According to Angel Commodities, gold and silver prices are expected to trade higher taking cues from international markets.
Angel Commodities' report on bullion
Spot gold prices traded negative last week as Greece's new offer on a reform package to avoid a default on its debts raised hopes that a tangible deal with international creditors was still possible, lifting global stock indexes, reducing investors' interest for assets perceived as safe such as gold and bonds.
Athens needs fresh funds to avoid defaulting on a $1.8 billion debt repayment to the International Monetary Fund on June 30. Prices declined for five consecutive sessions in a row as trader’s awaited news on Greece's negotiations with its international lenders to avoid default.
The prospect of the first U.S. interest rate rise from the Federal Reserve in nearly a decade acted as a negative factor. Prices declined for four consecutive sessions in a row as trader’s awaited news on Greece's negotiations with its international lenders to avoid default.
In the international markets, spot gold prices declined by 2.1 percent last week and closed at $1174.58/oz. On the MCX, gold prices declined by 2.06 percent last week and closed at Rs.26524/10 gms.
Last week, spot silver prices in the international markets traded lower in line with weakness in gold prices. Strengthening dollar also acted as a negative factor for oil prices.
Spot silver prices in the international markets declined by 1.93 percent and closed at $15.76/oz. On the MCX, silver prices declined by 1.94 percent and closed at Rs.35968/kg.
Greece’s uncertainty will continue to bother commodity markets as the nation has imposed capital controls and shut down banks as deal could not be reached with its creditors creating a wobbly situation.
On the MCX, gold and silver prices are expected to trade higher taking cues from international markets.
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