Expect precious metals to trade on a negative note: Angel

Gold: Spot gold prices traded on mixed note and settled 0.8 percent higher in yesterday’s session after US Federal Reserve policy makers said that further stimulus package is likely only if the economy of the US shows signs of worsening. However, strength in the Dollar Index (DX) resisted Spot gold prices from trading higher. The yellow metal touched a high of $1582.80/oz and closed at $1576.29/oz in yesterday’s trading session. On the MCX, Gold August contract however, declined 0.6 percent and closed at Rs.29,265/10 gms after touching a low of Rs 29,225/10 gms on Wednesday. However, depreciation in the Indian Rupee cushioned prices from falling further in the domestic market.

Silver: Spot Silver prices increased 1.3 percent tracking firmness in the gold prices along with strength in the base metals complex on Wednesday. However, strength in the DX controlled prices from trading higher. The white metal prices touched an intra-day high of $27.25/oz and closed at $27.1/oz in yesterday’s trading session. On the domestic front, prices surged by 0.2 percent and closed at Rs.52,735/kg after touching a high of Rs.52,912/kg in yesterday’s trading session.

Outlook: From the intra-day perspective, we expect precious metals to trade on a negative note on the back of rise in risk aversion in the global markets coupled with strength in the DX. However, depreciation in the Indian Rupee will restrict sharp fall in the prices.

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