Buy Gold, Silver on decline: Nirmal Bang

Nirmal Bang has come out with its reporton Gold and Silver. According to the research firm, precious metals prices are trading firm on COMEX today.  Do not expect any major fall in the prices of bullions on account of the ongoing loose monetary policy by US Fed. Buying at dips is recommended for the day.

Precious metals prices rose yesterday snapping a three-day losing streak, as renewed euro zone worries and hopes the Federal Reserve will continue its loose monetary policy triggered bullion buying.  Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange traded fund, stood at 1221.26 tonnes by Mar 27, remains unchanged from the previous business day. Holdings in the world's largest silver backed exchange-traded fund iShares Silver Trust stood at 10703.59 tonnes by Mar 27, up by 15.03 tonnes from the previous business day.

U.S. derivatives exchange CME Group Inc CME.O said on Wednesday it will make platinum, palladium and copper floortraded options accessible to its gold and silver option pits in a bid to boost floor trading volume in New York.  Turkey's central bank raised the amount of gold and forex that lenders have to provide to hold a portion of their required reserves in the commodity and in foreign exchange, a move which will boost the central bank's gold and forex reserves.

Fundamental outlook:

Precious metals prices are trading firm on COMEX today. We do not expect any major fall in the prices of bullions on account of the ongoing loose monetary policy by US Fed. Buying at dips is recommended for the day.

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