CO:Precious metals ends higher on weak dollar index
Spot Silver traded higher by more than 1 percent on Tuesday mainly on the back of weakness in the US dollar along with choppy global market seniments.
Prices touched an intra-day high of S34.37/oz and closed at $33.9 1/oz. Holdings in the iShares Silver Trust, the worlds largest silver-backed ETFs, dropped 8 percent from its peak in late April to 10,487.38 tonnes by 17th May.
On the MCX, silver July contract slipped almost 2 percent on account of Rupee appreciation and touched an intra-day low of 50,750/kg yesterday.
Outlook
We expect gold to trade higher today mainly due a weaker dollar coupled with onging Euro Zone debt concerns will provide support to bullion. Moreover, rising oil prices will also increase inflation hedge demand for gold.
