MCX Gold and MCX Silver Market
MCX Today - MCX silver price has broken through a downtrend channel line (blue) and is trading below Rs 50,000 on Thursday trade. Near month March contract is at Rs 49,422 as of 11:39 IST.
International silver prices are also trading lower. COMEX silver January contract is trading at $26.915, a decline of $0.277 as of 11:41 IST.
In the Chart below, Silver has broken steeply below the channel line, indicating that prices may crash severely. In such a situation, the first downside target would be the September low of around Rs 47500.
December's imports of MCX Gold bullion to India, which has no domestic gold mining output, will likely stand 50% below the level of December 2010. "Inflation is too high and buying is not very aggressive," says Prithviraj Kothari, president of the BBA, adding that gold needs to fall back to 25,000 rupees per 10 grams to "spur some buying interest" after rising more than 30% and hitting new records above Rs29,000 earlier this month.