Commodity Outlook

Precious metals prices are trading little changed on COMEX today. We expect a further rise in
the prices of precious metals on account of a weaker US dollar overseas. Buying at dips is
recommended for the day.
Precious metals prices surged higher with gold surged 2 percent in heavy trading on Friday to a five-month high, and looked set to resume its years-long rally after Federal Reserve Chairman Ben Bernake's key speech raised hopes of a new round of monetary stimulus for the U.S. economy.


MCX Gold, October contract opened at Rs. 30,800. The contract reached an intraday high of Rs. 31,231 and intraday low of Rs. 30,656. The contract rose up by Rs. 369 or 1.20 percentage change.

MCX Silver September contract opened at Rs. 56865.The contract reached an intraday high of Rs. 58,517 and intraday low of Rs.  56,613. The contract rose up by Rs. 605 or 1.06 percentage change.

Holdings in the world's largest silver backed exchange-traded fund iShares Silver Trust stood at 9671.60 tonnes by Aug 31, down by 49.73 tonnes from the previous business day.

Hedge funds and money managers boosted their gold's net longs by 21,063 to 131,687 lots, and they also raised silver's net longs by 8,075 to 25,527 contracts last week.