MCX Gold Tips

Stock Markets Weaken Gold Prices:

Unexpectedly weak results from Google dragged down equities on Friday, while the euro fell against the US Dollar, hurt by a perceived lack of progress on a Spanish bailout request. That weighed heavily on Gold Prices, which become more expensive for holders of other currencies when the US Dollar firms. The Google results were followed by other major U.S. companies, General Electric to McDonald’s Corp. and Microsoft Corp. reporting disappointing earnings results on Friday added pressure on World stock markets. The S&P 500 slipped for a second day after rallying 2.3% over the previous three sessions. With three weeks to go before the U.S. Presidential election there’s a bit of hesitancy to keep bets open. Markets are largely in a ‘wait and see’ mode at the moment, with elections in the United States and the transition of power in China happening early November. “Given the importance of China and the US in the global economy, we might not see strong positioning taking place in the next few weeks.

Gold Tips

MCX TIPS :-

MCX Gold futures witnessed a decent recovery in afternoon trades as the global prices edged up above $1740 per ounce though the sentiments could remain depressed following worries over demand in the near term. The metal has been trading lower in the last few days and tested a one month low on COMEX yesterday as the downward correction extended further. Latest Chinese import figures reflect a mild softening in the demand from the world's largest consumer. COMEX Gold futures are quoting at $1742, up four dollars per ounce on the day.

Trade statistics released last week showed mainland Chinese imports of gold from Hong Kong slowed dramatically in August. Hong Kong shipments of the metal to mainland China for the month totaled 54 tons, a drop of 29% from the 76 tons shipped in July, according to data from the Hong Kong Census and Statistics Department. The yellow metal has witnessed a sizeable fall in last two sessions, shedding nearly 50 dollars per ounce amid a flurry of profit selling as the inability of the metal to break above $1800 per ounce levels had a depressing effect on the sentiments. The commodity normally follows risky assets and yesterday's massive jump in stock markets should have helped it.

Meanwhile, the US retail sales were boosted yesterday by the launch of iPhone 5 and registered 1 a rise of 1.1% in September. Equity markets were further helped on media reports that Spain is ready to make a formal request for aid, allowing the European Central Bank to buy its sovereign debt, but is delaying an announcement due to concern about the effect on other euro-zone members.

European equities edged mostly higher today and some buying has emerged in Gold as well. Euro also gained, breaking above 1.3000 levels against the US dollar. This has helped it gain some ground from its one-month low levels of $1728 per ounce and it would be interesting to see how the New York session pans out. The local MCX Gold futures broke under Rs 31000 per 10-gram mark yesterday and witnessed a steady recovery in tune with the global prices. The benchmark December contract on MCX is trading at Rs 30973, down Rs 4 per 10 grams on the day after testing a low of Rs 30862 per 10 grams earlier in the day.

MCX TIPS BY COMMODITY TIPS ADVISORY