Gold, Silver may trade lower on strength in US dollar:Angel
Angel Commodities has come out with its report on bullion. According to the research firm, US dollar may remain strong and gold and silver are expected to trade lower today.
Angel Commodities has come out with its report on bullion. According to the research firm, US dollar may remain strong and gold and silver are expected to trade lower today.
Gold: Escalating tensions over Euro Zone debt worries and rising political concerns in the region has led to spread the wave of risk aversion in the global markets. This exerted downside pressure on gold prices on the international markets and led gold to trade lower by almost 4 percent last week. Additionally, gold demand concerns from China which is the world’s second-largest consumer of gold and a stronger dollar also acted as a negative factor for prices. The yellow metal touched a low of $ 1573/oz and closed its trading session at $ 1579/oz last week. However, depreciation in the Indian Rupee cushioned further decline on the domestic bourses. MCX Gold June contract declined around 2.9 percent and touched a low of Rs. 28,281/10 gms in the last week.Silver: Strength in the US dollar index coupled with rise in risk aversion in the global markets due to worsening tensions in the Euro Zone exerted downside pressure on the spot silver prices last week. Silver being an industrial metal also took cues from downside in base metals pack. Spot silver declined sharply by 4.8 percent and touched a low of $ 28.43/oz last week. On the MCX, Silver July contract traded lower by 2.1 percent as further decline was cushioned due to a weaker Rupee and touched an intra-day low of Rs. 53,561/kg in the last week.Outlook: Escalating tensions over Euro Zone debt worries with Greece being the matter of concern will lead to rise in risk aversion in global markets. On account of this, we expect US dollar to remain strong and gold and silver to trade lower today. However, Rupee depreciation may cushion further decline on the MCX.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.To read the full report click on the attachment 
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