Expect further rise in Gold, Silver prices: Nirmal Bang

Nirmal Bang has come out with its report on Gold, Silver. According to the research firm, precious metals prices are trading little changed on COMEX today. Expect a further rise in the prices of precious metals on account of a weak dollar and upbeat Chinese economic data.

Precious metals prices climbed to one month high yesterday as a weak reading on mid-Atlantic manufacturing underlined the view that U.S. growth may not be robust enough for the Federal Reserve to pull back on its accommodative monetary policy.  Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange traded fund, stood at 1332.31 tonnes by Jan 17, down by 1.81 tonnes from the previous business day. Holdings in the world's largest silver backed exchange-traded fund iShares Silver Trust stood at 10734.99 tonnes by Jan 17, remains unchanged from the previous business day.

Persistent concerns over the health of the U.S. economy and pressure on the dollar will send gold prices to a record average high this year, Thomson Reuters GFMS said on Wednesday, before the metal's 12- year bull run tops out late in the year. India's gold imports could drop by up to a quarter this year if, as expected, the government again raises the duty on the precious metal, the chairman of the All India Gems and Jewellery Trade Federation said on Thursday.

Fundamental Outlook:

Precious metals prices are trading little changed on COMEX today. We expect a further rise in the prices of precious metals on account of a weak dollar and upbeat Chinese economic data. Silver in particular looks good for the day.

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