PRECIOUS METAL: The COMEX precious metal is soaring in commodity market, touched 6-years high after Fed hinted to cut rates from next month, which pushed dollar under pressure and escalating fears amongst traders about increasing uncertainty in the economy and sharp fall in U.S. Treasury yields observed. At the time of writing, U.S. gold futures is trading above 0.1% to $1,414 an ounce. In MCX, bullion is likely to open on positive tone followed by global cues as domestic market players are cautious about rising risks global market. However, on MCX, Gold contracts in October were closed in green by Rs 972 or 2.92%, at Rs. 33,281 per 10 grams with the turnover of 1650 lots, while August contracts saw an increase in turnover of 22,729 lots. Overall sentiment for gold is positive with immediate support of 32,900 levels & 32,800 levels.
TOP COMMODITY SPREADS:::
NATURAL GAS: 2.40
MCX Gold-Silver Ratio: 88.67
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.