PRECIOUS METAL: The precious metal is lacklustre on Friday from previous trading session on optimistic US-China trade war and stronger than expected US economic data has lifted risk appetite of market players, which helped investor to shift their focus to equity asset class. At the time of writing, U.S. gold futures trading marginally weak at $1,522 an ounce. In MCX, gold prices is likely to open on softer tone as improvement in prolonged US-China trade war sentiment has made the precious cheaper. However, on MCX, Gold contracts in December closed in red by Rs 912 or -2.26%, at Rs. 40,365 per 10 grams with the turnover of 1992 lots, while October contract jumped from the previous trading session with a turnover of 22365 lots. Overall sentiment for gold is positive with immediate support of 39,400 levels & 39,600 levels while resistance would be 40,200 & 40,300 levels.
TOP COMMODITY SPREADS:
NATURAL GAS: -1.00
MCX Gold-Silver Ratio: 77.48
The ratio suggest Gold is undervalued as compared to the Silver , going forward more upside can be seen in the Silver as relative to the Gold.