Silver declined by Rs 25 per kg in the opening session. Finally, it ended positive at Rs 45,485, improving by Rs five from its last close on scattered demand from local dealers.
Similarly, standard and pure gold were lower by Rs 25 per ten gm each in the opening trade. At close, standard and pure gold paled by Rs 30 per ten gm each from its yesterday's close on sluggish demand.
Standard and pure gold ended in red at Rs 20,450 and Rs 20,550 per ten gm respectivly.
In London market, the same trend was seen as Silver declined at USD 29.29 an ounce, while gold rose to USD 1,389.00 an ounce.
Following were the closing rates of spot Silver and Gold Silver (per kg).999 grade Rs 45,485 (45,480) Gold 99.5 standard mint Rs 20,450 (20,480) Gold 99.9 pure gold Rs 20,550 (20,580)
MCX Gold is expected to start on a weak note as the prices factor in a massive slide in the COMEX futures in the overnight trades. The session turned sour for Gold in the New York trades as traders eyed the annual activity of big commodity indices getting reweighed with the percentage of the commodities making up the basket tracked by each particular index according to its price performance in the last year. The market participants also eyed a failure for the COMEX futures to hold above $1420 per ounce and a sharp sell off was seen in New York once the $1400 per ounce levels were overcome. The US dollar rose after testing levels near 1.3400 against the Euro in London and managed to keep these gains after US factory orders jumped 0.7% in November to $423.9 billion well ahead of the forecasts. Orders for October were also revised to show improvement.
COMEX Gold fell throughout most of world trade and ended near its late session low of $1374.80 with a loss of 3.09%. Silver also accelerated overnight losses in New York and ended near its early afternoon low of $29.33 with a loss of 4.89%. The prices have recovered in Asia with the COMEX futures quoting at $1384 up $5.20 per ounce as some bargain hunting emerged. However now that the prices are down under $1400 traders could eye the recent slide in the gold holdings by the ETFs. Holdings in the SPDR Gold Trust the world s largest gold backed exchange traded fund fell to a seven month low of 1276.472 tonnes by Jan 4 indicating a lack of demand as prices shot up nearly 26% in the last year. MCX Gold futures for February slumped once the Rs. 20700 levels gave up in the evening trades and closed at Rs. 20449 down Rs. 339 or 1.63% with a massive increase in the open interest. The counter could test lows near Rs. 20400 per 10