Market Pearl

Silver decline all most 2% today, silver may decline more for the level of 56000. Commodities fall because of stronger doller, US doller impact clearly seems on commodity. Both bullion metals gols & Silver also down with all commodities. 

After trading lower with cuts of anywhere between one to two percent during most part of the day, base metal prices recovered in late hours to end with marginal losses. Base metals will trade on bullish trend except lead & zinc Nickel stocks on London metal Exchange witnessed draw-downs of 486 tonnes as against decline of 552 tonnes on the previous day, we expect nickel will trade on high on tomorrow trading. Base metals slightly move up at the end of the trading.

Gold price is expected to average $1875/oz in Q4, 2011 as the physical gold demand continues to cushion prices before investment demand takes off. Even though the volumes have softened, gold bar premiums in Asia is pretty high, indicating the strong demand for physical gold. The G-20 nations asked Europe to formulate a plan to resolve the debt crisis within October 23. And this looks unlikely since many key issues are yet to be fully defined. According to Barclays Speech Gold seems to bearish for tomorrow, session. We expect that gold will trade tomorrow 26350 or near by 26250.

MCX, Gold December contract declined around 0.5 percent and touched an intra-day low of Rs26, 620/10 gms yesterday, But it was on 26750+ in today trading session. While Silver Spot silver dropped by almost 2.5 percent on Thursday, taking cues from fall in gold prices along with dollar strength, silver currently trading in consolidate phase it may move for the level of 580000+ after diwali.

Silver rose by 35 on MCX, Comex December futures have already surged close to 4% on follow-through buying and as an extension of rebound seen on Wednesday trade. Silver & Gold both bullion traded well along with all base metals.