Gold
Spot gold prices traded lower last week as China's new policy measures to shore up the world's second-largest economy and risks that Greece may default largely dominated the price trajectory. Report of strong U.S. home sales in March, raising expectations for a June U.S. Federal Reserve interest rate hike.
Also, European Central Bank proposal to increase the insurance it would demand in return for emergency funding to Greek banks led to volatile movements in gold prices. Prices declined for third straight week as strength in global equities diverted interest from the precious metal, although uncertainty over the timing of a U.S. rate rise kept prices in a tight range.
In the international markets, spot gold prices declined by 2.1 percent last week and closed at $1178.87/oz. On the MCX, gold prices declined by 0.41 percent last week and closed at Rs.26701/10 gms. Rupee weakness of around 1.78 percent cushioned sharp downside in the Indian markets.
Silver
Last week, spot silver prices in the international markets traded lower in tandem with fall in gold prices.
Although dollar index was weak by 0.62 percent, profit booking at higher levels exerted downside pressure on silver prices. Strengthening nickel prices did not provide any cushion to the falling prices.
Spot silver prices in the international markets declined by 3.27 percent and closed at $15.69/oz. On the MCX, silver prices declined by 1.39 percent and closed at Rs.36668/kg.
Outlook
On an intraday basis, we expect gold prices to trade sideways as stronger dollar in today’s session will exert downside pressure while poor economic data from the US will boost the safe haven appeal of the metal.
On the MCX, gold prices are expected to trade sideways taking cues from international markets.
Contributed by Angel Broking
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