Gold, Silver Inch Up on Firm Spot Demand

Base metals open in red and continue to trade with bearish momentum

Gold, Silver Inch Up on Firm Spot Demand
Gold, Silver Inch Up on Firm Spot Demand
Shritama Saha - 24 May 2021

Gold prices surged by Rs 56 to Rs 48,460 per 10 gram and silver gained Rs 373 to Rs 71,422 per kg in the futures trade on Monday, as participants increased their bets on a strong spot demand.

According to Capital Via Investment Advisor’s report, “International Gold is trading with marginal sideways and positive bias. It is trading below $1900 levels which may be breached in the coming days. On the domestic front, MCX gold June opened on a positive note and is trading with a marginal sideways and positive bias since morning. Likewise, international silver is also trading with marginal sideways and positive bias below $28.00 levels. In the upcoming sessions, support of $27.50-$27.30 levels could be tested. MCX Silver Jul gave a gap up opening and is trading in a sideways range of 71200-71744 since morning,”

Gold prices were 0.23 per cent higher at $1,883.30 per ounce, while silver prices were 0.89 per cent higher at $27.73 per ounce in global markets

The report further stated that copper May began the day on a bearish note and has been trading flat since then. Prices broke through significant support at 753-749 in the previous session and are currently trading below it. For the day, LME copper supply is in a slight deficit, which could assist the upwards move. Zinc opened with a gap down and has been trading with minor sideways and positive bias all day.

Zinc futures prices declined 1.34 per cent to Rs 228.05 a kg on Monday, as speculators trimmed their exposure after unfavourable spot market indications. Aluminium slipped Rs 2.30 to Rs 185.85 a kg as traders cut their positions due to a poor trend in the spot market. Copper futures fell 0.09 per cent to Rs 739.85 a kg on Monday, as dealers reduced their positions amid weak demand in the domestic market. Only nickel climbed 0.67 per cent to Rs 1,230.50 per kg in the futures market among the base metals, as speculators opened new positions on increased demand from alloy makers in the spot market.

On the Multi Commodity Exchange, gold contracts for June delivery rose Rs 56, or 0.12 per cent, to Rs 48,460 per 10 gram in a business turnover of 5,703 lots, silver contracts for July delivery rose Rs 373, or 0.52 per cent, to Rs 71,422 per kg in 10,872 lots, zinc contracts for May delivery fell Rs 3.10, or 1.34 per cent, to Rs 228.05 per kg in 1,079 lots, and aluminium contracts fell Rs 3.10, or 1.34. In a business turnover of 1,121 lots, nickel contracts for May delivery rose 8.20 per cent, or 0.67 percent, to Rs 1,230.50 per kg, while copper contracts fell 70 paise, or 0.09 per cent, to Rs 739.85 per kg.

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