Spot gold prices rose to a one-month high of $1,646/oz on Wednesday after the news of a sharp increase in China’s gold imports which indicated improved demand from the world’s second largest consumer of gold.
China is preparing for the Lunar New Year this month which is a key gold-buying period.
However, sharp gains in the yellow metal were capped on account of a stronger dollar in yesterday’s trading session. On the MCX, Gold February contract rose around 0.4 percent on Wednesday and touched an intra-day high of Rs27,736/10 gms.
Silver
Taking cues from rise in gold prices, spot silver also rose around 0.2 percent on Wednesday. But strength in the US dollar resisted sharp gains in yesterday’s trading session.
The white metal touched an intra-day high of $30.24/oz and ended at the level of $29.9/oz on Wednesday.
MCX Silver March contract gained marginally by 0.1 percent and touched an intra-day high of Rs52,968/kg yesterday.
Outlook
Gold and silver are expected to trade slightly higher today as sharp gains will be capped due to a stronger dollar.
Courtesy: Angel Commodities
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