• Gold and silver daily review (September 07, 2015)


    Spot gold prices traded lower last week on indications the Federal Reserve may still raise interest rates this year, despite recent market turmoil. Global equities dropped on fresh signs of economic weakness in China and uncertainty over the timing of the Federal Reserve's first interest rate increase in nearly a decade.

    Activity in China's factory sector shrank at its fastest rate in at least three years in August as domestic and export orders tumbled, hitting global markets and increasing fears that the world's second-largest economy may be heading for a hard landing.

    The dollar strengthened after the European Central Bank (ECB) cut inflation forecasts, while a U.S. jobs report that could provide clues on the timing of a Federal Reserve rate rise remained in focus. The ECB left interest rates unchanged at record lows as expected, but lowered its forecasts for inflation and economic growth, citing a slowdown in emerging markets and weaker oil prices.

    Last week, spot gold prices in the international markets declined by 1 percent to close at $1122.6 per ounce. On the MCX, gold prices declined by 0.4 percent to close at Rs.26711 per 10 gms.


    Spot silver prices traded lower marginally last week in line with fall in gold prices. Strengthening copper prices on one hand and stronger dollar on the other hand were governing factors for silver prices trajectory last week.

    Spot silver prices in the international markets declined by 0.1 percent to close at $14.6 per ounce. On the MCX, silver prices jumped by 0.9 percent to close at Rs.35388 per kg.


    On an intraday basis, we expect gold prices to trade lower continuing its weakness from the previous trading session. Besides, strengthening dollar will also act as a negative factor.

    On the MCX, gold prices are expected to trade lower today.

    Contributed by Angel Broking
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