Precious metals to trade rangebound with bearish note:Angel

Gold: Spot prices of Gold gained around 0.5 percent tracking upbeat global market sentiments all through the day along with weakness in the Dollar Index (DX). Expectations of further stimulus measures by the Federal Reserve policy makers also acted as a supportive factor of the gold prices. The yellow metal touched an intra-day high of $1591.50/oz and closed at $1580.6/oz in yesterday’s trading session. In the domestic market on the MCX, Gold prices traded rangebound throughout the day and settled around same levels as that of Wednesday. MCX, Gold August contract closed at Rs.29,158/10 gms after touching an intraday high of Rs.29,269/10 gms on Thursday. However, appreciation in the Indian Rupee restricted sharp upside in prices.

Silver: Firmness in the gold prices along with strength in the base metals pack led Spot Silver prices to increase 0.3 percent in yesterday’s session.
Apart from this weakness in DX also supported upside in the white metal. The white metal prices touched an intra-day high of $27.6/oz and closed at $27.2/oz on Thursday. However, in the domestic markets, prices fell 0.1 percent and closed at Rs.52,670/kg after touching an intra-day low of Rs.52,609/kg in yesterday’s trading session. Appreciation in the Indian Rupee also pressurised MCX Silver prices on the downside in yesterday’s ession.

Outlook: From the intraday perspective, we expect precious metals to trade rangebound with bearish note due to strength in the DX along with mixed sentiments in the global markets. However, depreciation in the Indian markets will cushion sharp fall in the precious metals on MCX.

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