Bullion may see volatility on global economic data: Karvy
The economic data expected from Germany, UK and the euro-zone might create a slight volatility in the bullion prices. So, for the day make only intraday trades on bullion, recommends Karvy.
Karvy's report on bullion
Testimony from the US Fed chairman nominee Janet Yellen stated that, unless the US economy recovered, there would not be any tapering of its stimulus programme. This made US equities end on a positive note and so, we are seeing all the Asian markets trading in the green, barring China due its local influence. The emerging nation’s currencies are also appreciating against the US dollar. The comment by Janet Yellen has also impacted the bullion sector.
Gold bullion, which was trading below $1270 at the futures market yesterday, is now seen trading higher by $15 at $1285. Likewise, silver too has advanced by 1.65 percent and is hovering near $20.78. We believe that the market should continue to follow the expectations raised by the comment unless there any fresh trigger pops up.
Therefore, gold and possibly silver might continue to gain. However, since there was already a gain of over 1 percent, we believe that bullion may remain subdued or gain marginally during the day. The economic data expected from Germany, UK and the euro-zone might also create a slight volatility in the prices. So, for the day, we recommend making only intraday trades on bullion.
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