Precious metals may trade with a positive bias today: Angel

Gold: Spot gold prices declined around 2 percent in the last week. A weaker DX cushioned further fall in gold prices. The yellow metal touched a low of $1561/oz during the week and closed at $1593.84/oz in the last trading session. On the MCX Gold August contract declined by 0.6 percent on account of appreciation in the Indian Rupee and closed at Rs.29,580/10 gm on Friday after touching a low of Rs.29,106/10 gm during the last week. Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, increased around 0.1 percent to 1,274.78 tonnes on 8th June 2012 from the previous level of 1,273.88 tonnes on 1st June 2012.

Silver: Taking cues from fall in gold prices coupled with mixed performance in base metals, Spot silver also declined by 0.6 percent in last week. However, weakness in the DX restricted further downside in the silver prices. The white metal touched a low of $27.93/oz during the week and closed at $28.47/oz on Friday. On the domestic front, prices declined by 0.3 percent on the back of appreciation in the Rupee and closed at Rs.54,335/kg on Friday. On a weekly basis, holdings in the iShares Silver Trust, the world's largest silver-backed exchange-traded fund, increased around 0.3 percent to 9,669.08 tonnes on 8th June 2012 from the previous level of 9,643.17 tonnes on 1st June 2012.

Outlook: From the intra-day perspective, we expect precious metals to trade with a positive bias on the back of weakness in the DX coupled with upbeat global market sentiment. In the Indian markets, appreciation in the Rupee will cap further gains in prices.

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