PRECIOUS METAL: The precious metal slipped after disappointing chinese economic data as GDP The Chinese economy grew by 1.6% QoQ in the three months to June 2019 while 6.2% YoY, slowing from a 6.4% expansion and in-line with market expectations. At the time of writing, U.S. gold futures is down 0.01% at $1,411.50 an ounce. In MCX, gold prices is likely to open on softer tone led by mixed global cues and decline in demand in the local market. However, on MCX, Gold contracts in October closed in green by Rs 240 or 0.69%, at Rs. 35,020 per 10 grams with the turnover of 1538 lots, while August contracts are also surged with a turnover of 16,230 lots. Overall sentiment for gold is still positive for investment purpose as Fed rate cut boosted the demand for safe-haven with immediate support of 34,800 levels & 34,900 levels while resistance would be 35,100 & 35,200 levels.
TOP COMMODITY SPREADS:
NATURAL GAS: -0.20
MCX Gold-Silver Ratio: 91.04
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.