Gold, Silver likely to trade on negative side: Angel

Angel Commodities`s research report on bullion

Gold
Spot gold prices decreased by 0.5 percent in the yesterday’s trading session as the US Federal Reserve Chairman Bernanke hinted at reducing a bond buying programme. Further, strength in DX kept prices under pressure. Additionally, SPDR gold trust holding continued to decline, which added downside pressure on the prices.  The yellow metal touched an intra-day low of $1354.61/oz and closed at $1368.5/oz in yesterday’s trading session.  In the Indian markets, prices ended on negative note in the yesterday trading session taking cues from spot gold prices and closed at Rs.25963/10 gms after touching an intra-day low of Rs. 25902/10 gms on Wednesday.  Silver
Taking cues from decline in spot gold prices along with the strength in DX, Spot silver prices decreased by 0.8 percent in the yesterday’s trading session. Further, mixed global market sentiments coupled with weak economic data from UK exerted downside pressure. However, upside in the base metal packs cushioned sharp fall in the prices.  The white metal prices touched an intra-day low of $22.16 /oz and closed at $22.2/oz in yesterday’s trade.  On the domestic front, prices increased by 0.1 percent on the back of depreciation in the Indian Rupee and closed at Rs. 43226/kg after touching an intra-day high of Rs. 44600/kg on Wednesday.  Outlook: In the intraday, we expect precious metals to trade on a negative note on the back of strength in DX coupled with weak global market sentiments. Further, US Federal Reserve Chairman Bernanke hinted at reducing a bond buying programme which may exert downside pressure on the prices. Additionally, SPDR gold trust holding fell by 0.3 percent to 1020.07 tonnes on Wednesday lowest in more than 4 years, may keep prices under pressure. Apart from that, weak economic data from China along with expectation of unfavourable economic data from Euro Zone may act as a negative factor. In the Indian markets, depreciation in the Indian Rupee may prevent sharp fall in the prices. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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