Vaccine hopes push gold below Rs 49,000 per 10 gram
Mumbai: Futures of gold, which were soaring well above the Rs 50,000 mark till sometime back amid the weak economic scenario, have now started to ease and have fallen below the Rs 49,000-mark amid optimism regarding vaccines for the novel Coronavirus.
The December contract of gold on the Multi Commodity Exchange (MCX) is currently trading at Rs 48,975 per 10 gram, lower by Rs 505 or 1.02 per cent from its previous close.
Similarly, domestic futures of silver also continued its downward trend on Tuesday and its December contract on the MCX is currently at Rs 59,825 per kg, lower by Rs 700 or 1.16 per cent from its previous close.
Anuj Gupta, DVP for Commodities and Currencies Research at Angel Broking Ltd said that noted that the decline has been on the back of recovery in global equity market and development on the front of corona virus vaccine. Gold ETF holding is also falling more than a million ounce in this month, he said.
“The trend of gold and silver now become down and expectation of safe haven demand of this asset may fade out. As for today traders can go for sell in gold at Rs 49,800 levels with the stop loss of Rs 50,100 levels for the target of 49,000 levels,” Gupta said.
In the international market, gold may test $1780 to $1800 per ounce levels soon, according to him.
He was of the view that traders can also go for sell in Silver at Rs 61,000 levels, with the stop loss of 61,800 levels and for the target of 59,800 levels.
Optimism has been fueled in the global markets after the recent series of positive announcements on the vaccine front.
AstraZeneca on Monday announced Monday that positive high-level results from an interim analysis of clinical trials of the Covid-19 vaccine candidate in the UK and Brazil showed it was highly effective in preventing the disease, the primary endpoint, and no hospitalisations or severe cases of the disease were reported in participants receiving the vaccine.
One dosing regimen showed vaccine efficacy of 90 per cent when ‘AZD1222’ was given as a half dose, followed by a full dose at least one month apart, and another dosing regimen showed 62 per cent efficacy when given as two full doses at least one month apart. The combined analysis from both dosing regimens resulted in an average efficacy of 70 per cent.
All results were statistically significant. More data will continue to accumulate and additional analysis will be conducted, refining the efficacy reading and establishing the duration of protection.
Earlier Pfizer and Moderna had reported their vaccines of being highly effecting.
Markets surge to lifetime highs
Mumbai: Equity benchmarks Sensex and Nifty rallied to fresh lifetime highs on Tuesday following heavy buying in banking, financial, realty and auto counters amid persistent foreign capital inflows.
A strengthening rupee also boosted market sentiments, traders said. After scaling a record intra-day high of 44,601.63, the 30-share BSE Sensex ended 445.87 points or 1.01 per cent higher at a record 44,523.02. Similarly, the broader NSE Nifty rose 128.70 points or 1 per cent to close above the 13,000-mark for the first time at 13,055.15.
Axis Bank was the top gainer in the Sensex pack, surging around 4 per cent, followed by M&M, HDFC Bank, ITC, SBI, ICICI Bank, Maruti, Kotak Bank and Sun Pharma. On the other hand, HDFC, Titan, Nestle India, Bharti Airtel, ONGC and Infosys were among the laggards.
Sector-wise, BSE bankex, auto and finance indices rose up to 2.37 per cent. Foreign institutional investors remained net buyers in the capital market as they purchased shares worth Rs 4,738.44 crore on Monday, according to provisional exchange data.
The rupee appreciated 10 paise to close at 74.01 against the US dollar. Elsewhere in Asia, bourses in Hong Kong, Tokyo and Seoul ended with significant gains, while Shanghai closed in the red. Stock exchanges in Europe were trading on a mixed note in early deals. Meanwhile, Brent crude futures, the global oil benchmark, rose 0.85 per cent to $46.45 per barrel.
Now you can get handpicked stories from Telangana Today on Telegram everyday. Click the link to subscribe.
Click to follow Telangana Today Facebook page and Twitter .
