PRECIOUS METAL::: The precious metal dips marginally followed by heavy profit booking seen on past couple of days due to rise in prices of yellow metal. However, optimistic hopes of a possibility interest rate cut by Fed Reserve undermines dollar and lifted bullions. At the time of writing, U.S. gold futures is trading above at $1,336.75 or 0.42% an ounce. In MCX, bullions are likely to open on softer tone ahead of India Producer price Index, which is expected to improve due to rise in food prices. However, overall sentiment for gold is neutral with the resistance of 32800 and 32900 levels and support would be 32500 and 32700 levels.
TOP COMMODITY SPREADS:::
NATURAL GAS: 0.40
MCX Gold-Silver Ratio: 89.27
The ratio suggest gold is undervalued as compared to the silver , going forward more upside can be seen in the gold as relative to the silver.