MCX Gold futures are trading in the negative terrain,
tracking the sudden losses in the global prices and 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 modification extended further
amid sound US retail sales numbers and a surge in the US equities. COMEX Gold
futures are quoting at $1738, nearly unaffected on the day.
The golden metal has witnessed a sizeable fall in last two
sessions, coming off nearly 50 dollars per bounce amid a flurry of profit
selling as the incapability 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.
However, the unrelenting worries over Indian demand scenario in the just about
to get underway-festive season are making futures market trader take it easy.
For the moment, the US retail sales were boosted by the
launch of iPhone 5 and registered 1 a rise of 1.1% in September. Equity markets
were further boosted 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.
Asian shares are trading higher on a steady note and some
buying has emerged in Gold as well. While this has helped it gain some ground
from its one-month low levels of $1728 per ounce, the fall in last two sessions
has done a considerable damage. The local MCX Gold futures broke under Rs 31000
per 10-gram mark yesterday and extended this drop further today. The metal
quotes at Rs 30869, down Rs 108 per 10 grams or 0.35% with 2% rise in the open
interest. The counter had dropped more than Rs 300 yesterday.
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