PRECIOUS METAL: The precious metal is marginally up on Monday on the expectation of monetary policy easing by the world's major central banks due to softer global economic data, which pointing weakness in the economy. At the time of writing, U.S. gold futures is up 0.10% at $1,516 an ounce from the previous close of $1,515.50. In MCX, gold prices are likely to open on a softer tone in the domestic market as global price scenario showing limited gains led by the US and Chinese economic data. However, on MCX, Gold contracts in December closed in red by Rs 377 or -0.96%, at Rs. 39,417 per 10 grams with the turnover of 2742 lots, while October contract remained flat from the previous trading session with a turnover of 22365 lots. Overall sentiment for gold is positive with immediate support of 38,400 levels & 38,200 levels while resistance would be 39,700 & 39,800 levels.
TOP COMMODITY SPREADS:
NATURAL GAS: 0.60
MCX Gold-Silver Ratio: 78.64
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.