Gold prices came under pressure on Wednesday, taking cues from dollar strength coupled with weak market sentiments. A stronger dollar makes dollar-denominated commodities look expensive for the holders of other currencies.
The yellow metal touched an intra-day low of $1724/oz and ended at the level of $1733/oz yesterday. MCX Gold April contract declined around 0.7 percent and touched an intra-day low of Rs28,125/10 gms on Wednesday.
Silver
Spot silver prices traded lower by 0.6 percent on Wednesday, taking cues from fall in gold prices along with downside in base metals. Additionally, a stronger dollar also acted as a negative factor for silver.
The white metal touched an intra-day low of $33.63/oz and closed at the level of $33.95/oz yesterday. On the MCX, Silver March contract dropped around 0.8 percent on Wednesday and touched an intra-day low of Rs56,689/kg.
Outlook
We expect gold and silver to trade with a negative bias today, on account of a stronger dollar and weak sentiments in the markets due to rising worries over global economy.
Silver will also take cues from movement in gold and base metal prices.
Courtesy: Angel Commodities
Looking for Agri Research? Visit research.commodityonline.com
