GOLD: Gold prices declined for the fifth straight day domestically, losing Rs 25 to Rs 18,475 per ten gram on increased selling by stockists, influenced by a similar trend in global markets. Trading sentiment remained weak on concerns that global economic recovery might slow down demand for the yellow metal.
Gold prices in global markets, which usually set the trend for the domestic markets, tumbled by $4 an ounce to trade at $1,178.20. Gold prices slid by more than $10, touching intraday low of $1,176.85/oz on Monday. After yellow metal touched a lifetime high of $1,265/oz in June, prices have actually nosedived and are down by more than 6%. But the fact cannot be ignored that gold has been the only asset class, along with US treasuries, to remain in positive territory year-to-date.
"Support in gold can be pegged at $1,175/oz and buying can be expected at lower levels from the bull camp," said a Religare Commodities report. Gold at MCX was Rs 18,221 per 10 gms.
SILVER: Silver ready also fell further by Rs 100 to Rs 28,900 per kg, taking cues from overseas markets. Comex silver lost more than gold in the last trading session on account of weak industrial demand. Silver lost more than one per cent and breached technical support of $17.52, indicating further downside in the white metal.
However, it has still not breached its strong support of Rs 28500/kg on MCX and once that is breached, there can be further drop in prices. It is trading at $17.44, lowest level since July.
BASE METALS : Pick up in industrial demand influenced the metal prices. Copper climbed for the second day in Asia, on optimism that economic growth in China, the world's largest user of metals, will boost demand and offset a slowdown in the US and Europe. Copper for three-month delivery rose by 1.2 per cent to $ 6,588 and nickel climbed 1.1 per cent to $19,000 a metric tonne on the London Metal Exchange. Copper at MCX Aug contract was trading at Rs 309.20 per kg.
Copper futures extended gains in evening sessions tracking firm overseas markets and support from a weaker rupee, which made the dollar-denominated red metal expensive, analysts said. "Technically, copper prices are seen heading once again towards the immediate resistance level of Rs 317. Breach of this level will boost prices enough to test Rs 326 in the near term", said Basant Vaid, senior research analyst, Bonanza Commodity Brokers.
Among other base metals, zinc July was trading 1.12 per cent higher at Rs 85.95 per kg, while lead for July delivery was trading 0.42 per cent higher at Rs 84.05 per kg. Lead could be bought at 84.20, targeting 86, maintaining a stop loss of 82.50, said Aurobinda Prasad, head of research, Karvy Comtrade. Nickel for July delivery was trading 0.28 per cent higher at Rs 896.50 per kg. July aluminium was trading 1.08 per cent lower at Rs 91.85 per kg.
