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Precious Metals ignored at record highs

Gold and silver prices in the domestic spot market traded under pressure as traders were seen ignorant to buy the precious metals at its record highs on Friday. 

Quick gains and lower investment appeal drove the investors to shift from bullion market to surging domestic equities, said experts.

Gold of 99.5% and 99.5% purity fell by Rs 100 each to Rs 19,400 and Rs 19,300 per ten grams, respectively. Sovereigns held steady at Rs 15,400 per piece of eight grams in restricted buying.

In line with the weakening trend, silver ready dropped by Rs 130 to Rs 33,570 a kg and weekly—based delivery by Rs 240 to Rs 32,980 a kg. Silver coins followed suit and lost Rs 200 to Rs 35,300 for buying and Rs 35,400 for selling of 100 pieces.

Gold kept its upside move for the 12 consecutive day largely driven by weakness in the U.S. dollar and a growing belief among investors that policymakers will do more to promote economic growth.

Having hit its 11th record high in 13 trading sessions, gold was on course for a 5% gain for the month and the likelihood the Federal Reserve will pump more cash into the financial system to support the economy.

Two measures of regional business activity beat expectations and a drop in weekly jobless claims boosted the dollar, which in turn weighed on gold.

Speculation in markets is building for the Fed, the Bank of England and the Bank of Japan to limit rises in interest rates, which would prove a positive sign for gold, which tends to benefit in an environment of loose monetary policy. 

MCX Copper moves further higher

Copper prices moved further higher in the domestic futures market as the global market shown positive signals on Friday.

MCX Copper February contract gained Rs 1.15 or 0.32 percent to Rs 365.15 per kg with a business turnover of 23 lots. November contract also edged up by Re one or 0.28 percent to Rs 363.15 per kg with a business volume of 16 lots.

Copper ended slightly lower consolidating just below the previous session's two-year peak, with a batch of better-than-expected data limiting losses and offering hope for improved economic activity into year's end.

Copper benefiting from improved fundamental backdrop reflected in declining inventories and recent bouts of weakness in the U.S. dollar. LME copper warehouse stocks fell by 950 tonnes to 374,150 tonnes, having fallen from 6-1/2 year highs at 555,075 tonnes in mid February.