Gold & Silver

Gold futures dip, silver seen on a continued downtrend

Rutam Vora Ahmedabad | Updated on December 03, 2019 Published on December 03, 2019

File photo   -  Bloomberg

Gold may hover around Rs 37,700, while silver may test Rs 44,500

Gold futures opened negative on Tuesday with the most active February contract on MCX traded 90 points lower at Rs 37,859 per 10 grams, from its previous close, tracking the global weakness in the yellow metal.

Analysts believed that robust factory data from China amid increasing demand for the United States (US) dollar weighed on international gold prices, which quoted at $1461 for CME December futures, down $1.2 from previous close.

In domestic markets, spot gold on Monday ended lower at Rs 37,979 per 10 grams (of 999 purity without taxes) as quoted by India Bullion and Jewellers Association (IBJA) for PM reference rates.

On Tuesday, spot gold is expected to hover around Rs 37,700 levels reflecting the global weakness in the precious metal.

An Angel Broking International Commodity Report said, "On the MCX, gold prices are expected to trade sideways today, international markets are trading lower by 0.10 percent at $1467.75 per ounce."

Silver prices too moved negative on Monday with international spot silver falling 0.71 per cent to close at $16.9 per ounce. On the MCX, silver prices declined 0.36 per cent to close at Rs 44,200 per kg on Monday.

"Silver prices opened negative on Tuesday by 46 points. March silver futures bears also have the overall near term technical advantage. Prices are in a three month old downtrend on the daily bar chart," said Aasif Hirani, Director, Tradebulls.

"For silver bulls, their next breakout objective is to push prices above 45700. Trend is weak and we expect silver prices to remain under pressure as long as 45200 is not breached on the upside. Expect silver to test lows of Rs 44, 500-Rs 44,300 in intra-day today," Hirani told Businessline on the silver outlook.

For the first time in seven months factory activity in China saw expansion. The purchasing managers’ index (PMI) rose to 50.2 in November versus 49.3 in October, and was expected to come in at 49.5, which kept silver prices under pressure in the morning session, the analyst stated.

Published on December 03, 2019
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