Gold
Spot gold prices traded negative last week although data showed the U.S. labor market was weaker in June than expected, indicating that the Federal Reserve may hold off from raising interest rates in September.
The market was also following developments in the Greek debt crisis, which has so far failed to trigger strong retail demand for the metal, which is often perceived as a safe-haven asset. Good ADP data from the US also resulted in optimism about labor market in turn exerting downside pressure on the yellow metal.
The chairman of the Euro-group said it was too late to extend Greece's existing bailout and that the country's stance toward its creditors and euro zone partners would have to change before a new program could be agreed. The referendum on Sunday said no to the austerity measures proposed by the creditors which would result in stronger dollar and weak euro
In the international markets, spot gold prices declined by 0.6 percent last week and closed at $1167.44/oz. On the MCX, gold prices declined by 0.65 percent last week and closed at Rs.26352/10 gms.
Silver
Last week, spot silver prices in the international markets traded lower in line with weakness in gold prices. Strengthening dollar also acted as a negative factor for oil prices. Spot silver prices in the international markets declined by 0.57 percent and closed at $15.67/oz. On the MCX, silver prices declined by 0.8 percent and closed at Rs.35680/kg.
Outlook
On an intraday basis, we expect oil prices to trade sideways as the Nonfarm payrolls data did not come in good as per market expectations delaying the probability of hike in the interest rates in the US.
Greek debt crisis will continue to be a dominant factor for precious metals as the referendum says no to austerity measures in turn raising safe haven appeal of the yellow metal.
On the MCX, precious metals packs are expected to trade sideways today.
Contributed by Angel Broking
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