Spot prices of Gold declined around 0.6 percent on account of mixed economic data from the US economy along with strength in the Dollar Index (DX).Expectations of further stimulus measures by the Federal Reserve policy makers however cushioned sharp fall in the prices.
The yellow metal touched an intra-day low of $1567.34/oz and closed at $1572.3/oz in yesterday’s trading session. On the MCX, Gold August contract traced the Spot prices and declined by 0.4 percent and closed at Rs.29,159/10 gms after touching an intra-day low of Rs.29,142/10 gms on Wednesday. Depreciation in the Indian Rupee however, cushioned sharp fall in the prices.
Spot Silver prices declined 0.3 percent taking cues from fall in the gold prices in yesterday’s session. Additionally strength in DX also pressurised Silver prices on the downside.
The white metal prices touched an intra-day low of $26.88/oz and closed at $27.2/oz on Wednesday. On the domestic front, prices fell 0.3 percent and closed at Rs.52,706/kg after touching an intra-day low of Rs.52,535/kg in yesterday’s trading session. However, depreciation in the Indian Rupee cushioned sharp fall in the MCX Silver prices.
From the intraday perspective, we expect precious metals to trade positive bias owing to upbeat global market sentiments along with weakness in the DX. However, in the Indian markets precious metals are expected to remain bearish due to appreciation in the Indian Rupee.