Gold regains its sparkle
Commodity Online MUMBAI: Yellow metal seems to be still a safe bet even though there are fears of a crash.
Strengthening the feeling of buyers in gold, Futures prices of the commodity witnessed a surge in Multi Commodity Exchange (MCX) on Tuesday. This is after three weeks of fall the yellow metal showed the signs of upward movement.
According to dealers, traders opted for continual bookings with caution as the price could head upwards due to sub-prime worries in the US.
Gold traded at Rs 10,043 per 10 gm on Tuesday, 0.83 per cent higher than the Monday close of Rs 9,924 per 10 gm.
However, the physical market reacted sharply to the still softening spot demand with standard and pure gold closing with marginal falls of Rs 10 and Rs 15 to Rs 10,070 and Rs 10,120 per 10 gm, respectively.
Gold’s Futures breached the benchmark level of Rs 10,000 for the first time in three weeks, thus witnessing an overall decline of 5 per cent. Even the market saw some upward movement, fears that near month deliveries will decline to a range of Rs 9,900-9,750 are still lurking.
According to commodity houses, gold prices are expected to test the Rs 9,850-9,650 support range for the December contract.
Selling could begin from levels of Rs 9,950-10,100 with the risk level at Rs 10,150 per 10 gm.
Open interest for December gold on MCX was at 9,453 lots, down from 9,522 the previous session. Total traded volume was recorded on Monday at 35.2 kg.
Spot gold inched up to $780.70/781.30 an ounce from $780.10/780.90 in New York on Monday, when it hit an intraday low of $774.90 on stock-market jitters and investors’ risk aversion.
The most-active December gold contract on the Comex division of the New York Mercantile Exchange rose $3.4 to $781.4 an ounce in electronic trades.
MCX Silver 05 July 2012
contract was trading at
Rs 55888 , up Rs. 493 . What's your view on it?
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