On an intraday basis, gold and silver prices are expected to trade lower on account of strength in the dollar coupled with negative trend in the SPDR gold trust although the holdings have recovered on Tuesday, says Angel Commodities.
Angel Commodities' report on bullion
Spot gold prices gained by 0.89 percent to $1209.2/oz on Wednesday boosted by firmer oil prices that prompted investors to shuffle positions while largely shrugging off the firm U.S. dollar.
The metal had fallen to a near three-week low on Monday after Switzerland voted against a proposal to boost its gold reserves. It then recovered to its highest in a month that same day as oil prices moved up from a five-year low.
The SPDR Gold Trust, the world's top gold-backed exchange-traded fund, saw inflows of 2.4 tonnes on Tuesday.
On the MCX, gold prices rose by 1.07 percent and closed at Rs.26776/10gms.
Spot silver prices declined by 0.2 percent to $16.4/oz in contrary to the gains in gold prices. Strength in the dollar index coupled with decline in copper prices also acted as a negative factor.
On the MCX, silver prices rose marginally by 0.01 percent and closed at Rs.37040/kg.
On an intraday basis, expect gold and silver prices are expected to trade lower on account of strength in the dollar coupled with negative trend in the SPDR gold trust although the holdings have recovered on Tuesday.
Switzerland rejection to boosts its gold reserves coupled with waning investment interest in the commodity will also exert downside pressure on prices.
On the MCX, gold and silver prices are expected to trade lower in tandem with falling international markets.
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