• Gold and silver daily review (September 21, 2015)


    Last week, Spot gold prices surged by 2.8 percent and touched one month high levels to close at $1139 per ounce as investors were cautious ahead of outcome of the Fed meeting to watch out for probable clues on timing of rate hike.

    Also, a weaker dollar ahead of the Federal Reserve decision on rate hike buoyed upside. Besides, declining inflation further bolstered hopes the Federal Reserve would stand pat on interest rates, thereby supporting the yellow metal. Data showing that U.S. inflation unexpectedly fell for the first time in seven months in August.

    In the latter part, Fed policy makers voted 9-1 to keep the federal-funds rate range unchanged at between 0% and 0.25% while taking notice of wild swings in global markets and weakness in the economies of main trading partners.

    On the MCX, gold prices jumped by 2 percent to close at Rs.26659 per 10 gms.


    Spot silver prices jumped by 3.8 percent last week to close at $15.2 per ounce. The gain is in tandem with rising gold prices and weaker dollar. Also, gains in base metals complex acted as a positive factor.

    On the MCX, silver prices rose by 3.2 percent to close at Rs.36813 per kg.


    On an intraday basis, we expect gold prices to trade higher today as risk aversion rose in the markets following the U.S Federal Reserve’s decision last week to leave interest rates unchanged bowing down to worries about the global economy, financial market volatility and sluggish inflation at home. However, volumes are likely to be low as Japanese banks will be closed in observance of the Bank Holiday.

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

    Contributed by Angel Broking
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