Expect Gold, Silver to trade with a negative bias: Angel

Gold: Gold prices declined almost 2 percent in yesterday’s trading session as the minutes of the US Federal Reserve's last policy meeting indicated that Fed will not go for further monetary stimulus unless the US economic growth weakens to less than 2 percent. This led to strength in the US dollar index and also resulted weak sentiments in the global markets. This exerted downside pressure on gold prices and it touched an intra-day low of $ 1638.74/oz on Tuesday. On the MCX, Gold June contract traded slightly higher by 0.1 percent and touched an intra-day high of Rs. 28,044/10 gms on Tuesday.

Silver: Strength in the US dollar index coupled with choppy sentiments in the global markets exerted downside pressure on silver prices on the international markets on Tuesday. Additionally, the white metal prices also took cues from fall in gold prices and mixed performance in base metals pack. Spot silver prices touched an intra-day low of $32.45/oz and closed at $32.62/oz yesterday. MCX Silver May contract ended on a flat note and touched an intra-day low of Rs. 57,103/kg on Tuesday.

Outlook: We expect gold and silver to trade with a negative bias today taking cues from a stronger dollar index and weak sentiments in the global markets. Silver will also take cues from downside in base metals too. However, depreciation in the Indian Rupee will cushion sharp decline on the domestic bourses.

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