Gold Sheds Rs 171 amid Demand Slump

Silver gains Rs 463 a kilogram. Zinc, copper futures show positive bias in the market

Gold Sheds Rs 171 amid Demand Slump
Gold Sheds Rs 171 amid Demand Slump
Shritama Saha - 18 May 2021

Gold prices dropped Rs 171 to Rs 48,303 per 10 gram in the futures trade on Tuesday, as speculators reduced their positions amid low demand while the silver prices rose Rs 469 to Rs 73,793 per kg, as participants widened their bets on a firm spot demand.

In the international market, silver was trading 1.29 per cent up at $28.64 per ounce and gold traded 0.12 per cent higher at $1,869.80 per ounce.

As per a report by Capital Via Investment Advisor, International Gold prices are rising as the US Treasury yield falls and the US dollar weakens. After breaching the psychological levels of $1850, international gold is trading with a positive bias. On the domestic front, the MCX Gold June contract opened in the negative and is trading above the 47900-48150 resistance zone. International silver is likewise trading with a bullish bias near $28.50. Prices may rise in the following sessions, trading near $29.00. Prices may rise in the following sessions, trading near $29.00. MCX Silver Jul opened with a gap up after jumping over 2000 points and has been trading in a sideways range of 73700-74100 since morning. Since the previous closure, a rise of almost 600 points has been seen, and the bullish trend could continue to the upside to 74500-75000 levels.

Aluminium prices on Tuesday fell by Rs 1.15 to Rs 196.85 per kg in the futures market as participants trimmed their positions on a low trend in the spot market. Nickel prices rose 0.4 per cent to Rs 1,327.90 per kg as speculators built fresh positions on rising demand from alloy makers in the spot market. Zinc prices on Tuesday rose 1.09 per cent to Rs 240.80 per kg in the futures trade on a firm spot demand. Copper prices on Tuesday traded up by 0.5 per cent at Rs 787.55 per kg in the futures market on the back of a pick-up in the spot demand.

The commodity report further said, “Base metals were trading at lower levels as most metals saw selling from recent highs. As the metals were trading in an overbought zone, investors booked profits. Base metals prices fell as a result of China's decision to limit rising metals prices due to inflation concerns. We are seeing an increase from lower levels, which could lead to prices trading at high levels again in the coming days.” MCX Copper May gave a gap up opening and has been trading higher by Rs 3.90, or 0.5 per cent, at Rs 787.55 per kg with positive bias since morning. Similarly, Zinc May opened with a gap up after gaining more than 3 per cent the previous session, and gained Rs 2.60, or 1.09 per cent, to Rs 240.80 per kg in 211 lots. The market has broken over and is holding above the resistance levels of 237.8- 240.3. The bullish momentum may continue in the evening session, with prices perhaps trading at a fresh high.

On the Multi Commodity Exchange, gold contracts for the June delivery traded lower by Rs 171, or 0.35 per cent, at Rs 48,303 per 10 gram in a business turnover of 6,693 lots, silver contracts for the July delivery gained Rs 469, or 0.64 per cent, to Rs 73,793 per kg in 12,370 lots, aluminium for delivery in May declined by Rs 1.15, or 0.58 per cent, to Rs 196.85 per kg in 1,391 lots, nickel contracts for the May delivery gained Rs 5.30, or 0.4 per cent, to Rs 1,327.90 per kg in a business turnover of 1,499 lots.

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