Gold, Silver See Price Drop on Muted Demand for Second Day

Base metals trade with marginal bullish momentum because of China's uncertain policy reaction to rising inflation

Gold, Silver See Price Drop on Muted Demand for Second Day
Gold, Silver See Price Drop on Muted Demand for Second Day
Shritama Saha - 21 May 2021

Gold futures prices declined Rs 43 to Rs 48,501 per 10 gram, as speculators cut their positions due to limited demand on Friday. Participants cut their bets on poor demand as silver futures fell Rs 507 to Rs 71,797 per tonne.

“International Gold is trading with marginal sideways and positive bias. It breached the major resistance of $1840-$1860 earlier this week and is sustaining above them. On the domestic front, MCX Gold June gave a gap down opening and is trading in a sideways range of 48336-48538 since morning. Prices are sustaining above 50-SMA and we may expect them to rise during the evening session. Like Gold, International Silver is also trading with marginal sideways and positive bias below $28.00 levels. In the upcoming sessions, support of $27.20-$27.30 levels could be tested,” says a commodity report by Capital Via Investment Report.

In the futures market on Friday, aluminium prices increased 0.85 per cent to Rs 189.25 a kg, as speculators built new positions amid a favourable trend in the spot market. Zinc, likewise, increased by 0.74 per cent to Rs 232.60 a kilogram. Participants offloaded their positions on weak demand in the spot market, causing nickel to fall 1.07 per cent to Rs 1,237.90 per kg. Copper futures fell 0.7 pe rcent to Rs 746.85 a tonne as traders reduced their positions due to weak domestic demand.

Silver contracts for the July delivery fell Rs 507, or 0.7 per cent, to Rs 71,797 per kg in a business turnover of 10,570 lots on the Multi Commodity Exchange, nickel contracts for the May delivery fell Rs 13.40, or 1.07 per cent, to Rs 1,237.90 per kg in a business turnover of 1,954 lots, and zinc contracts for the May delivery rose Rs 1.70, or 0.74 per cent, to Rs 232.60 per kg in a business turnover of 1,954 lots

Following a day in which bears outnumbered bulls, all base metals on the MCX continued to trade with marginal bullish momentum, according to the report. Copper May began the day on a negative note and has been trading in the same direction since then. Prices have broken through the important support levels of 753-749 and are currently trading below them. Aluminium began the day on a flat note and has been trading with a bullish bias all day. The previous session saw a strong bearish breakout, with the market trading at 186.1 levels after more than a month. Prices had risen more than 2 per cent from their lows in the previous session.

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