Silver Takes a Steep Plunge, Gold Inches Up
Participants cut their chances on low demand, causing silver futures to fall
In the futures market, gold prices increased by Rs 78 to Rs 48,385 per 10 gram on Monday, as speculators opened new positions in response to strong spot demand. Silver futures slipped Rs 541 to Rs 72,655 per kg as participants reduced their bets on low demand.
“International Gold is trading with negative bias after a ‘Shooting Star’ chart pattern was witnessed on the daily chart. International Silver is also trading with negative below $28.00 levels. On the domestic front, MCX Gold June opened on a flat note and is trading with bearish momentum near 48000 levels. Support is at 48000-47900 levels which when breached with heavy volume could lead to a downfall till 47700 levels.MCX Silver Jul gave a gap down opening and is trading bearish momentum since morning. Prices have already descended more than 1800 points since the previous close,” says a commodity report by Capital Via Investment Report.
In the futures market, aluminium prices decreased Rs 1.30 to Rs 193.40 per kg as traders cut their positions due to a poor trend in the spot market. Speculators cut their exposure to zinc, which slid 0.9 percent to Rs 236.25 a kg, as the spot market provided bearish signs. Participants offloaded their positions on sluggish demand in the spot market, and nickel prices declined 0.82 percent to Rs 1,310.80 per kg in futures trade. Copper futures fell 1.58 percent to Rs 771.50 per tonne as traders reduced their positions anticipating weak domestic demand.
The report further stated that because of mounting inflation fears, all base metals on the MCX are trading with a negative bias, perhaps forcing China to reverse its strategy. The US Federal Reserve is also expected to boost interest rates, according to investors. Copper May futures contract opened with a gap down and has been trading with bearish momentum since the morning. Prices have fallen almost 2 per cent since the previous close and are currently trading in the 766-771 support zone. The MCX Zinc May contract fell more than 2 per cent in the previous session, resulting in a gap down opening this morning.
On the Multi Commodity Exchange, gold contracts for the June delivery traded higher by Rs 78, or 0.16 per cent, at Rs 48,385 per 10 gram in a business turnover of 6,312 lots, silver contracts for the July delivery tumbled by Rs 541, or 0.74 per cent, to Rs 72,655 per kg in a business turnover of 11,025 lots, aluminium for delivery in May declined by Rs 1.30, or 0.67 per cent, to Rs 193.40 per kg in 1,511 lots, zinc contracts for the May delivery traded lower by Rs 2.15, or 0.9 per cent, to Rs 236.25 per kg in 1,979 lots, copper contracts for the May delivery eased by Rs 12.35, or 1.58 per cent, to Rs 771.50 per kg in a business turnover of 3,946 lots.