Crude prices on Monday intraday jumped a massive 9% after the news broke out that Pfizer's vaccine trial against Covid 19 is almost 90% effective in preventing the outbreak. As per a leading dailies report, on Friday at the end of session top 10 clientele were cumulatively short by 2825 contracts against their counterparts who were long 1743 contracts.
And on short covering, oil prices surged to Rs. 3025 per barrel. "If big traders were cumulatively short , there could be margin calls on them the next day if the rally sustained," said Naveen Mathur , associate director Anand Rathi Share and Stock Brokers.
Also, within minutes of the vaccine trial news, gold futures on MCX plummeted by as much as Rs. 2815 to day's low of Rs. 49705 (ex-GST) per 10 gm. And in the anticipation of further price correction in the precious yellow metal gold on risk-on sentiment, jewellers expect good buying in physical gold.
Also, if prices continue to decline with Dhanteras, Diwali around the corner, there shall be a spurt in demand in gold.