Gold, Siliver prices likely to trade negative: Sushil

Minutes from the Fed's March 17-18 meeting showed officials opening the door to a June rate rise.

Any rise by the Fed, which has kept rates near zero since 2008 to stimulate the U.S. economy, could reduce demand for non-interestyielding assets such as gold.

Demand from top gold consumer India appeared stronger, while buying from No. 2 consumer China remained weak with the premium on physical gold at the Shanghai Gold Exchange at about a dollar over the global spot benchmark after flipping to a small discount earlier.

Outlook

We expect gold prices are likely to trade negative on the back of the US interest rate outlook.

Silver

Silver fell 1.6 percent to $16.18 an ounce.

The Federal Reserve could still hike interest rates in June despite weak recent U.S. data and investor skepticism, two influential officials with the central bank said on Wednesday, putting the spotlight squarely on the economy's performance in the next two months.

Disappointing U.S. jobs growth, manufacturing activity, and retail sales over the winter had pushed market expectations for a rate hike to later in the year. June has long been seen as the earliest the Fed could tighten policy, after more than six years of near-zero rates.

Outlook

We expect silver prices are likely to trade negative on the back of the US interest rate outlook.

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