Bullion counter may trade on negative bias tracking profit booking in international markets as FOMC meeting minutes later today will give further direction to the prices. Gold can move in range of 31200-31600 while silver can move in range of 46000-46700 in near term. Gold posted the biggest gain in two weeks as equities and the dollar declined, drawing demand from investors who looked past speculation U.S. interest rates will rise this year.
Gold futures have climbed 28 percent this year on speculation the Fed will be slow to raise rates. While New York Fed President William Dudley told Fox Business Network that rates could rise as soon as next month, Fed funds futures data show the market is unconvinced, with the odds staying below 50 percent until February. Holdings in bullion-backed ETPs rose slightly to 2,027.6 tons on Monday, after falling the most this year on Friday.
Courtesy: Smc Comtrade