Expect precious metals to trade on a positive note: Angel

Gold: Spot gold prices traded on a bearish note and settled more than 1 percent lower in yesterday’s trading session owing to strength in the Dollar Index(DX). The yellow metal touched an intra-day low of $1548.40/oz and closed at $1551.3/oz in yesterday’s session. On the MCX, Gold August contract also settled 1.2 percent lower and closed at Rs.29652/10 gm after touching a low of Rs.29,630/10 gm on Thursday. Additionally, appreciation in the Indian Rupee also added downside pressure in the gold prices.

Silver: Taking cues from fall in the gold prices and mixed sentiments in the base metals prices coupled with stronger DX, Spot silver also declined by more than 2 percent in yesterday’s trading session. Global growth sentiments being dull along with no positive decision taken yet to resolve the Euro Zone crisis also acted as a negative factor for the white metal. The white metal touched an intra-day low of $26.11/oz and closed at $26.3/oz yesterday. On the MCX, Silver July contract declined 1.9 percent and closed at Rs.51,756/kg in yesterday’s trading session.

Outlook: In today’ session, we expect precious metals to trade on a positive note on account of rise in risk appetite in the global markets coupled with weakness in the DX. Additionally, expectations of positive economic data from the US in the evening session will also help upside in prices. On the MCX, sharp upside in the prices would be capped on account of appreciation in the Indian Rupee.

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