Investors Bet Big on Safe Haven, Gold Gains Rs 352

Silver trading on positive bias, rises by Rs 982, on strong spot demand

Investors Bet Big on Safe Haven, Gold Gains Rs 352
Investors Bet Big on Safe Haven, Gold Gains Rs 352
Shritama Saha - 17 May 2021

In the futures market, gold prices jumped Rs 352 to Rs 48,028 per 10 gram on Monday, as speculators opened new positions in response to strong spot demand.

Participants increased their bets on robust spot demand, rising silver prices by Rs 982 to Rs 72,067 per kg. “International Gold is trading with marginal sideways and positive bias after breaching the resistance of $1838-$1846 levels. International Silver is also trading with a positive bias above $27.50 levels. In the coming sessions, prices can rise and trade near $28.00 levels”, says a commodity report by Capital Via Investment Report.

Participants offloaded their positions on weak demand in the spot market, and nickel prices decreased 0.24 percent to Rs 1,299.50 per kg. As speculators opened new positions amid a bullish trend in the spot market, aluminium prices increased 0.39 percent to Rs 194.90 a kg. As per the report, zinc gave a gap up opening and has been trading with positive bias since morning by gaining 0.45 per cent to Rs 232.20 per kg, owing to strong spot demand. On the basis of a pick-up in spot demand, copper prices rose 0.21 per cent to Rs 775.40 per kg in the futures market.

The report further stated that as most metals faced selling from recent highs, base metals were trading at lower levels. Investors took profits as the metals traded in an overbought zone. As a result of China's decision to restrain rising metals prices due to inflation worries, base metals prices have fallen and we are seeing a rise from recent lows, which might lead to prices trading at high levels again in the coming days.

On the Multi Commodity Exchange, gold contracts for June delivery rose Rs 352, or 0.74 percent, to Rs 48,028 per 10 gram in a business turnover of 6,936 lots, silver contracts for July delivery rose Rs 982, or 1.38 per cent, to Rs 72,067 per kg in a business turnover of 10,324 lots, and nickel contracts for May delivery fell Rs 3.10, or 0.24 per cent, to Rs 1,299.50 per kg in a business turnover of 10,324 lots, copper contracts for delivery in May traded higher by Rs 1.60, or 0.21 per cent, at Rs 775.40 per kg in a business turnover of 3,839 lots.

In New York, silver prices were 1.66 per cent higher at $ 27.82 per ounce, while gold prices were 0.82 per cent higher at $1,853.10 per ounce.

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