Gold prices on MCX are seen to be around 50,500. At the same time, gold hinges above $ 1,900 on Comex.
With the beginning of Navratri, there is a slight increase in gold and silver. However, gold is about 5 thousand rupees below the record level and silver is about 16 thousand rupees. In such a situation, there has been a desire for jewelry buyers in festivals.
Gold in a small circle
Gold prices on MCX are seen to be around 50,500. At the same time, gold hinges above $ 1,900 on Comex. Gold is under pressure due to strong dollar. The delay in relief packages in the US is showing weakness. Gold is being supported again by lockdown in Europe.
Also Read: Gold at 6-year high, gains Rs 1,108 per 10 gram last week
Weakness in silver
Silver on MCX looks closer to the level of Rs 61,300. The dollar is strongly under pressure on silver. This is also being supported by the lockdown in Europe again.
Crude weakness
Crude oil prices are seeing weakness today. There is concern about demand from Corona’s second wave in the US and Europe. At the same time, crude supply is also weak due to increasing supply of Libya. Brent prices are close to the $ 43 level. Corona’s second wave has brought it weakness. The US rig count is improving from a 15-year low. OPEC + has a virtual meeting today. OPEC will increase supplies by 2 mbpd from January.
Strength in metals
Today, metals are showing an edge due to good Chinese data. China’s Q3 GDP growth has increased from 2.7 per cent to 4.9 per cent on a quarterly basis.
China’s industrial output grew 6.9 percent in September. China’s retail sales grew 3.3 percent in September. There is a strong resistance in the dollar.
MCX begins trading in metal index futures from today
MCX has started trading in metal index futures from today. This index will be based on 5 base metals traded on the exchange. The exchange will now launch contracts for November, December and January.
Agri commodity
Talking about cotton, it is getting faster. MCX cotton is seen at an upper level of 8 and a half months. There is a possibility of damage to the crop due to recent rains. There is a possibility of damage in Telangana, Maharashtra, Karnataka. Cotton is getting support due to good demand from mills and purchase of CCI. ICE cotton is gaining support very fast. China’s demand is expected to remain strong.
Investment advice by Jatin Trivedi of LKP Securities
BUY METALDEX OCT CMP 12025 SL 11950 TARGET 12175
BUY GOLD DEC CMP 50525 SL 50350 TARGET 50800
