MCX- Bullions and Base metals News

Bullions- 

COMEX gold futures moved back and forth as the prices hit $1366.40/oz levels in its opening sessions and then prices came off its highs to $1356.70/oz which again took prices to $1363/oz levels, as we see buying at dips situation in the market. Weaker dollar is keeping precious metals firm. The dollar index has incurred losses of nearly 0.40% in Asian sessions only which it sustained till European hours, on speculations that the Fed will announce further quantitative easing in its forthcoming meeting on tomorrow and Nov 3. Today’s data releases in the form of declining ISM manufacturing and construction spending and lowering growth in personal income also puts pressure on the dollar. Silver tracked gold prices higher and rose to $25/oz for the first time in nearly three decades. MCX gold and silver futures also extended gains, tracking overseas prices. Prices may take a dip before the opening or during initial hours of the U.S. markets which will see further

buying in both the precious metals. Indian stockists are also buying gold to gear up for the upcoming festivals which will strengthen the bullion prices. According to industry sources, India imported as much as 43 MT of gold in October. We are expecting prices to trade on higher note in the evening session. However, market may fluctuate on actual data releases.

Base Metals

Base metal prices are trading higher with gains of close to a percent. Chinese PMI data boosted sentiment and sent prices of industrial metals higher. Most of the Asian equity markets closed higher with gains of anywhere

between one to two percent. Dollar index continues to loose ground and is trading lower by 0.4 percent. European equity markets though opened on the higher side have given up most of there gains are currently trading modestly higher.

In the evening, US personal spending is expected to rise whereas the personal income is expected to decline. ISM manufacturing activity is expected to decline whereas the ISM prices are expected to remains stable. Overall, prices might pull back slightly on the lower side if the data turns out to be negative, but are expected to close on the higher side only

Posted in: Base metal Tips,Bullion tip[s,Commodity News