Expect gold, silver prices to trade sideways today
New Delhi-India (Feb 27) Gold Spot gold prices gained 0.3 percent yesterday for the second day in a row as recent comments from Federal Reserve Chair Janet Yellen pushed back expectations for the first U.S. rate hike in nearly a decade to later in the year. At one point on Thursday, prices on the Shanghai Gold Exchange reached several dollars higher per ounce in comparison with international gold prices. China ranks second in the world behind India in gold purchases.
However, sharp gains were capped after stronger-than-expected U.S. data lifted the dollar and impetus from Chinese buying petered out.
On the MCX, gold prices rose by 0.4 percent yesterday and closed at Rs.26216/10 gms.
Silver Spot silver prices in the international markets fell by 0.2 percent yesterday owing to strength in the DX. However, strength in gold prices acted as a positive factor.
On the MCX, silver prices surged by 0.5 percent and closed at Rs.36628/kg.
On an intraday basis, we expect gold and silver prices to trade sideways today as investors will be cautious ahead of Prelim GDP data release from the US tonight.
Also, China's gold imports from Hong Kong rose in January from the previous month, reflecting increased demand ahead of the Lunar New Year will be supportive.
On the MCX, gold prices are expected to trade higher taking cues from international markets.