading at 85.30. Most of the global currencies have appreciated with respect to the dollar. Euro is trading on a positive note to the dollar in the morning session at 1.2728 appreciating by 100 pips in the international market, and Pound too is currently trading on an appreciating note at 1.6169.
Economic data: Germany: Trade balance, Current account balance, UK: BOE rate decision, US: Jobless claims and the wholesale inventories. Likewise the case with gold, silver too is trading higher today with gains of over 2.25percentage at Comex to $17.45 per ounce.
Bullion rose as Fed officials expressed concern that US economy may be at risk from a global slowdown. For today is concerned, we may see some a bit of moderate positivism extending though overall trend has not changed still. For today we suggest making only momentary trades. We also expect that in intraday, once again good volatility during the US session on bullion as the jobless numbers are likely to rise. Onto the Ratio side, we advised Gold/Silver Ratio buying wherein traders might have made modest profit as per closing. Nevertheless, those who carried forward could have seen their gains reversing down as we are seeing the opposite forces playing in against our view that silver would underperform gold. We advice traders holding the ratio to maintain stop loss with reduced risk exposure. Fresh positions should be avoided as market lack clarity at this point Silver followed similar path as gold with the commodity though it saw good underperformance as equated to gold, as also been our view yesterday. Silver comex Dec contract slumped 1percentage to $17.06 per ounce while MCX silverwork same month’s expiry skid 0.3percentage to Rs 38220 per Kg.
Commodity Intraday Trading Tips
Sell Silver Mcx Dec below 39150 SL 39750 Tgt 38500
Sell Natural gas Mcx Oct below 240 SL 243 Tgt 235