PRECIOUS METAL: The precious metal prices are lacklustre on Tuesday, dropped more than 1-month low but manage to sustain above $1500 psychological levels. Stronger dollar undermined the demand of safe-haven gold after Trump stated that, he will be talking to China next week and that China wants a deal. At the time of writing, U.S. gold futures is trading lower 0.5% to $1,502 per ounce. In MCX, gold prices are likely to open on a softer tone supported by global cues. However, on MCX, Gold contracts in December closed in red by Rs 40 or -0.10%, at Rs. 39,030 per 10 grams with the turnover of 1629 lots, while October contract contracted from the previous trading session with a turnover of 17760 lots. Overall sentiment for gold is neutral with immediate support of 38,100 levels & 37,900 levels while resistance would be 39,000 & 39,200 levels.
TOP COMMODITY SPREADS:
NATURAL GAS: 0.10
MCX Gold-Silver Ratio: 80.51
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.