MCX Gold Slips Below Rs 28500

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MCX Gold Slips Below Rs 28500

GOLD-TRIFIDRESEARCH((14:46, 15 Oct 2013) Hours IST)

Domestic gold futures in MCX slipped below Rs 28500 per 10 grams in the mid electronic trades today hurt by low demand for the safe haven assets in the international markets. The yellow metal's safe-haven appeal was dampened as investors were encouraged by signs of progress by U.S. lawmakers to end the standoff in Washington ahead of Thursday's deadline. Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal, fuelling hopes that a compromise can be reached.

If an agreement to raise the federal borrowing limit is not struck ahead of Thursday's deadline, the U.S. will face an unprecedented sovereign debt default. However, any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.

MCX December gold futures plunged below the Rs 28500 mark giving some bearish signals. The metal may fall towards Rs 28100 to Rs 27500 levels in the near term giving good opportunity top buy.Gold futures for December delivery floundered by more than $20 at $1,255 a troy ounce on the Comex division of the New York Mercantile Exchange. The counter tumbled to as low as $ 1254 an ounce. The December contract ended 0.66% higher on Monday to settle at $1,276.60 a troy ounce.

COMEX Silver for December delivery broke below $21 an ounce falling more than 1%. In the domestic markets the December delivery silver futures plunged near the Rs 46000 levels down more than Rs 1000 per kg.

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