Gold prices at the COMEX are seen trading at $1292, down by $4 from the previous close. There have not been many developments overnight on the gold front, while the discussion in the US on the debt ceiling is still in progeny, any fresh developments for the economy should pull gold prices lower. We believe that these days, there are no other factors influencing gold, except the developments from the US. In fact, the economic numbers are also not suggestive of any trend on commodities directly. Therefore, we suggest remaining on the lower side view on gold prices for the day. We believe they should not have much of an impact on gold prices. From the derivatives front, volumes have been improving for the past two sessions and, the open interests are marginally improving, suggesting that the bearishness in gold is still intact. Therefore, we recommend selling gold futures contracts for the day.
Fact: The gold holdings at the SPDR ETF have been declining continuously and, they stood at 896.39 yesterday, down from 898.18 tons on the day before
Silver December futures are seen trading at $21.72 down by 0.76% and, we expect the bearish view to remain intact for the day. As explained in the gold and global market analysis reports, we believe that the only factor that is keeping bullion lower is the discussion taking place in the US on the debt ceiling. In this regard we expect silver to continue to trade down. Nonetheless, the impact of bearishness in silver should be minimal over gold, as the latter is seeing a smaller rate of fall, supported by higher equity prices across the globe and positive base metals at the LME market. Therefore, we expect it to be lower but, the rate of fall may be lower than gold’s. Hence, we also suggest trading in a ratio strategy,
Where we recommend selling gold and buy the silver futures contract. From the derivatives front, the volumes and the open interests have shown a slight improvement and, because of which, silver’s bearish trend may remain intact. Overall, we recommend selling silver for the day for a minimal profit potential.
TODAY STOCK MARKET TIPS
BUY CRUDE OIL ABOVE 6302 SL 6280 TGT 6334
SELL MENTHA OIL MCX OCT BELOW 841 SL 848.5 Tgt 834
ECONOMIC INDICATORS:
| DATE | TIME | Region | Indicator | Period | Survey | Prior |
| 11.10.2013 | 11:30 | GE | CPI MoM | Sep F | 0.00% | 0.00% |
| 11.10.2013 | 14:00 | UK | Construction Output Sa MoM | Aug | 0.80% | 2.20% |
| 11.10.2013 | 17:30 | JN | Industrial Production YoY | Aug | —- | 2.60% |
| 11.10.2013 | 18:00 | US | PPI MoM | Sep | 0.20% | 0.30% |
| 11.10.2013 | 18:00 | US | Retail Sales Advance MoM | Sep | 0.20% | 0.20% |
| 11.10.2013 | 18:00 | US | Retail Sales Ex Auto MoM | Sep | 0.40% | 0.10% |
| 11.10.2013 | 19:25 | US | Univ. of Michigan Confidence | Oct P | 77 | 77.5 |
| 11.10.2013 | 19:30 | US | Business Inventories | Aug | 0.30% | 0.40% |
| 11.10.2013 | 10/15 | GE | Import Proice Index MoM | Aug | -0.10% | 0.30% |
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