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Dec 05, 2012, 12.23 PM IST | Source: Moneycontrol.com

Gold, Silver may trade on bearish note: Angel Commodities

Angel Commodities has come out with its report on Gold and Silver. The research firm expect precious metals to trade on a bearish note as worries over fiscal cliff issue in US still remains unresolved along with strength in the Dollar index.

Angel Commodities has come out with its report on Gold and Silver.  The research firm expect precious metals to trade on a bearish note as worries over fiscal cliff issue in US still remains unresolved along with strength in the Dollar index.

Gold:

Spot gold prices declined 1.1 percent in yesterday’s session on persistent worries amongst global participants as to how the US law makers would solve the fiscal cliff issue in US. Discussions over the same were dented yesterday when President Barack Obama rejected the Republicans plan and proposed that any negotiations must include rise in the income tax on the wealthiest. However, weakness in the DX cushioned sharp fall in the prices. The yellow metal touched an intra-day low of $1,690.64/oz and closed at $1696.7 on Tuesday. On the MCX, Gold December contract ended 1 percent lower taking cues from bearishness in the spot gold prices along with appreciation in the Indian rupee. Gold prices on the MCX closed at Rs.30,958/10 gms on Tuesday after touching an intra-day low of Rs. 30,945/ 10gms. 

Silver:

Spot silver fell 2.1 percent in yesterday’s session taking cues from weakness in the spot gold prices. Doubts amongst global participants as to how the US law makers would solve the fiscal cliff issue is creating bearish market sentiments. Strength in the base metals pack along with weakness in the DX however, cushioned sharp fall in the spot silver prices. The white metal touched an intra-day low of $32.9/oz and closed at $32.65 per oz on Tuesday. In the Indian markets, MCX silver prices declined 1.8 percent and closed at Rs. 60,671/kg on Tuesday and touched an intra-day low Rs. 60,433/kg. MCX silver prices fell on the back of appreciation in the Indian rupee and traced bearishness in the spot silver prices. 

Outlook:

In today’s session we expect precious metals to trade on a bearish note as worries over fiscal cliff issue in US still remains unresolved along with strength in the DX. Fiscal cliff issue is making investors follow cautious approach. In the domestic markets appreciation in the Indian rupee is expected to exert downside pressure on the precious metals on the MCX.

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READ MORE ON  Angel Commodities, Gold, Silver

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