Bullion to trade positive on firm global market sentiments

Gold: Spot gold prices gained 0.4% due to upbeat global market sentiments and thereby rise in the risk appetite amongst the market participants tracking positive data from the US economy. This led to decline in the decline in demand for the US Dollar Index (DX). This in turn supported an upside in the gold prices.

The yellow metal touched an intra-day high of $1,774.70/oz and closed at $1,768.20/oz on Thursday. On the MCX, Gold October contract ended 0.4% lower on the back of appreciation in the Indian rupee. Gold prices on the MCX closed at Rs.31,321/10 gms on Thursday after touching an intra-day low of Rs. 31,283/ 10gms.

Silver: Spot silver prices gained 0.1% taking cues from strength in the spot gold prices along with bullishness in the base metals pack. Additionally, weakness in the DX also acted as a supportive factor for the upside in the silver prices.

The white metal touched an intra-day high of $34.33/oz and closed at $33.99/oz on Thursday. In the Indian markets, MCX silver prices fell 0.6% on the back of appreciation in the Indian rupee and closed at Rs. 61,778/kg after touching an intra-day high of Rs.61,731/kg on Thursday.

Outlook: In the intraday, we expect precious metals to trade on a positive note on the back of firm global market sentiments along with weakness in the DX. In the domestic markets appreciation in the Indian rupee will cap sharp gain in the precious metals on the MCX.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.