Expect gold, silver to trade lower today: Angel Commodities

Angel Commodities' report on bullion:

Gold
Spot gold prices gained declined 1.2 percent in yesterday's trading session on the back of rise in risk appetite in the global markets which led to fall in safe haven appeal for the commodity. The yellow metal touched an intra-day low of $1360.54/oz and closed at $1367.80/oz in yesterday's trading session.

In the Indian markets, prices ended on a positive note, increasing 0.4 percent on account of sharp depreciation in the Rupee. The commodity closed at Rs.27967/10 gms after touching an intra-day high of Rs. 28119/10 gms on Tuesday.

Silver
Taking cues from fall in gold prices along with downside in the base metals group, Spot silver prices fell 0.9 percent yesterday. Further, unfavourable economic data from US exerted downside pressure on the prices. The white metal touched an intra-day low of $21.49/oz and closed at $21.60/oz in yesterday's trade.

On the domestic front, prices gained 1 percent as a result of depreciation in the Rupee and closed at Rs.44,041/kg after touching an intra-day high of Rs.44,240/kg on Tuesday.

Outlook
In today's trade, we expect precious metals to trade lower on the back of uncertainty over the Fed regarding its stimulus pullback. Despite upbeat markets in morning trade, the Fed factor will play an important role for precious metals today as this has been the major factor that drove gold prices higher after the global financial crisis.

But towards the evening session, prices expected to bounce back as any announcement by Fed indicating a pullback at a later date will assure the flow of funds in the global markets in the near-term. Depreciation in the Rupee will prevent sharp fall in prices on the MCX.

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