Gold Commodity market trading feel our view stands in the same line with Bullion expected to continue under perform, as confirmed in our weekly report. Equities trade upper and Dollar for the most part on a flat to positive note is likely to put downbeat demands on Gold. As of closing quote, we saw it was balanced near the $1232 per ounce blotch. Looking at other most important developments due in current week, the FED is expected to completely end its monthly bond-buying program in its meeting this Wednesday whereas positive cues from European banks which managed to pass the stress test also hurt Bullion commodity against its safe haven demand. ETF investments stay low with SPDR fund holdings sliding to fresh 6 year low. We maintain selling bias in the commodity today.
Global Market View as we come back post a big weekend holiday, Asian equity markets are trading on a mixed to positive note with recovery in US markets last week aid shore up. S&P 500 closed at 1964.58 up by 0.7percentage on Friday long-lasting its optimistic drive from the larger part of the week. Owing to a long holiday for the Indian financial markets, we have missed out on the global bounce back on the equity markets front that has been observed for the last few trading sessions. In terms of currency, Asian currencies are trading on a marginally positive note with respect to dollar. US dollar directory has remained assortment bounce in the last few days currently hovering near the 85.55 mark. Euro has respected slightly, at the same time as pound has depreciated with respect to the dollar as compared to Wednesday; and are currently trading at 1.2708 and 1.6105 respectively.
Economic data: EU and US to dominate with IFO Business climate survey from Germany in afternoon followed with Market Services/Composite PMI and Pending home sales from the US which might infuse good volatility in evening session
As stated above, we hold a nearly similar stance in silver commodity in intraday with bias largely seen bearish. On the major note, base metals are largely steady which might not lead to any extended pressure on the commodity though we feel moderately stable to better economic cues from EU and US due today evening may continue to cast negative shadow on the Bullion basket including silver commodity. We recommend selling the same on pullbacks today.
Commodity intraday Trading Tips
Sell Silver Mcx Dec below 38250 SL 38450 Tgt 37700
Buy Aluminum Mcx Oct above 119.80 SL 119 Tgt 121