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

Gold: Prices declined around 0.4 percent on Wednesday on account of strength in the US dollar index coupled with weak sentiments in the global markets due to unfavorable economic data from the Euro Zone and US. Additionally, fall in crude oil prices also affected the inflation-led demand for gold which further led downside in the yellow metal prices. Gold touched an intra-day low of $ 1646/oz and closed at $1652/oz yesterday. However, a weaker Rupee led gains in gold prices on the domestic bourses. MCX Gold June contract hit an intra-day high of Rs. 29,267/10 gms and ended its trading session at Rs. 29,193/10 gms on Wednesday.

Silver: Spot silver prices came under pressure on Wednesday and declined around 0.8 percent, on the back of fall in gold prices, strength in the US dollar index and downside in the base metal pack. Weak sentiments in the global markets also acted as a negative factor for white metal prices. Silver touched an intra-day low of $ 30.38/oz and closed at $ 30.63/oz yesterday. However, depreciation in the Rupee cushioned further decline on the Indian platform. MCX Silver July contract touched an intra-day low of Rs. 54,961/kg and closed at Rs. 55,147/kg yesterday.

Outlook: Escalating uncertainty over global economic growth due to unfavorable economic data from the Euro Zone, US and China will lead weak sentiments in the global markets today and on account of this the US dollar is expected to remain strong. Taking cues from this, we expect gold and silver to trade with a negative bias today. However, weakness in the Indian currency may resist sharp fall on the domestic bourses.

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