Mcx Gold Commodity Trading has lost modest weight in morning session with gold prices at electronic session trading lower by half a percentage to $1192 per ounce. While we had a maintained a largely momentary trade outlook for Bullion yesterday, they turned higher with markets recording strong gains in especially Gold. We believe, Gold may continue to trade ranged with moderate weak bias continuing as mixed equities and slightly gains in USD during early session may act as a resistance to the commodity. We feel USDX may see further gains building though as we have the FED minutes release late night (IST) today with volatility too expected to be higher. With overall bias for the commodity continuing to be lower, we maintain selling stance in the commodity today. Locally, INR should be watched for any kind of intraday adjustments.
Global Market View: Markets witnessed hay wire movements as per different asset classes were concerned with Bullion managed decent gains, equities too added weight though base metals and in energy prices inched lower. In terms of currencies, USDX was largely ranged though moved modestly in loss during late evening trade on Tuesday as Euro currency stepped up though losses in the US Dollar were stemmed amidst weakness in the GBP and the Yen. In major economic variable yesterday, positive surprise came in the form of positive Euro area ZEW expectation that came much higher than the market expectations pushing the Euro currency above the 1.25 mark. In major developments today, we are seeing Asian equities trade on a mixed note though Yen moved to fresh seven year low around 117 against the USD after Japanese Prime Minister Shinzo Abe called an early election and postponed a sales-tax increase. Today morning, Bullion and Crude are down though metals are mixed to tad in the green.
As said in above write-up, we believe while both metals may traded on a weaker today, moderate negative view in most base metals and weaker Chinese property market data today morning makes a case for weaker industrial commodity and may put more pressure on silver commodity. So on one side, we recommend naked sell call in silver traders can also plan Gold Silver Ratio buying. We re-iterate that risk in the ratio or naked call may be a bit high now as we have FED Monetary minutes to be released. Silver added weight along with gold though weaker Base metals pushed the commodity to trim gains by closing time. Silver Comex Dec after touching $16.40 per ounce at once point of time, higher by just finished 0.7percentage to $16.17 an ounce whereas Silver Dec MCX added 0.5percentage to Rs 35800.
Sell Crude Mcx Dec below 4670 SL above 4700 Tgt 4600
Sell Silver Mcx Dec below 36000 SL above 36500 Tgt 35500