GOLD SILVER TIPS

MCX Gold futures are expected to open on a negative note after the global prices fell under $1700 per ounce yesterday and comntinue to linger under the same mark in Asian trades today. The settlement of near month contracts on COMEX and MCX hit the futures hard in last few days and the prices fell to a a four week low in New York yesterday and currently trades at $1695 per ounce, almost unchanged on the day.

US stocks witnessed a late surge yesterday after media reports stated that a group of Republicans had signed a letter urging the exploration of “all options” on taxes and entitlement programs. However, untill a confirmation is delivered by the officials, these talks are unlikely to help lift the sentiments much.

Gold for February delivery, the most actively traded contract, fell $US25.30, or 1.5%, to settle at $US1,695,80 a troy ounce on the Comex division of the New York Mercantile Exchange, the lowest settlement since November 5. The thinly traded December contract closed at $US25.20, or 1.5%, lower at $US1,694.40 an ounce.

MCX Gold witnessed a heavy correction too as the MCX December series expired. The contract fell well under Rs 31000 per 10 gram levels and closed at Rs 31195 per 10 grams. The Benchmark February contract also shed Rs 167 per 10 grams or half a percent to end at Rs 31199 after testing lows of Rs 31136 during the session. The correction in early electronic moves has not been factored in the commodity so far and we could see the benchmark futures testing lows near Rs 31k in today's trade.