PRECIOUS METAL: The precious metal edged higher on Friday due to aggressive sentiment over monetary policy and renewed trade tension between US-China has boosted the demand of gold. At the time of writing, U.S. gold futures is trading up by 0.30% at $1,410.95 an ounce. In MCX, gold prices is likely to open on positive tone led by global economic fundamental and decline in demand in the local market. However, on MCX, Gold contracts in October closed in red by Rs -66 or -0.19%, at Rs. 35,115 per 10 grams with the turnover of 2315 lots, while August contracts are also surged with a turnover of 20,842 lots. Overall sentiment for gold is still positive for investment purpose with immediate support of 34,600 levels & 34,400 levels while resistance would be 35,100 & 35,200 levels.
TOP COMMODITY SPREADS:
NATURAL GAS: -0.30
MCX Gold-Silver Ratio: 91.91
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.