Silver turnover surges at MCX

Kolkata: Multi Commodity Exchange of India (MCX) has posted a record volume in silver options of over 93 tonnes worth Rs 652 crore and an open interest of 146 tonne as of Wednesday, according to numbers obtained from the exchange's website.

The average daily turnover (ADT) volume in silver so far in the current quarter has risen past Rs 15,000 crore from below Rs 4,000 crore a year ago. Similarly, ADT volume of gold has also topped Rs 10,000 crore in the period between July 1 to August 6 compared with Rs 7,980 crore in the same period last year.

The rally in gold and silver continued on Thursday for the seventh consecutive session with the yellow metal scaling a peak of Rs 56,191 per 10 gm and silver at a record Rs 77,949 rupees per 1 kg in futures market.

However, there was some profit booking in the market with the most-active September silver on MCX trading at Rs 76,000 a kg and October gold at Rs 55,825 per 10 gm.

“We continue to remain bullish on gold. However, it is in the overbought zone currently and a decent correction is likely any time. On MCX, we expect prices to correct towards Rs 52,000-53,000 per 10 gm in the near term before heading back to Rs 58,000-60,000 per 10 gm during peak festival season of Dusserah and Diwali," said said Kunal Shah, research head of Nirmal Bang.

On COMEX also, gold futures have hit a record high of $2,072 an ounce before profit booking dragged the it down to $2,055. per ounce.

“We expect to adopt cautious approach in gold as a reasonable correction is likely in prices before it hits the near term target of $2,100 an ounce,” said Anuj Gupta of Angel Broking.