Commodities » Precious Metals

By Amar Singh, Reena Walia Nair (Angel Broking)

MARKET RECAP

Spot Gold prices declined yesterday after touching a high of $1137 as the dollar index wiped out early losses against the basket of six major currencies. The dollar index touched a low of 80.08 on Monday. The financial markets in US ended on a flat note which reflected in the rebound of the dollar from the day’s low.

OUTLOOK

The US is expected to announce data on economic optimism. Key economic data from the largest economy is scheduled to be released in the second half of this week. The US dollar could rebound if the Greece’s problems re-emerge hurting the sentiments of the investors. Moreover, Greece Prime Minister George Papandreou is expected to meet US President Barack Obama today in US.

Gold prices may come under pressure if the dollar strengthens back. The meeting between Barack Obama and George Papandreou is an important watch as the European central bank president Trichet has opposed Greece to take any financial assistance from IMF.