Gold
Spot gold prices rose marginally by 0.12 percent on Wednesday to close at $1096.3 per ounce. However, prices traded near last week's 5-1/2-year low, after a U.S. Federal Reserve statement raised uncertainty about the timing of a possible interest rate hike, leaving the door open for September.
Following a two-day policy meeting, Fed officials said they felt the economy had overcome a first-quarter slowdown and was "expanding moderately" despite a downturn in the energy sector and headwinds from overseas. The statement said the U.S. economy and job market continue to strengthen.
On the MCX, gold prices declined marginally by 0.13 percent to close at Rs.24720 per 10 gms.
Silver
Spot silver prices rose by 0.5 percent on Wednesday to close at $14.7 per ounce in line with strength in gold prices. Strengthening copper prices lifted silver prices.
On the MCX, silver prices rose by 0.55 percent to close at Rs.34721 per kg.
Outlook
The Federal Reserve in its two day meeting ended yesterday stated that the economy and the job market continue to show signs of recovery, however they have raised uncertainty about the timing of rate hike leaving the door open for September. This will be crucial for prices of the precious metals going forward.
On the MCX, gold prices are expected to trade lower today.
Contributed by Angel Broking
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