Strong global cues, weak dollar index to boost Bullions

Gold: Spot gold prices extended gains of the previous day by around 0.8 percent tracking upbeat global market sentiments after ECB Chairman Mario Draghi stated that all possible steps might be taken to save the Euro. Additionally, weakness in the US Dollar Index (DX) also supported an upside in the gold prices. The yellow metal touched an intra-day high of $1,621.41/oz and settled at $1,615.6/oz on Thursday. In the domestic markets MCX gold prices traded on mixed note and settled marginally down by 0.1 percent due to appreciation in the Indian Rupee. Prices touched an intraday low of Rs.29,773/10gm and closed at Rs.29,793/10gm on Thursday.

Silver: Positive global market sentiments along with rise in the gold prices led spot prices of silver to increase 0.8 percent in yesterday’s session. Further, weakness in the DX also supported an upside in the prices. The white metal touched an intraday high of $27.54/oz and closed at $27.52/oz on Thursday. In the Indian markets however, silver prices declined 0.4 percent due to appreciation in the Indian Rupee. Silver prices in MCX settled at Rs.53,217/kg after touching a high of Rs.53,150/kg in yesterday’s session.

Outlook: Upbeat global market sentiments along with weakness in the DX are likely to keep precious metals higher in today’s session. However, appreciation in the Indian rupee will cap sharp gains in precious metals in the domestic markets.

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