PRECIOUS METAL: The precious metal jumped close to more than six years high as dollar weakens further on dovish Fed, which hinted a possibility of rate cut could be later this year on increasing geopolitical tensions and weak economic data releases by two most giant countries US and China. At the time of writing, US gold futures is trading above 0.61% at $1408.85 an ounce. In MCX, gold prices climbed too led by overseas sentiments. However, on MCX, Gold contracts in October were closed in green by Rs 122 or 0.36%, at Rs. 34,243 per 10 grams with the turnover of 1140 lots, while August contracts surged with a turnover of 22,919 lots. Overall sentiment for gold is positive with immediate support of 33,800 levels & 33,600 levels.
TOP COMMODITY SPREADS:::
NATURAL GAS: -0.40
MCX Gold-Silver Ratio: 88.69
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.