Buy precious metals on dip: Nirmal Bang

Nirmal Bang has come out with its report on precious metals. The research firm, do not expect any major fall in prices of bullions on account of accommodative monetary policy by the Fed and higher reserves by Russia. One can buy bullion on decline for the day.

Precious metals prices fell in heavy trade yesterday as a bailout deal to avert a collapse of Cyprus' banking system and possible economic chaos in the euro zone decreased the metal's safe-haven appeal.

Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange traded fund, stood at 1221.26 tonnes by Mar 25, remains unchanged from the previous business day.

Holdings in the world's largest silver backed exchange-traded fund iShares Silver Trust stood at 10688.56 tonnes by Mar 25, remains unchanged from the previous business day.

Russia, Kazakhstan and Turkey increased their official gold reserves in February, data from the International Monetary Fund showed on Tuesday.

Russia added 6.998 tonnes of gold to its official reserve, which stood at 976.952 tonnes by the end of February, reinforcing its ranking as the world's eighth largest gold holder.

Precious metals prices are trading a tad lower on COMEX today. We do not expect any major fall in prices of bullions on account of accommodative monetary policy by the Fed and higher reserves by Russia. Buying at dips is recommended for the day.

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