Bullion snaps two-day losing streak

Bullion prices snapped its 2-day losing streak and moved up in the European markets today owing to bargain hunting at lower levels, dealers said.

At 5:30PM, spot prices in over-the-counter markets were offered at $625.60-$626.10 an ounce. However, front month bullion contracts on MCX were down as dealers built fresh short positions, they said.

At 5:30PM, the contract was at Rs 9,090 per 10 gm, down 0.17 per cent from close Thursday. Open interest was 11.50 tonne versus 11.34 tonne, indicating thatdealers built short positions.

MCX March silver was Rs 19,069 per 1 kg, down 0.72 per cent. Open interest rose to 10.42 tonne versus 10.05 tonne.

However, in rest of the session, bullion prices in both domestic and overseas markets are seen down due to lack of triggers.

"The upswing in the overseas prices is temporary," a Mumbai-based analyst said. Also, dealers are wary in taking any fresh positions in bullion, ahead of release of the US December non-farm payroll data, which would give fresh cues about the dollar outlook.

"Overall sentiment is very bearish and it is getting very little support from its traditional strength""crude oil," Karun Verma, analyst at Religare Commodities, said.

Thursday, crude oil prices fell 4 per cent owing to a rise in inventories and low demand due to mild winter in U.S., the largest consumer. Dealers and analysts said December non-farm payroll data would determine further cues for currency and precious metals.

According to market expectations, non-farm payroll data is seen rising to 115,000 versus 132,000 rise in November.

"We need to see how the data comes. There could be some volatility right before the data is released and depending on the data prices could move $1-$2 either ways," Verma said.

However, Verma said the data would help only day traders and long-term dealers are likely to play from the short side.