Precious metals may trade on a positive note today: Angel

Angel Commodities has come out with its report on bullion. According to the research firm, precious metals are expected to trade on a positive note on the back of ease in risk aversion in the global markets coupled with expectations of stimulus from global policymakers to ease European debt concerns.

Gold: Spot gold prices declined by 0.6 percent yesterday on the back of rise in risk aversion in the global markets. However, further downfall in prices was cushioned on account of weakness in the dollar index. The yellow metal touched an intra-day low of $1609/oz and closed at $1616/oz in yesterday’s trading session. On the MCX Gold August contract prices declined by 0.2 percent and closed at Rs.29,668/10 gms on Monday. However, further downside in gold prices was restricted on account on depreciation in the Indian Rupee.

Silver: Taking cues from fall in gold prices, Spot silver prices declined by more than 1.5 percent in yesterday’s trading session. However, further downfall in silver prices was prevented on the back of weakness in DX. The white metal touched an intra-day low of $27.96/oz and closed at $28.20/oz yesterday. On the domestic front, prices declined by more than 1 percent and closed at Rs.53,839/kg after touching an intra-day low of Rs.53,759/kg on Monday. However, depreciation in the Rupee cushioned further fall in silver prices.

Outlook: From an intra-day perspective, we expect precious metals to trade on a positive note on the back of ease in risk aversion in the global markets coupled with expectations of stimulus from global policymakers to ease European debt concerns. Additionally, weakness in the DX will help upside in prices. However, in the domestic markets appreciation in the Rupee will cap sharp upside in prices.

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