PRECIOUS METAL: The precious metal is likely to enter into bearish mode led by improvement progress in Sino-US trade deal has erased risk sentiments of traders to some extent, as a result focus of traders shifted to equity class. At the time of writing, U.S. gold futures price is marginally down by 0.13% at $1,501 an ounce. In MCX, gold prices are likely to open on a softer tone supported by improvement risk sentiments in global market. However, on MCX, Gold contracts in December closed in red by Rs 153 or -0.39%, at Rs. 38,758 per 10 grams with the turnover of 2758 lots, while October contract surged from the previous trading session with a turnover of 19746 lots. Overall sentiment for gold is weak with immediate support of 38,200 levels & 38,000 levels while resistance would be 39,000 & 39,200 levels.
TOP COMMODITY SPREADS:
NATURAL GAS: 2.20
MCX Gold-Silver Ratio: 80.03
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.