Spot gold, silver prices dropped steeply in Mumbai and Ahmedabad Thursday as overseas rally crashed with yellow’s metal losing up to 9 per cent in the last 48 hours. Gold in Mumbai tumbled by more than Rs 1,000, while silver nose-dived by Rs 3,000- 3,500.
Suresh Hundia of Bombay Bullion Association told gold in the short-term can see a correction up to Rs 24,800- 25,300 and further movement will be determined by global trend.
In Mumbai, 995- standard gold traded at Rs 26,260 and 999- pure traded at Rs 26,381. In Ahmedabad, 995-standard gold traded at Rs 25,780 and 999 at Rs 25,856. (Prices in per 10 gm)
Silver in Mumbai traded at Rs 61,610 and in Ahmedabad at Rs 60,196. (Prices in per kg).
Metal need in China suppliers, the globe's biggest consumer and creator is likely to be more than double over the next several years, removing a local extra and enhancing prices, said XinRen Metal Holdings Limited.
Sources told that consumption may increase up to 15 % per season over the next 10 decades down from 17 % to 20 % per season over the previous 10. As well as reducing supply growth, this should bring the China market close to balance.
Country's improving need for services for merchandise such as aluminum which may help decrease a international extra which is approximated by experts at 1.4 thousand plenty this season. He said that need from the transport and automobile businesses and facilities tasks are required to remain strong.
Primary aluminum production in China suppliers increased 78 % in the 5 decades to 2010 and may grow 15 % to about 19 thousand plenty this season. Result rose to a monthly record of 1.59 thousand plenty in May.
As written number of times in this order, any dip to purchasing chance and above 6000 do not try to shorter offer, and the other day distinct run up was seen, as a lead it made a higher 66490 and finally shut at 66252 with a huge gain weeks time to weeks time basis nearly 4500 level.
Now in this weeks time, overall trend is favorable and it is predicted that it will test 70000, thereafter new higher likely. As per the specialized data as long as hold 64000 in near term fluff move continue and dip to purchasing chance, advanced stage it will face level of resistance 68777 and 71303, lower stage support watch 61450-6000. Panic or increase do not open shorter offer without specialized stage, otherwise u will be in financial trouble.