PRECIOUS METAL:: The precious metal remains unflattering ahead of U.S. Federal Reserve's monetary policy decision later in the day. On the other hand poor china's economic growth, escalating slowdown of global growth, which makes metal lacklustre. At the time of writing, U.S. gold futures is down 0.20% at $1,348.40 an ounce. In MCX, bullions are likely to open on softer note as decrease demand in local jewellery market and less dovish commentary is expected from US Fed reserve. However, on MCX, Gold contracts in October were closed in red by Rs 23 or -0.07%, at Rs. 33222.00 per 10 grams with the turnover of 2854 lots, while August contracts saw a turnover of 17,219 lots. Overall sentiment for gold is positive with immediate support of 31,900 levels & 32,200 levels.
TOP COMMODITY SPREADS:::
NATURAL GAS: 0.20
MCX Gold-Silver Ratio: 89.02
The ratio suggest Silver is undervalued as compared to the Gold , going forward more upside can be seen in the Silver as relative to the Gold.