Expect further decline in Gold, Silver: Nirmal Bang

Nirmal Bang has come out with its report on Gold and Silver. According to the research firm, Precious metals prices are trading lower on COMEX today. Expect a further decline in the prices of precious metals on account of a strong dollar overseas. Selling on rise is recommended for the day.

Precious metals prices fell yesterday as a strong U.S. retail sales report boosted optimism about the U.S. economy and after prices failed for a second time to surpass $1,600 an ounce, prompting investors to reduce bullion positions.  Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange traded fund, stood at 1236.31 tonnes by Mar 12, down by 0.42 tonnes from the previous business day.  Holdings in the world's largest silver backed exchange-traded fund iShares Silver Trust stood at 10703.60 tonnes by Mar 12, up by 57.12 tonnes from the previous business day. 

The Shanghai Gold Exchange (SGE) will launch over-the-counter trading (OTC) for gold forward contracts on March 25, two sources said on Wednesday, as the bourse looks to expand its offerings and increase trading volumes.  A new report by the World Gold Council, "Central bank diversification strategies - rebalancing from the dollar and the euro", examines the growing trend of central banks' actively looking to diversify their reserve portfolios. Central banks are reducing allocations to US dollars and euros while increasing purchases of traditional assets such as gold and Japanese yen.

Fundamental outlook:

Precious metals prices are trading lower on COMEX today. We expect a further decline in the prices of precious metals on account of a strong dollar overseas. Selling on rise is recommended for the day.

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