Expect precious metal to trade sideways today: Angel

Angel Commodities has come out with its report on metals and energy. According to the research firm, precious metals are expected to trade sideways on account bearish global market sentiments due to disappointment that Federal Reserve policy makers did not adopted monetary easing yesterday along with strength in the DX.


Gold: Spot gold prices declined around 1 percent yesterday taking cues from rise in risk aversion in the global markets. Additionally a stronger US Dollar index (DX) also exerted downside pressure on the prices. The yellow metal touched an intra-day low of $1591.74/oz and closed at $1,598.60/oz on Wednesday. On the MCX, Gold October contract declined by 0.5 percent and closed at Rs.29,607/10 gms in yesterday’s trading session. India raises gold import prices by $20/10 gms from $506/10 gms to $526/10 gms. The increase in gold import prices is in tandem with rise in global yellow metal prices.

Silver: Taking cues from the fall in the gold along with downside in base metals pack, Spot Silver prices declined around 1.8 percent in yesterday’s session. Additionally, a stronger DX also acted as a negative factor for the commodity. The white metal touched an intra-day low of $27.11/oz and closed at $27.40/oz in yesterday’s trading session. In the domestic markets prices fell by 1.5 percent after touching low of Rs. 52,662/kg and closed at Rs. 53,172/kg on Wednesday. India’s silver import prices have also rose by $32/kg to $898/kg from $866/kg as per the statement from Central Board of Excise and Customs.

Outlook: In today’s session we expect precious metal to trade sideways on account bearish global market sentiments due to disappointment that Federal Reserve policy makers did not adopted monetary easing yesterday along with strength in the DX. On the other hand positive expectation that European Central Bank might decide on stimulus measures today might support an upside. However, depreciation in Indian Rupee might cushion sharp fall.


Source:http://www.moneycontrol.com/news/brokerage-recos-commodities/expect-precious-metal-to-trade-sideways-today-angel_739185.html