PRECIOUS METAL: After seeing rally on the precious metal from past couple of sessions, today it soften after Fed Reserve indicated lower expectation of monetary easing, which boosted dollar immediately. At the time of writing, U.S. gold futures is trading lower at $1,410.55 an ounce from its previous close of $1418.70 an ounce. In MCX, gold prices likely to open in positive territory as increase in demand of yellow in local jewellery market pushed prices higher. However, on MCX, Gold contracts in October were closed in green by Rs 87 or 0.25% gains, at Rs. 34,660 per 10 grams with the turnover of 1590 lots, while August contracts surged with a turnover of 26,634 lots. Overall sentiment for gold is positive with immediate support of 34,200 levels & 34,100 levels while resistance would be 34,600 & 34,800 levels.
TOP COMMODITY SPREADS:::
NATURAL GAS: -0.30
MCX Gold-Silver Ratio: 90.45
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.