Gold, silver likely to trade lower today: Angel Broking

Angel Broking has come out with its report on Gold & Silver. According to the research firm Gold & silver is likely to trade lower today.

Gold: Despite rising concerns with respect to the European economies, gold prices came under yesterday, as strength in the dollar exerted downside pressure on the yellow metal prices. Spot Gold prices touched an intra-day low of $1657/oz and closed at the level of $1665/oz, losing more than 2.5 percent on Monday. But a weaker Rupee prevented sharp fall in gold prices in the domestic markets. As compared to the previous trade, the MCX Gold February contract closed around 1 percent lower at Rs28,847/10gm yesterday.

Silver: Silver prices dropped sharply by 2.7 percent on Monday, taking cues from decline in gold prices along with a stronger dollar. Additionally, silver being an industrial metal also took cues from downside in base metals. On the MCX, Silver March contract declined by 1.4 percent yesterday, as Rupee depreciation resisted further fall in silver on the domestic bourses and touched an intra-day low of Rs56,817/kg.

Outlook: Gold and silver prices are expected to trade lower today, taking cues from a stronger dollar and weak global market sentiments. Risk aversion has gripped global financial markets and poor risk appetite could affect upside.

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