According to Sushil Finance, gold and Silver prices are likely to trade on negative note on the back of ECB stress test results.
Sushil Finance's report on bullion
Gold edged lower on Friday and closed down for the week as rallying equity markets and strong U.S. economic data dented demand for the precious metal as an insurance against risk. Sales of new U.S. single-family homes rose to a six-year high in September, but a sharp downward revision to August's sales pace indicated the housing recovery remains tentative Bullion notched a 0.5 percent weekly loss, after two consecutive weekly rises driven by renewed worries about global economic growth. Holdings in SPDR Gold Trust, the world's top bullion exchange-traded fund, fell to their lowest level since late 2008 this week in a sign of lingering bearish sentiment in the bullion market. One in five of the euro zone's top lenders failed landmark health checks at the end of last year but most have since repaired their finances, the European Central Bank said on Sunday.
We expect gold prices are likely to trade on negative note on the back of ECB stress test results.
Silver edged up 0.1 percent to $17.17 an ounce on Friday. Sales of new U.S. single-family homes rose to a six-year high in September, but a sharp downward revision to August's sales pace indicated the housing recovery remains tentative. The Commerce Department said on Friday that sales increased 0.2 percent to a seasonally adjusted annual rate of 467,000 units, the highest reading since July 2008. August's sales rate was revised down to 466,000 units from 504,000 units. Economists polled by Reuters had forecast new home sales at a 470,000-unit pace last month. U.S. Treasury debt prices held on to gains after the data. U.S. stocks were slightly up, while the dollar edged down against the euro.
We expect Silver prices are likely to trade on negative note on the back of ECB stress test results.
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