Commodity Tips Advisory

MCX Gold futures dropped under Rs 32400 per 10 grams levels amid profit selling in global futures as five-week highs above $1750 led to a correction. The yellow metal traded in a thin manner in Asia amid a rather mixed undertone in equities. A reversal in the Indian Rupee, which came off its two and half month lows against the US dollar also led to some pressure on local futures. The COMEX Gold futures are trading at $1746.40, down $3.20 per ounce on the day.

The Euro jumped to 1.3000 levels against the US dollar after reports that Greece's creditors reached a long-awaited deal to pave the way for Athens to receive fresh financial aid yesterday. The yellow metal, however, failed to hold on above $1750 for long today and dropped soon as European equities came off their early highs.

In economic news, the UK economy grew by 1% in the third quarter, unchanged from a preliminary estimate, revised data showed today. The UK Office for National Statistics (ONS) said that gross domestic product grew at a seasonally adjusted rate of 1% during the third quarter, and unchanged from an initial estimate. On a positive note, it was the biggest rise since the third quarter of 2007. The economy had contracted by 0.4% in the three months to June.

The metal could witness some buying support in the US trading session given that benign undertone in the dollar. The local Gold had surged to fresh all time highs of 32464 yesterday before receding and failed to hold on to these levels yet again today. The futures dropped from highs of Rs 32453 per 10 grams today and currently trade at Rs 32344, down Rs 15 per 10 grams on the day. The Rupee trades at 55.45, up around 10 paise on the day against the US dollar.

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