According to Angel Commodities, gold and silver prices are expected to trade lower taking cues from weak international markets.
Angel Commodities' report on Bullion
Spot gold prices traded lower for most of the last week with prices making a low of $1216.45 and high of $1245.80. Rise in the dollar offset the supportive impact of concerns over Greece's future in the euro zone and fears over escalating violence in Ukraine, which hurt risk appetite.
Expectations of an interest rate rise in the United States weighed on investor sentiment. The Fed should raise interest rates in June, a top Fed official said last Tuesday, saying the U.S. economy was strengthening and inflation would move back to the central bank's target.
Sweden's Riksbank unexpectedly cut its key repo rate into negative territory and said it would soon buy bonds worth 10 billion Swedish crowns, catching investors off guard and prompting a flight to safety. Global shares rose as investors welcomed a ceasefire agreement between Russia and Ukraine.
In the international markets, spot gold prices declined by 0.33 percent last week and closed at $1229.2/oz. On the MCX, gold prices declined by 0.41 percent last week and closed at Rs.26691/10 gms.
Last week, spot silver prices in the international markets rose in contrary to the fall in gold prices. Strength in the dollar index and weakness in Nickel prices could not stop the rally in silver prices
Spot silver prices in the international markets rose by 3.59 percent and closed at $17.29/oz. On the MCX, silver prices rose by 3.19 percent and closed at Rs.38204/kg.
On an intraday basis, we expect gold and silver prices to trade lower as ceasefire between Russia and Ukraine has eased the geo-political tensions between two countries. However, Greece’s desperate attempt to persuade the EU with regards to its debt will raise the safe haven appeal of the yellow metal. Sweden’s monetary easing policy although has surprised the markets; it will not create the same impact as done by the ECB and Japan bond buying programmes.
On the MCX, gold and silver prices are expected to trade lower taking cues from weak international markets.
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