According to Angel Commodities, gold and silver prices are expected to trade sideways with probable uncertainty from Greece as the nation gets a time out from the Euro-zone.
Angel Commodities' report on bullion
Spot gold prices traded negative last week as a recovery in Chinese shares cooled fears of a wider rout in the major bullion consumer while strength in the U.S. dollar kept a lid on gains. The gold market was subdued after minutes from the U.S. Federal Reserve's last meeting, released on Wednesday, suggested caution towards a near-term increase in interest rates.
San Francisco Fed President John Williams said the Fed will likely raise rates this year but should only do so when there are firmer signs inflation is headed back up toward the central bank's 2 percent target.
Prices reversed after touching a four-month low on Wednesday as markets watched the tumble in Chinese stock markets and the unfolding Greek debt crisis.
In the international markets, spot gold prices declined by 0.33 percent last week and closed at $1163.56/oz. On the MCX, gold prices declined by 1.12 percent last week and closed at Rs.26058/10 gms.
Last week, spot silver prices in the international markets traded lower in line with weakness in gold prices. Weakness in the base metals pack coupled with profit booking acted as a positive factor.
Spot silver prices in the international markets declined by 0.51 percent and closed at $15.59/oz. On the MCX, silver prices declined by 0.18 percentand closed at Rs.35615/kg.
On an intraday basis, we expect gold and silver prices to trade sideways with probable uncertainty from Greece as the nation gets a time out from the Euro-zone. Stability in Chinese equities on the other hand will act as a negative factor for gold prices. Rise in the interest rates is one probable key factor that markets will eagerly watch for.
On the MCX, precious metals pack is expected to trade sideways today.
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