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May 16, 2012, 01.15 PM IST | Source: Moneycontrol.com

Gold, Silver may trade with a negative bias today: Angel

Angel Commodities has come out with its report on bullion. According to the research firm, Gold and silver are expected to trade with a negative bias today on account of strength in the US dollar index.

Angel Commodities has come out with its report on bullion. According to the research firm, Gold and Silver are expected to trade with a negative bias today on account of strength in the US dollar index.

Gold: Prices on the international markets declined almost 1 percent and touched a four and a half month low of $1541.10/oz on Tuesday. Rising uncertainty with respect to global economic growth due to escalating tensions over Europe’s debt crisis especially with Greece being the matter of concerns and weak sentiments in the markets acted as a negative factor for gold prices. Additionally, strength in the US dollar index also exerted further downside pressure on the yellow metal prices. On the MCX, Gold June contract witnessed a fall of around 0.4 percent and touched an intra-day low of Rs.27,992/10 gms on Tuesday.

Silver: Spot silver prices dropped sharply by 1.5 percent in yesterday’s trading session on account of strength in the US dollar index and weak sentiments in the global markets due to Euro Zone debt worries. Moreover, silver being an industrial metal also take cues from downside in base metals complex yesterday. Silver hit an intra-day low of $27.56/oz and ended its trading session at $27.70/oz on Tuesday. MCX Silver July contract declined by 1.3 percent and touched an intra-day low of Rs. 52,820/kg yesterday.

Outlook: Gold and silver are expected to trade with a negative bias today on account of strength in the US dollar index, as a stronger dollar makes dollar-denominated commodities look expensive for holders of other currencies. In addition to this, risk aversion in the global markets due to Euro Zone debt worries will also act as a negative factor. Silver will also take cues from downside in base metals pack. However, a weaker Rupee may cushion sharp fall on the Indian platform.

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