The key reason for the drop, according to analysts, is that participants cut their bets
In the futures market on Thursday, gold fell Rs 187 to Rs 48,487 per 10 gram, as speculators reduced their positions due to low demand. Silver prices fell Rs 423 to Rs 71,951 as traders backed out of bets on weak demand.
In the international market, silver was trading 0.71 per cent lower at $ 27.83 per ounce and gold fell by 0.43 per cent at $ 1,873.50 an ounce.
As per a report by Capital Via Investment Advisor, Gold is trading sideways in the international market, with a slightly positive trend. During yesterday's session, it broke over the significant resistance of $1870-$1880 but was unable to hold above it. On the domestic front, the MCX Gold June contract started the day on a negative note and has been trading with the same bias since then. Prices have dropped over 300 points to a low of 48321, which may operate as intraday support for the market. During the evening session, we should expect a price increase. Under the $28.00 level, international silver is likewise trading sideways with a positive bias. Support levels of $27.20-$27.30 could be tested in the next sessions. In the morning session, MCX Silver July opened with a gap down and tested support levels of 71550-71100. The levels of resistance are 72350-72700, which might be tested later in the day.
In the futures market, aluminium slid 40 paise to Rs 191.35 a kg as traders cut their positions due to a poor trend in the spot market. Zinc futures climbed 0.26 percent to Rs 232.10 per kg, owing to strong spot demand. In the futures market, nickel prices gained 0.07 per cent to Rs 1,273.10 a kg, as speculators built new positions in response to growing demand from alloy manufacturers in the spot market. On the back of a pick-up in spot demand, copper futures rose 0.43 per cent to Rs 763.75 per kg in the futures market.
The commodity report further said, “MCX Copper May opened on a flat note and has been trading with negative bias since morning. Prices declined approx 30 points in the previous session and traded in the support zone of 756-748. Like Copper, MCX Aluminium also opened on a flat note has been trading with negative bias since morning. Prices have declined more than 4 per cent since making a high of 199.55 in the beginning of the week.” Following the previous session's 500-point drop in the MCX Metldex, all base metals on the exchange continued to trade with bearish momentum. This is due to the uncertainty surrounding China's policy response to rising inflation.
Gold contracts for June delivery down by Rs 187, or 0.38 per cent, to Rs 48,487 per 10 gram in a business turnover of 6,132 lots on the Multi Commodity Exchange, while silver contracts for July delivery fell Rs 423, or 0.58 per cent, to Rs 71,951 per kg in 10,597 lots. Aluminium futures for May delivery down by 40 paise (0.21 per cent) to Rs 191.35 per kg in 1,408 lots, while zinc futures for May delivery gained 60 paise (0.26 per cent) to Rs 232.10 per kg in 1,578 lots. Nickel contracts for the May delivery traded higher by 90 paise, or 0.07 per cent, to Rs 1,273.10 per kg in 1,901 lots while copper contracts for May delivery gained Rs 3.25, or 0.43 per cent, at Rs 763.75 per kg in a business turnover of 3,423 lots.