Analysts attribute it to the rise in demand in the spot market from alloy makers
Gold prices fell by Rs 352 to Rs 46,951 per 10 gram in futures trade on Wednesday as speculators reduced their positions amid low demand. Analysts attributed the fall in gold prices to the trimming of positions by participants.
On the Multi Commodity Exchange, gold contracts for June delivery traded lower by Rs 352, or 0.74 per cent, at Rs 46,951 per 10 gram in a business turnover of 10,849 lots, silver contracts for May delivery tumbled by Rs 1,163, or 1.69 per cent, to Rs 67,795 per kg in a business turnover of 6,164 lots. Aluminium for delivery in May declined by Rs 1.25, or 0.64 per cent, to Rs 193 per kg in 2,067 lots, zinc contracts for May delivery traded lower by Rs 3.10, or 1.32 per cent, to Rs 231.80 per kg in 2,498 lots and, nickel contracts for May delivery gained Rs 10.70, or 0.84 per cent, to Rs 1,289.50 per kg in a business turnover of 1,728 lots. Copper contracts for May delivery eased by Rs 12.70, or 1.66 per cent, to Rs 750.20 per kg in a business turnover of 3,856 lots.
Silver futures on Wednesday dropped Rs 1,163 to Rs 67,795 per kg as participants reduced their bets on low demand, aluminium prices fell by Rs 1.25 to Rs 193 per kg in the futures market as participants trimmed their positions on a low trend in the spot market. Zinc prices fell by 1.32 per cent to Rs 231.80 per kg in futures trade as speculators reduced their exposure taking negative cues from the spot market. Nickel prices rose by 0.84 per cent to Rs 1,289.50 per kg in futures trade as speculators built fresh positions on rising demand from alloy makers in the spot market. Copper futures slipped 1.66 per cent to Rs 750.20 per kg as participants cut their positions amid muted demand in the domestic market.
Analysts said cutting down of positions by participants on easing demand from consuming industries in the physical market mainly kept aluminium prices lower here whereas offloading of positions by participants owing to slackened demand from consuming industries in the physical market mainly weighed on zinc prices here. The rise in demand in the spot market from alloy makers mainly supported the price rise in nickel futures, analysts said. Analysts said trimming of positions by speculators due to muted demand in the spot market mainly led to the fall in copper prices here.
Globally, gold traded 0.60 per cent lower at $ 1,768.10 an ounce while silver traded lower by 0.59 per cent at $ 26.03 per ounce in New York.